One of the
leading manufacturers, BUA Cement Plc, has stated that it had not and did not
intend increasing price of the product, barring any unforeseen circumstance.
According
to the firm, the huge difference in the ex-factory price of the commodity and
that of retail market was because retailers were taking advantage of increased
demand to maximise profit helped by production and supply gaps.
In
a statement yesterday, the company confirmed that it had been inundated with
calls seeking clarification as to whether it was part of a purported price
increase of N300 per bag.
The document
read in part: “We stand by our previous statements that the timing is not right
for any increase in the price of major commodities while we work towards
ramping up our production capacity to ensure that commodities like cement
remain accessible and affordable for our consumers.
“While
we are aware that demand for cement is high with current supply levels not
sufficient to meet this increased demand, we do not believe the solution lies
in an increase in ex-factory prices of cement – especially not at this period.
“It
is our strong conviction that any increase in prices of major commodities at a
time like this is not right – while Nigerians are still trying to recover from
the economic consequences brought about by the COVID-19 pandemic – especially
for a product for which all raw materials are locally sourced.
“BUA
Cement, therefore, wishes to restate that it is not a part of the purported
increase in cement prices and, we once again, enjoin and appeal to our
distributors, who have been advised, to ensure there are no further arbitrary
increases or excessive profit-taking in the retail price of cement.”
IN
a related development, the Nigerian Institute of Estate Surveyors and Valuers
(NIESV), at the weekend, decried the high cost of building materials in the
country.
It
maintained that if government was desirable of providing affordable housing for
the low and medium-income earners, as well as the less privileged and
vulnerable people, special attention must be paid to the exorbitant prices of
building materials.
President/Chairman
of the National Council of NIESV, Chief Emmanuel Wike, made the submission
during a press conference to mark the fifth council meeting of the body in
Benin City, Edo State.
He
noted that inadequate electricity supply had also contributed immensely to
Nigeria’s under-development over the years.
The
NIESV boss regretted that an economy of 180 million population and some 12,500
megawatts of installed capacity could only transmit between 3,500 and 5000
megawatts to the final consumer.
The
continued tinkering with the structures of power supply and distribution in
addition to several billions of dollars expended since 1999, he noted, had only
brought darkness, frustration and misery upon Nigerians.
He
added that about 60 per cent of the total cost of construction goes into
building materials.
No comments:
Post a Comment