Abdul Samad Rabiu, Chairman of BUA Cement, attributed the sharp rise in cement prices to the exploitative practices of intermediaries in the supply chain. Rabiu highlighted that these middlemen have thwarted the company’s efforts to maintain a price of N3,500 per bag throughout 2023.
Speaking at the company’s 8th Annual General Meeting in Abuja, Rabiu disclosed that BUA Cement sold over a million tonnes to distributors at the set price of N3,500 per bag, anticipating that these savings would reach consumers. However, these distributors instead inflated the prices, selling the cement at rates between N7,000 and N8,000 per bag.
In response to Nigeria’s housing crisis, the government has implemented several initiatives to increase affordability. Yet, many of these interventions remain out of reach for the average Nigerian, with high housing costs often attributed to rising material prices. The International Human Rights Commission reported that more than 28 million Nigerians lack access to affordable housing.
In May 2023, cement prices averaged N4,300 per bag but escalated to N7,500-N8,000 by May 2024, marking a 74-86 percent increase. This price surge has raised concerns that more Nigerians will be forced to live in substandard housing.
Rabiu explained that BUA Cement had to abandon its low-price policy due to the naira’s devaluation and the fuel subsidy removal, as it wasn’t sustainable to subsidize middlemen.
Quantity surveyor Adekunle Ebenezer emphasized that material costs, which comprise 50-65 percent of construction expenses, will inevitably be passed on to buyers, exacerbating housing affordability issues.
