Abdul Samad Rabiu, the Chairman of BUA Cement, has attributed the high cost of cement in Nigeria to the exploitation of consumers by middlemen within the supply chain. Rabiu noted that the activities of these intermediaries have undermined his company’s efforts to maintain a lower price point.
The rising cost of cement has significant implications for the housing sector. With building materials accounting for a significant portion of construction costs, developers are forced to pass on the increased costs to buyers. This has led to a surge in housing prices, making it difficult for many Nigerians to afford decent and affordable housing.
The International Human Rights Commission reported that over 28 million Nigerians lack access to decent and affordable housing. The recent increase in cement prices has further exacerbated this issue, as property owners may be tempted to occupy unfinished buildings without essential amenities to avoid escalating rental fees.
Rabiu explained that BUA Cement’s low-price policy became unsustainable due to various factors, including the devaluation of the naira and the removal of the fuel subsidy. Despite selling cement at a lower price, the company was unable to control the prices in the open market, where dealers were making substantial profits.
Experts have expressed concerns about the growing stock of unsustainable buildings in Nigeria. Adekunle Ebenezer, a quantity surveyor, noted that the need for a more holistic approach to building material selection is crucial. While sustainable building materials with low carbon emissions are often imported, their high costs can make them inaccessible for many.
The President of the Council for the Regulation of Engineering in Nigeria, Sadiq Abubakar, has linked the frequent building collapses in the country to the arbitrary increase in cement prices. He emphasized the need for standardization in building practices to address this issue.
The rising cost of cement in Nigeria is a complex issue with significant implications for the housing sector. While BUA Cement has made efforts to maintain a lower price point, the activities of middlemen and other factors have contributed to the overall increase. Addressing this issue will require a comprehensive approach that considers both supply chain dynamics and the broader economic context.
