Dreams of lower construction costs have again become a nightmare, due to increases in the prices of cement-based products affected recently by the manufacturers. Cement process were recently reduced by Dangote Cement Plc by ±40%. The move slashed cement prices from ±N2, 000 or N1, 850 to a price as low as N1, 350 or N1, 400 and N1000 per 50 kilogram bag.
However, the situation has drastically changed in the second quarter of 2016, as there has been price increases since May, says The Guardian market research. In locations in the Lagos area a bag of cement now sells between N1, 550, N1, 600, N1, 700, N1, 800 and N2, 000 across all brands. The new prices have further slowed down housing construction, real estate activities and increased the prices of other building materials such as ceiling boards, roofing sheets and paving stones.
A cement marketer, Sunday Ilesanmi, appealed to government to bring down the price as the sole regulator of the economy, so that people who have abandoned their projects as a result of hike in the price of cement could continue and so there would be more money in circulation.
