Login Register
feel free to call 09056000005

Housing Minister Alleges Cement Manufacturers Exploit Forex Volatility for Price Hikes

Architect Musa Dangiwa, the Minister of Housing and Urban Development, has voiced apprehensions regarding cement manufacturers leveraging fluctuating foreign exchange rates as grounds to substantially hike cement prices, exacerbating Nigeria's economic challenges.
Read also: FG SUMMONS CEMENT MANUFACTURERS OVER PRICE SURGE
These concerns came to the fore during a meeting convened by Dangiwa with prominent figures from the cement industry, including Rabiu Umar, Group Chief Commercial Officer of Dangote Industries Limited, Gbenga Onimowo, Commercial Director of Lafarge Cement PLC, James Salako, Secretary of the Cement Manufacturers Association of Nigeria (CMAN), and other industry senior executives. The meeting, held at the Ministry's headquarters in Abuja on Tuesday, was outlined in a press release published on the ministry's website.
 
The minister rebuked cement manufacturers for their insufficient efforts in curbing the escalating prices of cement, condemning an unacceptable surge from N5,500 to over N10,000 in recent months, representing a surge of over 100%.
Read also: LAGOS STATE GOVERNMENT'S HOUSING INITIATIVE: BUILDING 3,000 HOMES IN 5 YEARS, AIMING FOR 7,000 AMID POPULATION SURGE
"We are aware that key components for producing building materials, especially cement, are locally sourced. Hence, the recurring disproportionate rise in cement prices, attributed to foreign exchange fluctuations, is unjustifiable and unreasonable. Essential input materials such as limestone, clay, silica sand, and gypsum, readily available within our borders, should not be subject to foreign currency valuation," Dangiwa asserted.
 
He emphasized the need for cement manufacturers to desist from transferring the burden onto Nigerians amid minor macroeconomic challenges and instead advocated for innovation and strategic development as members of the established committee.
 
Musa Dangiwa, Nigeria’s population
 
Furthermore, Dangiwa highlighted that the surge in cement prices undermines housing delivery efforts, a primary focus of the Ministry and a key priority for the Bola Ahmed Tinubu administration.
 
"For instance, a one-bedroom apartment initially budgeted at about N8 million would now cost twice as much, approximately N16 million. This renders homeownership unattainable for many Nigerians and has compelled several individuals to suspend construction projects," he lamented.
Expressing deep concern over the current situation, particularly in light of ongoing initiatives aimed at providing affordable and social housing to low and medium-income earners and vulnerable segments of the population, Dangiwa stressed the potential impact of rising cement and building material costs on these plans.
 
"We have already initiated projects such as the Renewed Hope Cities and Estates in 15 states and the PULAKU Initiative, intending to construct at least 1,000 houses in seven states affected by banditry. However, the escalating costs threaten to impede these endeavors," he remarked.
 
The minister directed Dr. Marcus Ogunbiyi, the Permanent Secretary, to expedite the committee's deliberations and formulate recommendations addressing the concerns raised by the manufacturers for submission to the Federal Executive Council.
Source: Nairametrics
 

Similar Topics

US Election Race Intensifies: How Results Could Impact Nigeria’s Real Estate Market As the...

a month ago Read More

Equatorial Guinea Official Baltasar Engonga Ebang’s Video Sparks Controversy In recent days,...

a month ago Read More

Nigeria’s digital real estate company, Sytemap, has raised concerns over the ongoing trust...

2 months ago Read More

Governor Babajide Sanwo-Olu of Lagos State has urged for more investment to address the persistent...

2 months ago Read More

Housing sector stakeholders have raised concerns that the rising interest rates in the country are...

2 months ago Read More

Lagos State Governor, Babajide Sanwo-Olu, has emphasized the significance of innovation,...

2 months ago Read More

The Association of Private Practicing Surveyors of Nigeria (APPSN), a subgroup of the Nigerian...

2 months ago Read More

Nigeria has been admitted into WorldSkills International, marking a historic milestone in the...

3 months ago Read More

The Federal Government has launched the Ministry of Finance Incorporated Real Estate Investment...

3 months ago Read More

The National Board for Technical Education has inaugurated the Sector Skill Council for...

3 months ago Read More

The Environmental Defense Fund has partnered with Africa Practice to combat climate change in...

3 months ago Read More

The Minister of Housing and Urban Development, Ahmed Dangiwa, has reiterated the crucial role of...

3 months ago Read More

The Real Estate Developers Association of Nigeria has announced initiatives aimed at enhancing...

3 months ago Read More

The Global Environment Facility has approved $3.28m to tackle land degradation in Kebbi State under...

3 months ago Read More

The commercial real estate market is currently grappling with several major challenges, including...

3 months ago Read More

Real estate development is a key driver of economic growth in any region, and Africa is no...

3 months ago Read More

The Federal Government has signed a Memorandum of Understanding with Shelter Afrique...

3 months ago Read More

The Federal Government has issued a 90-day deadline for subscribers of the National Housing...

3 months ago Read More

The Minister of Housing and Urban Development, Ahmed Dangiwa, has disclosed that plans are underway...

4 months ago Read More

A real estate firm, Gestpoint Nigeria Limited, has implored the Federal Government to simplify the...

4 months ago Read More