By Charles Edet, Esq., FCr
The reported rise in the price of cement to as much as ₦15,000 per bag in some parts of Nigeria is a matter of serious concern, particularly at a time when millions of Nigerians are struggling with the rising cost of housing and other essential needs.
How can a country blessed with abundant limestone deposits and significant cement-production capacity make homeownership increasingly difficult for its citizens?
For civil servants, pensioners, artisans and average-income families, the dream of retiring into a personally owned home is becoming more challenging. When the cost of cement rises, the prices of blocks and other building materials are also affected, increasing overall construction costs. Developers may consequently adjust property prices, while landlords could eventually pass some of these increased costs on to tenants.
Major cement manufacturers should provide greater transparency on the factors responsible for the prices consumers are currently paying. The relevant regulatory authorities should also continue to examine developments in the cement market and, where necessary, make their findings and recommendations available to the public.
More importantly, where is the National Assembly?
The Senate and House of Representatives have an important role to play in addressing issues affecting the affordability of essential building materials. Relevant committees should engage manufacturers, regulators, distributors and other stakeholders to better understand the factors contributing to the current price levels and determine what measures can reasonably be taken to protect consumers and promote a healthy market.
Where existing laws or policies require improvement, the legislature should consider appropriate amendments. Where there are concerns about regulatory effectiveness, the relevant authorities should be invited to provide explanations and account for their responsibilities.
Any allegation of anti-competitive practices or other wrongdoing should, of course, be properly investigated by the competent authorities, with appropriate action taken where evidence establishes a violation of the law.
Government must act urgently to address the rising cost of building materials. Affordable housing cannot be achieved without making construction more accessible to ordinary Nigerians.
Nigerians need breathing space. Policymakers, regulators, manufacturers and other stakeholders must work together to explore sustainable measures that can moderate construction costs, encourage homeownership and ultimately contribute to making housing and rents more affordable for ordinary citizens.