In recent times, the dream of owning an affordable home seems to be slipping away for many, as the prices of major building materials continue to soar relentlessly. Notably, the costs of cement and iron rods have been steadily increasing, casting a shadow over construction projects across the nation.
Cement: A Steep Climb in Prices
The price hike in cement has been particularly striking, with costs skyrocketing by over 100 percent within a span of just 30 days. In January, cement was priced between N5,000 and N5,500, but by February 2024, prices had surged to between N12,000 and N13,000.
Iron Rods: Following Suit
Not to be outdone, the prices of iron rods, crucial components in construction, have also surged dramatically. For instance, the price of a 16mm rod jumped from N8,500 to N18,500 in a matter of days, marking a staggering increase of N10,000 or over 100 percent.
Importance of Cement and Iron Rods in Construction
Cement and iron rods are indispensable elements in building and construction. Iron rods, available in various sizes, are essential for load-bearing purposes, with different thicknesses recommended by structural engineers based on specific design requirements. The recent price surge has affected the hot rolled deformed bars, commonly used for reinforcing concrete in beams, pillars, and columns of buildings.
Impact on Housing and Construction
The exorbitant costs of building materials have elicited widespread lamentation among Nigerians. Beyond discouraging investment in housing and constriction, the ripple effects extend to job opportunities and accessibility to affordable housing. With a staggering housing deficit and a low homeownership rate, the affordability crisis looms large.
Calls for Government Intervention
Experts and industry stakeholders are calling on the government to intervene urgently. Suggestions range from breaking the oligopoly in the cement industry to exploring alternatives such as importing cement to lower prices. There are also calls to declare a state of emergency in the building materials sub-sector to address the crisis.
The Real Estate Industry at Risk
The escalating cost of materials poses a significant threat to the real estate industry. Developers are feeling the pinch, with some forced to abandon projects due to unsustainable costs. Without intervention, the industry could face a major crisis in the near future.
Personal Testimonies Reflecting the Crisis
Real estate developers, like Smith Ezenagu, highlight the severity of the situation through personal experiences. Ezenagu recounts the drastic increase in the price of sand within just a few months, illustrating the challenges faced by industry players.
Conclusion
The rising cost of building materials, particularly cement and iron rods, presents a formidable challenge to the construction industry and the dream of affordable housing in Nigeria. Urgent government intervention is needed to address the crisis and ensure the sustainability of the real estate sector. Failure to act swiftly risks exacerbating the housing deficit and widening the gap in homeownership accessibility.
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BY: OLOWOOKERE EMMANUEL