The Nigerian Institute of Quantity Surveyors has backed the Federal Government’s threat to cement manufactures to open the boarders for cement importation into the country if they do not reduce cement price.
NIQS’s President, Kene Nzekwe, made this disclosure on Thursday in Abuja at a press conference organised by the Institute to tackle the impact of hyperinflation on Nigerian construction industry: urgent need for government intervention for stabilizing construction costs in Nigeria.
He explained that presently, cement manufactures are holding the country to ransom with about 100 per cent to 150 per cent increase in price within six weeks, while admonishing the Minister of Housing and Urban Development, Ahmed Dangiwa to not just threaten the manufactures but work on opening the borders to importation if the manufactures fail to reduce their price.
Admitting that inflation is part of economic cycles, Nzekwe however, noted that what Nigeria is currently facing is hyperinflation, which is an uncontrollable surge in general price levels.
He said, “We support the Minister’s threat to cement manufactures in the country about opening the boarder for importation and we hope it goes beyond threats and the government actually does it because the manufactures are holding Nigeria to ransom. The price of cement, using a 50kg bag as an indicator, between January 2024 and February 2024 a period of about six weeks, has increased from N4,500 to between N12,000-N13,000. This is an increase of 100 percent to 150 percent. Reinforcement steel rods, another major material for construction moved from around N590, 000 -N650,000 per ton as of January 2024 to N1,200,000 -N1,400,000 as of February 2024 an increase of over 100 percent in a short period of less than six weeks.
“This ugly trend is making it more difficult for prospective clients to afford construction projects and has forced many projects to stall, pushing contractors into financial distress. The repercussions extend beyond stalled projects; it impedes the development of crucial infrastructure such as roads, hospitals, and educational facilities. Private sector investors are also reluctant, creating an adverse cycle that hampers economic growth and job losses in the construction industry.”
