Monday 28 April 2014

PERSISTING CEMENT PRICE HIKE:PROSPECTIVE HOME OWNERS LAMENT MISERY.


Despite the fact that Nigeria’s four major cement companies (Dangote Cement, Lafarge, Ashaka and CCNN) reported a 23 percent growth in full-year 2013 revenues to N522.5 billion, as growing economic activity fuelled demand for the building material. Prospective homeowners and property developers are lamenting about the hardship they presently face, as a result of the persisting rise in the cost of cement nationwide.
Investigations monitored by GOT Formation Limited reveal that, a 50kg bag of cement, now sells for between N1, 700 and N2, 100 as against N1, 650 and N1, 800, the prices for which it was sold in last quarter of 2013.
Further reports reveal that the persisting increase in the price of the product must have been as a result of high demand for cement and the inability of manufacturers to meet up with demand. Added to this is that dealers in cement have continued to take advantage of the increasing demand for the product to hike the price of cement.
Property developers have continued to bemoan the high cost of the product, which they claimed is affecting the cost of doing business in the construction industry.
Could developers not explore alternative methodology? my humble thoughts

Written by Ezenwa Francis, GOT Formation Limited.

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