•Raises technical panel, set to ahead validated issues to FEC
•Producers checklist challenges, need govt intervention
Emmanuel Addeh in Abuja
The Minister of Housing and City Growth, Mr Ahmed Dangiwa, yesterday met with cement producers within the nation over the “unreasonably” excessive costs of cement and different constructing supplies nationwide.
Dangiwa spoke on the ministry’s headquarters in Abuja when he summoned cement producers to a gathering over the difficulty.
After listening to the issues raised by the important thing actors within the sector, together with Dangote Group, Bua and Lafarge, the minister famous that cement producers weren’t doing sufficient to stem the tide.
At a time Nigerians have been anticipating the charges they purchase cement to stoop, given latest guarantees by the producers, the costs of cement had lately risen by over 100 per cent.
The minister who was seemingly unconvinced by the explanations enunciated by the producers, thereafter directed the Everlasting Secretary within the ministry, Dr. Marcus Ogunbiyi, to get the committee that was arrange working rapidly, so that each one validated issues might be forwarded to the Federal Government Council (FEC).
He expressed displeasure over the regular and alarming enhance, accusing the producers of hiding behind the present FX challenges to inflict hardship on Nigerians.
The minister described the state of affairs as unacceptable, explaining that the incessant hike had seen the value rise by over 100 per cent, from N5,500 just a few months in the past to greater than N10,000 right now.
“This represents a 100 per cent rise. And it’s not solely cement; we’ve additionally seen near-record excessive escalations within the costs of different constructing supplies reminiscent of iron rods and different fittings.
“I recall that late final 12 months, BUA Cement introduced a commendable discount within the worth of cement from N5,500 to N3,500 per bag. I applauded the gesture, and a number of other different stakeholders did too. However right now, the truth is that of escalating cement costs. Clearly, this can be a disaster for the housing supply.
“A rise in important constructing supplies means a rise within the costs of homes. A rise in the price of constructing homes means increasingly Nigerians can now not afford to personal homes and supply respectable shelter,” he mentioned
He charged the producers to be sincere of their dealings, stressing that Nigerians know that among the key elements of manufacturing constructing supplies, particularly cement, are domestically sourced.
In accordance with him, key enter supplies reminiscent of limestone, clay, silica sand, and gypsum inside Nigerian borders shouldn’t be calculated based mostly on fluctuations within the greenback trade price in opposition to the naira.
“You can not proceed to offer excuses and blame it on greenback on a regular basis. The worst half is that different constructing supplies’ producers take a cue from cement producers, and as soon as they see that you simply enhance your worth, they do the identical as nicely. Not too long ago, that is occurring virtually each week, and it has to cease,” he mentioned.
He urged cement producers to be revolutionary and give you a roadmap as a part of the committee that had been set as much as deal with the challenges.
Dangiwa mentioned the state of affairs poses a risk to housing supply which is the principle focus of the ministry.
“For instance, if we have been planning to construct a one-bedroom house for about N8 million, it would now price twice that a lot, about N16 million to construct. If a Nigerian might afford to personal a house of N8 million, it would now be unimaginable to take action. We’re additionally conscious of a number of individuals who’ve needed to droop development work due to this improvement,” he mentioned.
He added that the ministry was alarmed by the present state of affairs, particularly contemplating the tasks the ministry had launched into to supply reasonably priced and social housing supply to low- and medium-income earners and weak members of society.
Additionally talking, the Minister of State within the ministry, Abdullahi Gwarzo, referred to as on the producers to make some sacrifices of their operations, reminding them that they’ve a company social duty to face by Nigeria in troublesome instances.
“This isn’t the time to focus an excessive amount of on revenue, however on our collective duty to the folks of Nigeria. Cement producers should realise that as authorities, we’ve choices.
“However we might not need it to get to the purpose the place we’ve to make use of these choices as a result of it might not be good for native producers. That’s not to say we shouldn’t have choices,” he said.
Of their remarks, the cement producers, who’re primarily coping with the identical points, listed the rising worth of fuel, which they mentioned is absolutely denominated in {dollars} in addition to dangerous roads, rising price of apparatus and growing worth of diesel as a few of their challenges.
Whereas in search of authorities intervention, they famous that there had been latest makes an attempt to deploy different alternate options like coal and electrical automobiles for transportation.
Current on the assembly have been the Group Chief Business Officer of Dangote Industries Restricted, Rabiu Umar; Business Director of Lafarge Cement Plc, Gbenga Onimowo; and Government Secretary of the Cement Producers Affiliation of Nigeria (CMAN), James Salako, amongst others.
