Like Cement, Price of Another Building Material Jumps From N8,500 to N18,500
- The price of iron rods used for building houses has risen significantly in the past couple of days
- This came after the price of cement rose significantly to reach N12,000 and N13,000 in February 2024
- According to reports, in a few days, the price of 16mm rod has significantly risen from N8,500 to N18,500
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Prices of iron rods, also called reinforcements, have risen significantly, outpacing the rise in cement prices.
Source: Getty Images
This came after the price of cement rose by over 100% in less than 30 days, from between N5,000 and N5,500 to between N12,000 and N13,000 earlier in the year.
Similarly, the price of a 16mm rod has risen from N8,500 to N18,500, reflecting N10,000 or over 100% increase in a few days.
Businessday reported that cement and rods were important components of building and construction materials.
Although rods are of different sizes for different uses, it was reported that structural engineers recommend 12mm, 16mm, 20mm, 25mm, 10mm, or 8mm, depending on the strength of the material and other design specifications.
How Nigerians are reacting
Many Nigerians have raised concerns about the high cost of building materials.
They contended that the ripple effects are not just about discouraging investment in housing or shrinking the job opportunities it creates but also about narrowing the chances of more people leaving the housing market.
Experts, however, have begun calling on the government to declare a state of emergency on the building materials sub-sector.
Olufunso Adebayo, a property consultant, said:
“With a staggering housing deficit estimated at 28 million units as of 2023, and a homeownership level that is just 25% of the country’s over 200 million population, Nigeria should be intentional about affordable housing delivery.”
He said the government has to act fast to ensure that what is obviously an oligopoly in the cement industry is broken or makes good its threat of opening the borders for cement imports.
According to Smith Ezenagu, MD/CEO of Esso Properties Limited, everybody is talking about cement alone, but it's not just because there are other materials like rods and sand.
He said in an interview with pressmen in Lagos:
“In fact, if nothing is done to curb the current prices of building materials in Nigeria, we might get to a point where shelter will become a luxury and not a basic necessity. Apart from the government stepping in like they are doing to curb these things, I believe this is the time we explore alternative buildings like wooden houses and others."
Ezenagu noted that the rising cost of materials is a major problem in the real estate industry. According to him, the consequence is that developers are pulling out of sites, and if nothing is done to curb this and get things to a level of stability, there will be a major crisis in the industry soon.
He disclosed that he started a project in the Epe area of Lagos in October last year when he bought a trip of sand for sand-filling at the cost of N37,000.
He lamented:
“Three months after in January, I started a project in one of my estates in Ibeju Lekki, Emerald Garden Estate, and I bought sand at the rate of N90,000. That’s an almost 200% increase in price in just three months.”
Dangote, BUA, Lafarge make over N2trn from sales
Legit.ng reported that Nigeria's top cement producers, Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement, have announced a combined revenue of N2.35 trillion for 2023.
Analysis showed that Dangote Cement continued to stand out as Nigeria's most profitable cement company, boasting the highest revenue of N2.21 trillion.
BUA Cement also saw its revenue increase to N459 billion in 2023, while Lafarge Africa's revenue rose to N405 billion.
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Source: Legit.ng
