In an effort to combat the persistent surge in cement and building material costs and ensure the availability of affordable housing in Nigeria, Arc. Ahmed Dangiwa, the Minister of Housing and Urban Development, has unveiled plans for a summit with cement manufacturers and other industry stakeholders.
The objective is to gain deeper insights into the challenges within the sector, devise effective strategies to alleviate the escalating expenses of building materials, and explore sustainable solutions to address these issues.
This announcement was made during a courtesy visit by a delegation comprising the Federal Mortgage Bank of Nigeria (FMBN), the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and the Nigeria Employers Consultative Association (NECA). The discussion centred on the progress of collaboration between FMBN and labour unions, particularly regarding the National Affordable Housing Delivery Programme for Nigerian Workers (NAHDEP), which was initiated during Arc. Dangiwa’s tenure as Managing Director of FMBN.
Expressing concern over the recurrent and disproportionate hikes in cement prices, Arc. Dangiwa questioned the rationale behind such increases, especially since local materials constitute the bulk of production inputs for cement manufacturers in Nigeria.
He asserted, “It is disheartening to see how much Nigerians have to pay for essential building commodities like cement, with the prices rising almost daily. I don’t understand the reason for this increase, and it is not acceptable. I am going to be meeting with these manufacturers soon so that they can explain to Nigerians their reasons for such incessant hikes. I know that the cement producers source their raw materials in Nigeria; limestone, clay, silica sand, gypsum, iron ore, and the rest. These minerals abound in Nigeria, and these manufacturers get them here, so there is no justification to try and blame it all on the rise of the dollar.”
Arc. Dangiwa reassured the delegation of President Bola Ahmed Tinubu’s administration’s unwavering commitment to providing affordable and decent housing for low- and medium-income earners, as well as vulnerable segments of society. This commitment encompasses fostering an enabling environment for private sector growth, which includes ensuring accessibility and affordability of building materials.
Earlier in January, the Ministry inaugurated the Building Materials Reform Task Team as part of its efforts to revitalise the building materials industry. The initiative aims to establish building materials manufacturing hubs across the six geopolitical zones of Nigeria.
While these hubs are yet to become operational, Arc. Dangiwa stressed the importance of continued engagement with industry stakeholders, including building materials manufacturers, to promote affordability.
Regarding the collaboration between FMBN and organised labour, Arc. Dangiwa highlighted the necessity for reform and innovation within FMBN operations. He urged the NLC, TUC, and NECA to view FMBN and the National Housing Fund (NHF) Scheme as integral platforms deserving of their support and encouragement in delivering decent housing to their constituents.
Arc. Dangiwa emphasised President Tinubu’s commitment to reforming all federal housing agencies under the ministry’s purview. This commitment is exemplified by the establishment of the Housing Institutions Reform Task Team, tasked with reviewing and facilitating necessary legislative amendments to housing industry laws, including the NHF Act, 1992, and the FMBN Establishment Act, 1993.
