Reps Raise Concerns Over Increase in Price of Cement
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Reps Raise Concerns Over Increase in Price of Cement
By Roselyn James
The House of Representatives has expressed concern over the rising cement prices, citing detrimental effects on the national economy.
Deputy Speaker, Benjamin Kalu raised the concerns during a hearing on Tuesday in Abuja, conducted by the House Joint Committee on Solid Minerals, Industry, Commerce, and Special Duties.
Kalu said cement is crucial for building vital infrastructure such as roads, bridges, dams, homes, and waterworks. Referencing data, Kalu noted that Nigeria faces a significant housing shortfall of 16.9 million units.
He pointed out that, according to the World Bank, annual housing demand in major cities like Lagos, Ibadan, Kano, and Abuja is growing by 20%.
Despite this, less than 100,000 housing units are produced annually in the formal sector.
Kalu argued that to bridge this gap, cement prices need to be affordable for both the public and private sectors.
He acknowledged that while fluctuating currency rates have driven commodity prices up, there has been a positive shift with the naira appreciating against the dollar recently.
This comes alongside Fitch Ratings’ upgrade of Nigeria’s credit outlook from stable to positive, signaling economic resilience.
Kalu also mentioned legislative plans aimed at preventing future escalations in cement prices.
Jonathan Gaza, Committee Chairman, echoed Kalu’s concerns in his remarks.
He stressed the importance of regulatory measures that foster development while cautioning against the unchecked rise in cement prices, which he believes could severely impact infrastructure development and have broader negative economic implications.
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