" /> Hike in cement price will compound housing deficit — Dealers | Hallmarknews
Published On: Tue, Sep 6th, 2016

Hike in cement price will compound housing deficit — Dealers

Two cement dealers in Umuahia have expressed concern over last week’s sharp increase in the retail price of cement, saying that it would compound the housing deficit in the country, if not checked.

Speaking on the development in Umuahia over the weekend, they said that they were jolted by the hike.

They said that the hike had caused a lull in their business with an attendant drop in their daily sales and income.

A major dealer at the Umuahia Industrial Market, Mr Iheanyi Omeokwe, said that the hike would negatively affect the building industry.

Omeokwe, who is the Chairman, Building Materials Association, said that the new price would make it difficult for many Nigerians to build their own houses.

“We are deeply worried over the sharp increase in the price of cement. Already, with Monday’s price hike, our sales have dipped.”

He said that many individuals who were building houses, suddenly suspended work as soon as the new price regime came into effect.

He said that cement dealers were the worst-hit and expressed fear that many of them might soon go out of business.

“If you used to place order for 100 bags before, now you can only order for 50 bags with low sales, then gradually you will find yourself shutting down,” Omeokwe said.

Another dealer in the market, Mr Obinna Elijah, spoke in the same vein, saying that the sharp price increase “spells doom for cement dealers across the country.

“You can see that the whole market is dull. I was sleeping and at a point I decided to walk around to shake off sleep.

“This is the situation we have found ourselves since Monday when the new price regime took effect.”

He decried the percentage of the increase, saying that price hike in the past were usually between N50 and N100 per bag.

“The current hike of almost 50 per cent has never happened before,” he said, adding that the news of the hike came as a big surprise to them.

“We did not have any inkling that there would be a price increase. Last Saturday, we sold a bag at the old price of between N1, 450 and N1,500.

“Surprisingly, when we came to market last Monday, we were told by distributors that the price had gone up.

“We heard the news like every other Nigerian,” he said, adding that the increase had slowed down business.

A dealer in ceramic tiles, Mr Emmanuel Okereke, said that the increase in the price of cement also caused a drop in the demand for tiles in the market.

“Tiles are fixed with cement and often in new buildings. With the drop in the number of new buildings springing up, our business is also affected,” Okereke said.

A civil servant, Mr Peter Ogboso, who is also into property development, decried the sharp increase in the price of cement.

Ogboso feared that the new price could discourage prospective land developers, adding that it would also aggravate the accommodation need of the populace.

The respondents urged the immediate intervention of the Federal Government in order to salvage the situation.

They said that since the hike was caused by the high foreign exchange rate with N420 exchanging for one dollar, government should give concession to cement manufacturers.

They opined that the concession would help them to import the chemicals for the production of cement.

They also called for the construction of more cement factories and the revitalisation of the ones that had gone moribund over the years.

“This will help to boost production to meet the demand for the commodity and make it affordable in the country,” Ogboso said.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Recent posts

  • Time is ripe for rates cut, says Rewane as inflation slows further in Oct.

    FELIX OLOYEDE This is the appropriate time for the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to cut benchmark monetary rates after inflation rate slows down for the ninth consecutive time in October, said Mr Bismarck Rewane, Managing Director, Financial Derivatives. The National Bureau of Statistics on Tuesday released Consumer Price […]

  • ELAN National Lease Conference Focuses on Revamping Nigerian Economy

    FELIX OLOYEDE In furtherance of its objective of promoting the business of leasing in Nigeria, Equipment Leasing Association of Nigeria (ELAN) has concluded plans to organise the 15th Annual National Lease Conference with focus on revamping the Nigerian economy. The conference which is the biggest gathering of stakeholders in the leasing industry is expected to […]

  • Nigeria-centric restaurant, Labule, opens new outlet in Lagos

    Labule, Nigeria-centric restaurant, operated by an indigenous company, Roots Foods Limited, offering real Nigerian local delicacies in a unique environment that combines the setting of a modern quick service restaurant with that of an African setting of a local ‘buka’, has opened a new outlet on Admiralty Road in Lekki Phase 1, Lagos. The brand […]

  • Nigerian banks shine in Ghana

    By JOHNMARK UKOKO Nigerian banks have been credited with “revolutionizing “the banking sector in Ghana, due to the many innovations they brought to Ghana’s banking sector. The Ghana Deputy Minister of Trade and Investment Hon. Carlos Kingsley Ahenkorah said in Lagos that the innovation and transformation of the Ghana’s banking sector is credited to the […]

