The House of Representatives has expressed concern about the ongoing increase in cement prices, stating that it negatively affects the overall economy.
Deputy speaker Benjamin Kalu made these remarks during a hearing in Abuja regarding the unjustified hike in cement prices.
Kalu stressed the importance of cement in building essential infrastructure like bridges, dams, houses, waterworks, and roads.
He said that Nigeria had a housing deficit of 16.9 million, according to statistics.
“According to the World Bank, Lagos, Ibadan, Kano, and Abuja have a 20 per cent rise in housing needs yearly,” he stated.
Mr Kalu said the total output in the formal housing sector was estimated at not more than 100,000 units.
Read Also:
The lawmaker added that bridging the gap required affordable and accessible cement prices for both the government and the private sector. He said while factors such as exchange rates had contributed to the rising prices of commodities, it was encouraging to see the value of the naira increasing sharply against the dollar.
“Notably, the naira has shown remarkable strength against the dollar in past weeks, and Fitch Ratings, a global credit rating agency, recently revised Nigeria’s credit outlook to positive from stable. We are also dedicated to enacting laws that prevent a recurrence of the factors that led to the current situation,” Mr Kalu said.
The committee’s chairman, Jonathan Gaza, said the recent hike in the price of cement was worrisome.
“Nigeria has a high deficit of housing and other infrastructure. To close this gap, both government and the private sector must be articulate and deliberate in putting the right policies and parameters in place to encourage development.
“Therefore, should the price of cement which is a major component for infrastructure development continue to soar uncontrollably, the tendency to stifle life out of that sector is high and the consequences very detrimental,” Mr Gaza said.
