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Housing Minister Alleges Cement Manufacturers Exploit Forex Volatility for Price Hikes

Architect Musa Dangiwa, the Minister of Housing and Urban Development, has voiced apprehensions regarding cement manufacturers leveraging fluctuating foreign exchange rates as grounds to substantially hike cement prices, exacerbating Nigeria's economic challenges.
Read also: FG SUMMONS CEMENT MANUFACTURERS OVER PRICE SURGE
These concerns came to the fore during a meeting convened by Dangiwa with prominent figures from the cement industry, including Rabiu Umar, Group Chief Commercial Officer of Dangote Industries Limited, Gbenga Onimowo, Commercial Director of Lafarge Cement PLC, James Salako, Secretary of the Cement Manufacturers Association of Nigeria (CMAN), and other industry senior executives. The meeting, held at the Ministry's headquarters in Abuja on Tuesday, was outlined in a press release published on the ministry's website.
 
The minister rebuked cement manufacturers for their insufficient efforts in curbing the escalating prices of cement, condemning an unacceptable surge from N5,500 to over N10,000 in recent months, representing a surge of over 100%.
Read also: LAGOS STATE GOVERNMENT'S HOUSING INITIATIVE: BUILDING 3,000 HOMES IN 5 YEARS, AIMING FOR 7,000 AMID POPULATION SURGE
"We are aware that key components for producing building materials, especially cement, are locally sourced. Hence, the recurring disproportionate rise in cement prices, attributed to foreign exchange fluctuations, is unjustifiable and unreasonable. Essential input materials such as limestone, clay, silica sand, and gypsum, readily available within our borders, should not be subject to foreign currency valuation," Dangiwa asserted.
 
He emphasized the need for cement manufacturers to desist from transferring the burden onto Nigerians amid minor macroeconomic challenges and instead advocated for innovation and strategic development as members of the established committee.
 
Musa Dangiwa, Nigeria’s population
 
Furthermore, Dangiwa highlighted that the surge in cement prices undermines housing delivery efforts, a primary focus of the Ministry and a key priority for the Bola Ahmed Tinubu administration.
 
"For instance, a one-bedroom apartment initially budgeted at about N8 million would now cost twice as much, approximately N16 million. This renders homeownership unattainable for many Nigerians and has compelled several individuals to suspend construction projects," he lamented.
Expressing deep concern over the current situation, particularly in light of ongoing initiatives aimed at providing affordable and social housing to low and medium-income earners and vulnerable segments of the population, Dangiwa stressed the potential impact of rising cement and building material costs on these plans.
 
"We have already initiated projects such as the Renewed Hope Cities and Estates in 15 states and the PULAKU Initiative, intending to construct at least 1,000 houses in seven states affected by banditry. However, the escalating costs threaten to impede these endeavors," he remarked.
 
The minister directed Dr. Marcus Ogunbiyi, the Permanent Secretary, to expedite the committee's deliberations and formulate recommendations addressing the concerns raised by the manufacturers for submission to the Federal Executive Council.
Source: Nairametrics
 

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