Construction experts suggest regulatory framework in cement industry

Some operators in the building and construction industry on Wednesday called for adequate regulatory framework in the cement manufacturing industry to control operations of the industry.

They told the News Agency of Nigeria (NAN) in Lagos that there was need for the Federal Government to bargain either through policy framework or other mechanisms to control the price of cement.

Mr Chucks Omeife, former President, Nigerian Institute of Building (NIOB), said that some cement manufacturers were profiteering, saying there was the need to checkmate the excessive acts of operators in the industry.

Omeife said there was no raw material used for cement production that could not be found within the country.

“If not all but at least 95 per cent of the raw materials used in cement production can be found in Nigeria and that is an added advantage for the producers.

“With the possibility of sourcing the raw materials locally, a bag of cement should not be sold at a price higher than N1, 500 and the manufacturers will still make their profit.

“So, for the manufacturers using the cost of providing electricity supply as an excuse to inflate the price of cement is not ideal,’’ he said.

Mr Fitzgerald Umah, Chairman of the Nigerian Institute of Architects (NIA), Lagos Chapter, suggested the establishment of more cement manufacturing plants.

Umah said the high cost of cement was as a result of few cement manufacturing plants, saying that availability of more cement manufacturing plants would crash down the price.

He said that establishment of more cement manufacturing plants would make production of cement more competitive.

According to him, competitiveness helps to reduce price, grow the market and improves the production and quality of goods/services.

Umah complained about the daily increase in the prices of cement, saying that the hike in cement prices was affecting building construction developments.

He noted that the increase in cement price did not bring along a corresponding increase in its quantity or quality.

“For instance, the services and products of the telecommunication companies are cheaper and more affordable now because there are many producers in the industry that make the market competitive.

“During the second quarter of 2015, a bag of cement sells for N1, 000 or N1, 100 but now, a bag of cement is N2, 700 or N2, 800 depending on the brand.

“Cement is a major component of building materials and that is why any change in its price or availability affects construction activities to a great extent.

“This makes it paramount that more manufacturing plants be established in order to crash down the price and make cement readily available at all times,’’ Umah said.

-NAN