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.