Editorial
Checking Rising Cost Of Cement
The ever-rising unit cost of cement in Nigeria is one issue which in the past decade has agitated the minds of stakeholders, particularly those in the housing and construction industry.
It is therefore little wonder when Lagos State Governor, Raji Fashola recently challenged the Federal Government to take decisive steps in combating the rising price of cement, to among other things, salvage the construction industry from imminent collapse.
Fashola’s worry is not isolated from that of other key players in the construction industry, who had, in several fora, expressed similar frustration over the persistent rise in price of cement. In fact, every well-meaning Nigerian feels the disturbing effects of the phenomenon.
The situation is so critical that the rising cost of cement has made the commodity to be beyond the reach of ordinary Nigerians desirous to build or own houses of their own. This is in spite of President Goodluck Jonathan’s intervention early last year.
During the interface with cement manufacturers and firms in the country, the president had prevailed on cement producers to review downwards, the cost of the product, so as to save the housing and construction sectors from imminent collapse.
The appeal, coming from the Number One Citizen, was heeded by the producers but the relief from that review was shortlived few months after, as the price of cement again skyrocketed to hit the roof top.
Sadly, the housing and construction industry continues to suffer, as the situation has worsened the nation’s housing deficit and apparently aggravated the problem of the average Nigerian, especially the poor.
Besides, the phenomenon has triggered high cost of rents and shelter so much so that even the middle-class could hardly afford decent houses for themselves or their families.
Apart from the negative impact of the cost of cement on the citizens, the situation has obvious implications on government’s aggressive infrastructural development policies at all tiers such as roads, bridges, housing, health and education facilities, among others.
It is against this backdrop that The Tide urges the cement manufacturers to look inwards and invest more on improving their productive capacity in the country, as a means of boosting job creation and reducing crime wave amongst the youth.
More importantly, key producers like Dangote, Ibeto, Eagle Cement, Ashaka Cement, among others, need to re-strategise so as to meet up with local demand of the product in order to avoid short-fall in supply of cement which usually leads to hike in price of the product.
On the other hand, the Federal Government should identify areas of concern and at once articulate measures that must provide the enabling environment for cement production to strive. One way to do this is to ensure that there is improved infrastrudure, particularly the need to provide regular power supply, good roads and a dependable transportation system.
Also, government should consider tax waivers and other incentives to the producers to encourage more competitive production activities by manufacturers which we believe would push down cement price.
In the interim, however, government should as a matter of urgency, liberalise the import of cement so as to make up for the shortfall in the demand of cement. This will, in the long run, help force down the price of the product, and enable government achieve its goals in the housing and construction sector, while accelerating the infrastructural development momentum of the country.
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Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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