FG Moves To Establish Building Material Hubs

The Federal government has disclosed its plans to establish building materials manufacturing hubs nationwide to actualize the Action Plan for housing and urban development. The establishment of the hub, which the FG said was in line with the ministry’s housing reform initiatives, was aimed at delivering decent, affordable, and quality housing to Nigerians across all income segments.   The Minister of Housing and Urban Development, Mr. Ahmed Dangiwa, disclosed this recently during a courtesy visit by a delegation from the International Financial Corporation (IFC), led by Dr. Dahlia Khalifa – Regional Director, Central Africa, and Anglophone West Africa, in Abuja. Represented by the Minister of State, Alhaji Abdullahi Gwarzo,  Dangiwa said: “Establishing Building Materials Manufacturing Hubs across the country, implementing a Nationwide Urban Renewal and Slum Upgrading programme is one of the actionable strategies to achieve the renewed hope agenda in housing development. “Also, the development of New Cities that are integrated and inclusive, using a demand-driven strategy that will ensure prompt offtake of units built,” he said. The minister further listed other strategies put in place to achieve the renewed hope agenda including strengthening the institutional capacity of agencies under its supervision including the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA). Dangiwa added that plans to increase the risk of supply of decent and affordable housing, establishing a National Social Housing Fund (NSHF), and implementing land reforms to enhance easy and cost-effective access to land were also in place. He commended the work of the IFC in providing funding for developmental projects across Africa. Dangiwa further assured the corporation of the ministry’s commitment to transparency and accountability in their collaborations. “Our sole goal is to deliver on Mr. President’s objective of providing decent and quality accommodation to all Nigerians, especially the 80 percent falling within the medium and low segments.  We aim to build livable communities and leverage the housing sector to lift 100 million Nigerians out of poverty”, he said. Earlier, the Senior Country Manager of the IFC, Mr Kalim Shah, had noted that housing was a major focus of the IFC across Africa where they service both the supply and demand sides of the industry. He said the purpose of the visit was to understand what the ministry was doing and see how the group could partner and support their efforts to enhance the delivery of affordable housing to Nigerians. “We see some honest desire on the part of the new government to provide affordable housing to the people, and we’ve come as partners to see how we can support what you’re doing. As an arm of the World Bank, our focus is primarily on private sector investment, so we are looking for areas where we can work with the ministry in line with your vision for decent and affordable housing solutions to Nigerians, “he said. Also speaking,  the Senior Investment Officer, Public-Private Partnership of IFC, Alexander Leigh, said the corporation wished to engage the ministry in a bid to identify the specific areas of need and know how to provide solutions. He added that the IFC considers factors like access to land and its administration, construction costs, the situation of beneficiaries to occupy the houses, and affordability in its dealings with countries, and expressed excitement at the ministry’s efforts to address such issues.

BUA Cement’s Price Reduction Will Boost Affordable Housing –Minister

The Minister of Housing and Urban Development, Architect Ahmed Musa Dangiwa has commended the decision by BUA Cement Plc to reduce the price of cement to N3,500 from about N5,500. According to the minister, the gesture will reduce the cost of cement, which is a major cost in building construction. A statement by Deputy Director, Information, Federal Ministry of Housing and Urban Development, Salisu Haiba Badamasi Tuesday in Abuja, quoted Dangiwa as saying that BUA Cement Plc’s decision represents a substantial stride toward easing the financial burden on aspiring homeowners. He underscored that the soaring cost of cement has led to a drastic increase in house prices, making them unaffordable for the average Nigerian. Dangiwa emphasized that since assuming office, he has made promoting the delivery of affordable housing a top priority in line with the Renewed Hope Agenda of Mr. President “The escalating prices of building materials, especially cement, have placed a daunting obstacle on the path to homeownership for many Nigerians. BUA Cement Plc’s decision to reduce the price of cement to N3,500 is highly commendable. It reflects their understanding of the struggles faced by ordinary Nigerians and is a positive step towards making housing more affordable and attainable for all,” he noted. “I commend BUA Cement Plc for their socially responsible decision to reduce the price of cement. Accessible and affordable housing is a fundamental right, and this move by BUA Cement Plc will undoubtedly alleviate the challenges faced by our citizens. It demonstrates a shared commitment to improving the lives of our people and furthering the goals of sustainable urban development” The Minister added that the company’s initiative will not only benefit individual homeowners but will also stimulate economic growth, create jobs, and lift many Nigerians out of poverty by fostering affordable housing construction and infrastructure development. The minister urged other industry players to emulate BUA Cement’s example, urging them to consider the social impact of their decisions. He expressed the belief that collaborative efforts between the government and private sector entities are essential in overcoming the challenges related to housing affordability and ensuring the realization of decent living conditions for every Nigerian citizen.