  • Ajimobi moves to save Oyo APC from disintegration

    By OLUSESAN LAOYE The seeming crisis in Oyo APC has now forced the Governor of the state, Abiola Ajimobi, to begin consultations with stakeholders to convinced members on why they must come together as a body to face the 2019 general elections, Although the internal crisis is yet to break open as the aggrieved party […]

  • YolaDisCo sale stalled as no potential buyers emerge

    By ADEBAYO OBAJEMU Two years after the core investors of the Yola Electricity Distribution Company, YolaDisCo, declared a force majeure owing to their inability to operate under the reign of terror unleased by Boko Haram, the Federal Government is yet to find any investor interested in operating the utility company, it has been learnt. In […]

  • Company Analysis: Much Ado about Seplat

      By TESLIM SHITA-BEY The oil and gas sector has had a bumpy since the beginning of 2017 with local oil major, Seplat, seeing its financials whipped raw by prior year liabilities despite rising revenues over the nine months (9M). The company in the last two years has moved from being distinctively bad to singularly […]

  • How to start a photography business

    By ZUBAIR DANIE While photography could be accounted for as a full blown course in any offering institution of learning for professionalism, the field equally provides a platform for individuals whose passion it is to project images as a form of livelihood. The socio-cultural aspect of Nigerians that play host of events like: wedding, naming, […]

  • BOFE to celebrate unsung heroes in local communities

    OluwasolaJesuseitan, a brand and advertising expert, is an advocate of sustainable brand communications. He is also the founder, Business Owners Forum Enterprise (BOFE), a non-profit making organization, which seeks to build the capacity of business owners in and around Akute, Ogun State. He tells FELIX OLOYEDE in this interview of his organization is promoting business […]

  • Lager wars: Who wins?

    By JOHNMARK UKOKO Nigeria has many lager beer producing companies, some have been in existence for over 50 years while others are quite new in existence in the country. Some of these companies that have over the years churned out millions, if not billions of bottles of beer to Nigerian drinkers are: Nigeria Breweries Plc, […]

  • Nestle sparkles in Q3 results

    By OKEY ONYENWEAKU As the packaged Consumer goods (PCG) sector struggles to stay ahead of falling consumer demand, companies such as Nestle Nigeria plc are bucking the trend of businesses with shrinking bottom lines. Indeed the multi-product packaged goods producer has seen earnings rise to mind boggling with its pre-tax profit rising by a stunning […]

  • 2018 Budget proposals renew old anxieties

          FELIX OLOYEDE   Mixed reactions trailed the presentation of the 2018 federal government budget by President Muhammadu Buhari to the National Assembly (NASS) last week. Public policy analysts have expressed moods from the congenially positive to the outright incredulous. The staggering N8.6 trillion expenditure plan is one of the most audacious in […]

  • Anambra 2017: Obiano battles for life

    By Obinna Ezugwu The time has finally arrived. On Saturday the people of Anambra State will head to the polls to either renew the mandate of the incumbent state governor, Chief Willie Obiano who is running for a second term in office, or elect fresh hands from among other prominent contenders, including Mr. Oseloka Obaze […]

  • (Editorial) CBN’s BVN distraction and matters arising

    Nigeria’s fiscal and monetary authorities have a frustrating way of responding to the seizure of private assets; they typically gloat with glazed eyes over private citizen’s money ready to pounce on the cash like a pack of hyenas starved witless. The recent order by the Central Bank of Nigeria that customer accounts that are not […]

  • 12 Yoga tips for beginners

    The popularity of yoga has soared in the last decades, and it seems that every other friend and acquaintance of ours is already practicing it. But don’t let it fool you into thinking it is easy: yoga is quite challenging, especially for beginners. The good news is that there are some practical tips to make […]

  • Finally, embattled IGP, Ibrahim Idris, appears before Senate

    The Inspector General of Police, Ibrahim Idris, has arrived before the Senate ad hoc committee set up to investigate the allegations and counter-allegations between him and Senator Isa Misau. The IGP was accompanied by his lawyer, Alex Iziyon (SAN) and Special Assistant to the President on National Assembly Matters (Senate), Senator Ita Enang.   Details […]


Visit us on Google+