By Kingsley Adegboye

Following President Goodluck Jonathan’s directive to cement manufacturers to bring down to a reasonable level, the price of cement within 30 days, the price of the product which went up to N2,500 per 50 kg bag has started crashing.

Vanguard Homes & Property which visited major retail outlets in Lagos, observed that a 50 kg bag of cement is now sold between N1,850 and N1,900 . It is believed that the price of the product will further crash before the expiration of the 30 days deadline.

Vanguard Homes & Property which sampled the views of construction industry professionals on the presidential directive, observed that they sang discordant tunes on te issue.

While some commended the president for this intervention and pledged their support to ensure the directive works, others are skeptical that the directive may be another political gimmick by the president.

The President, Nigerian Institute of Architects, NIA, Arc. Tunji Bolu lauded the President Jonathan for intervening in the cement crisis. According to him, the NIA will monitor the order to ensure that the cost of cement is brought down.

He said his institute will continue to collaborate with the government on issues that will benefit the generality of Nigerian citizens.

But a past chairman of the Nigerian Institute of Building (NIOB) and Chief Executive Officer, Reo-Habilis Construction Ltd, Mr. Kunle Awobodu said President Jonathan’s directive is an order devoid of reality.

He wants te President to address factors militating against the production of the product like the high cost of diesel and distribution logistics.

Awobodu said the President should have been well informed about the reality in the cement sub-sector of the economy before making such an realistic pronouncement.

According to Mr. Awobodu, recognition of the reality is the beginning of wisdom. He pointed out that for long, the country has been monopolised by the activities of a cabal.

The directive by the president on cement can also be seen as taken a courageous step at dissolving the cement cabal, he noted. “I pray that he does not stumble while threading the revolutionary path,” he said.

Mr Awobodu said Nigerians should be conscious of a free market economy where concomitant forces determine the price, as government directive may become effete (something that cannot function). “Coincidence could turn to favour President Jonathan’s pronouncement.

Why? This is because new plants in some of these cement manufacturing companies will commence operations any moment from now with production spanning from 2.3 million metric tonnes to 8 million metric tonnes per annum for some of them.

“And this development added to the existing production capacity will surpass the over 12million metric tonnes required as at today. Also, the demand for cement any moment from now will suffer declivity due to the impending rainy season. So, invariably, the present pronouncement will seem to have effect, and that will translate into a temporary success. More importantly, the government needs to address the factors that tend to raise cost of cement production such as diesel and power.

“In addition, logistic challenges in cement distribution should be vigorously addressed. The poor condition of our roads is a big threat to the durability of trucks. Government must quicken its pace and bring back life into the railway system to assist in the massive distribution of cement.

There should be a thorough monitoring of the implementation of cement backward integration policy. Availability of the product will obviate scarcity which will inevitably sink the boat of profiteering middlemen.

In the final analysis, it will be healthy for the construction industry and the nation’s developmental space in general if the price of cement can be brought down below N1000 per bag. It will crash high cost of construction since cement is a major ingredient in that sub-sector”, Awobodu noted.