Property Operators Urge FG To Intervene In Cement Price Hike | Independent Newspapers Limited
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Property Operators Urge FG To Intervene In Cement Price Hike

Posted: Sep 16, 2016 at 6:55 am   /   by   /   comments (0)

Operators in the real estate industry have urged the Federal Government to intervene in the recent cement price hike due to its current adverse effects on housing development.

They said on Thursday in Lagos that the 44 percent increment, in a country where majority of the raw materials were sourced, was high.

According to them, considering the factors listed for the increment, the 44 percent increment at a swoop has affected housing construction.

Chucks Omeife, the former President, Nigerian Institute of Building (NIOB), said the hike was outrageous.

Omeife attributed the hike to the monopolistic nature of the cement market.

Omeife said that cement production had been dominated by one major producer with few other minor producers.

He said that the price of cement increased so high because there was little or no competition in the market.

“Most of the materials used in the manufacturing of cement are sourced locally except for few materials which are sourced outside the country.

“Even with the increase in exchange rate, which the producers capitalised on, it is still not enough reason for up to 44 percent increase at a time,” he said.

Olayemi Shonubi, past chairman, Nigerian Institute Quantity Surveyors (NIQS), Lagos branch, urged government to encourage other producers to move into cement production.

Shonubi said more manufacturers would make the sector competitive such that little changes would not affect the entire sector.

“The government needs to encourage more local producers virtually in all other sectors because it is only through local production and consumption of the products that the country can quickly come out of its current economic downturn,” he said.

Ayo Adejumo, Executive Secretary, Association of Town Planning Consultants of Nigeria, urged the government to resolve the issues in the forex market to reduce the naira exchange rate.

Adejumo said that the causes of the economic meltdown were due to high exchange rate.

“The moment government is able to resolve the issues in the forex market, the cost of transportation, production, inflation and all other economic crises will be corrected,” he added.