Cement Price Won’t Hit N9000; Road Contractors Always Inflating Contracts, Says Umahi

The Minister of Works, Senator Dave Umahi has debunked claims by Cement manufacturers that the price would hit N9,000 if the government starts constructing concrete roads. According to the minister, the claims were all campaigned against him by the cabals in the construction industry. Umahi, who made the remarks during a meeting with contractors handling federal roads, expressed dismay at how contractors cheat Nigerians in the materials they use to construct roads in the country. He lamented that roads that are currently constructed in the country would not last for seven years after they are completed. The minister said the contractors have been in the habit of increasing the cost of their projects to swindle the country through contract variation and the use of asphalt materials, which are subject to the international price of crude oil. He added that he has stopped the signing of the funds to be released to contracts who are seeking price variation of their contracts, and bemoaned the pains Nigerians face while traveling on federal roads saying he had to feel their pains when he traveled to Edo state from Abuja. “There is no project being constructed right now in Nigeria that is going to last for seven years. The question is, are we going to be maintaining or reconstructing our roads every 10 years? That is what we have been doing. I traveled from Abuja to Benin City through Lokoja, all the stretches of the road are on contract, ongoing; this is through the policy of the last administration but how much of the roads are motorable? “I traveled through the roads myself and I shed tears for the kind of pain our people are going through. I spent 14 hours on the road having started my journey from 10am and got to Benin City at 2 pm the next day. I was very happy I experienced the pain. “President Tinubu said I must travel through all the projects so that I will brief him on my experience and tell him the truth.” He added that he is doing his work with the fear of God as he is representing the people and I receive instructions from the President.

Concrete Road Will Drive Cement Price To N9000 —Manufacturers

Cement manufacturers under the umbrella of the Cement Producers Association of Nigeria have warned that the price of the product may further rise following plans by the federal government to introduce the use of concrete for road construction. Fielding questions from journalists at its AGM, the Chairman of BUA group owners of Bua Cement said cement prices will drop from N5000 to N3500 by January 2024 when its new plants finally begin operation. The Minister of Works Dave Umahi since his appointment has been an advocate of the use of concrete for road construction, as according to him, it lasts longer than roads constructed with asphalt. In a statement jointly signed by PrinceDavid Iweta and ChiefReagan Ufomba, the National Chairman and National Secretary respectively, the Association warned that the price of cement may rise to as N9000 from the present ₦5000. However, the Cement manufacturers warned that there would be dire consequences if the supply end is not addressed properly, noting that if it is not addressed the price of cement would not come down. The Association therefore called on the government to emphasise road designs that allow both cement technology and asphalt pavement to run concurrently. “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps. “While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike. “We also call on the Honourable Minister of Works to lay more emphasis on the design criteria of roads that allow both cement technology and Asphalt pavement to run concurrently, in turn, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling. We must also as a nation regulate static and dynamic load traffic by introducing weighbridges at access points on our highways.” While urging the present administration to conclude the backward integration policy started by late President Yar’adua administration, the Cement manufacturers noted that availability and affordability of the product cannot be achieved if the government fails to break the chain of monopoly and favouritisms. It, therefore, called on President Bola Tinubu’s government to permanently solve this perennial cement price hike problem by expanding participation in the sector with companies who have verifiable evidence of local investment, including greenfield licenses and quarrying.