Business
Consumers Decry High Cost Of Cement
Following the earlier promise by
the Federal Government to make cement readily available to citizens through a reduced price, it has become apparent that the cost of the product was yet to drop.
It would be recalled that the government assured that the price would be in the neighbourhood of N1000 or less two years ago but investigations conducted by our correspondent recently, prove otherwise.
For example at the mile 3 building materials section, the various brands of the product are sold between N1,800 and N2000.
An estate developer, Mr. Pius Onyeali who spoke to our correspondent said the high cost of the product was discouraging people from building.
According to him, the development was responsible for the increase in undeveloped plots both in the urban, semi-urban and rural areas.
He further explained that until the price of cement stabilises, people would be forced to do sub-standard jobs.
However, Mr. Eugene Okere who operates a block moulding enterprise at Rumuokoro blamed dealers of the product for the arbitrary increase.
He said while the retailers point accusing fingers at the suppliers or wholesalers the brunt of the high cost was borne by the final consumer.
In a swift reaction, a cement seller at mile 3 market, Mr. Chizioke James who spoke to our correspondent said he and his colleagues have always been fair while selling the product.
He said distance and brand were determinant factors in pricing even as he said government should do more in the area of fixing the price of cement.
Recently however, the president of Dangote Group, Alhaji Aliko Dangote while addressing newsmen assured Nigerians that the high cost of cement will soon be over.
According to him, Dangote cement plans to increase its production lines in three key plants in the country in efforts geared toward crashing the price and making the product available to Nigerians.
Highlighting further, he said plans were already concluded to expand the capacity of its lines at Obajaina, Kogi State, Gboko, Benue State and Ibese, Ogun State from 19.25 million metric tones (MMT) by additional 9 million tones by the end of 2014.
On the production of the new 42.5 grade of cement, Dangote said the move was borne out of the quest to prevent further building collapse and its attendant loss of lives and property.
He explained that before investing in the new grade of cement, manufacturers concentrated only in the production of 32.5 grade of cement despite the fact that they had the capacity to produce the 42.5 grade.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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