AGS NEWS – Developers in Nigeria’s construction industry have expressed dissatisfaction with the recent agreement reached between the Federal Government and cement manufacturers regarding the reduction of cement prices.

During a meeting, it was decided that the prices of cement would be lowered to a range between N7,000 and N8,000 per bag.

However, this decision has been met with criticism from stakeholders in the construction sector.

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Dr. Aliyu Wamakko, President of the Real Estate Developers Association of Nigeria, voiced concerns about the economic implications of the reduction.

He argued that cement is a critical component in construction projects and emphasized the need for affordability.

Wamakko highlighted previous promises by BUA Cement to lower prices to N3,500 per bag, questioning why this commitment was not fulfilled.

Wamakko insisted that for meaningful progress to be made, the price of cement should not exceed N5,000 per bag.

He warned that higher prices would lead to incomplete building projects, exacerbating the existing housing deficit in the country.

Toye Eniola, Executive Secretary of the Association of Housing Corporation in Nigeria, echoed similar sentiments, criticizing the negotiation process and its potential impact on housing affordability for low-income earners.

Eniola advocated for the utilization of local building materials as a cost-effective alternative.

Sola Enitan, CEO of Cromwell Professional Services International Limited, described the reduction as inadequate, emphasizing the potential long-term consequences of rising cement prices on housing accessibility and rental costs.

Jide Odusolu, CEO of Octo5 Holdings, expressed skepticism about earlier promises made by BUA Cement to reduce prices, calling for transparency in pricing and urging government intervention to address underlying issues such as gas costs and infrastructure challenges.

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While cement manufacturers have agreed to the new pricing structure, stakeholders in the construction industry continue to advocate for measures to ensure affordability and accessibility to essential building materials, particularly for low-income households.