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From Isaac Anumihe, Abuja
As inflation drops and dollar rate stabilises, federal government has expressed worry over the cost of construction materials especially cement which is still stagnating at N9,500.
Minister of Works, Engineer David Umahi, expressed the concern in Kogi State when he granted an interview to newsmen.
According to him, with the decline in inflation, food prices and dollar stabilising, it is worrisome why a locally-produced commodity would still remain high.
“Inflation is coming down, the dollar is being stabilised; yet cement price has moved from N7,500 to N9,500.
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“Same with chippings, same with sand. You need to help me find out why. Why should that be?
“It is like what we read in physics about the behaviour of water. At a temperature of minus 4 degrees, it starts behaving differently. So, that can be what we are experiencing in terms of construction materials. Help me find out,” he asked helplessly, adding that food prices are coming down and “we are very happy about that,” he said.
Recall that in a meeting with Umahi in February this year, cement manufacturers had stated that until the cost of gas and the high foreign exchange are arrested, the price of their products will not be less than N7,000. Other challenges the manufacturers listed include high import duties on spare parts, bad road network and smuggling of cement to neighbouring nations.
The meeting had in attendance the representatives of Dangote Cement Plc, BUA Cement Plc, Lafarge Africa Plc and Cement Producers Association.
