…Experts back Dangote, BUA on cement price reduction for FG estates
By Yahaya Umar
Ministry of Housing and Urban Development has announced plans to sell the 753-unit housing estate confiscated from the embattled former Governor of the Central Bank of Nigeria ,CBN, Mr Godwin Emefiele.
Disclosing this in a statement on Tuesday, the ministry said that the property was handed over by the Economic and Financial Crimes Commission ,EFCC, on Tuesday at the Ministry’s headquarters in Mabushi, Abuja.
According to the ministry’s spokesman, Salisu Haiba, the Minister of Housing and Urban Development, Mr Ahmed Dangiwa, praised the EFCC for its sustained commitment to asset recovery and anti-corruption.
“The Ministry of Housing and Urban Development has taken delivery of the 753 Housing Units Abuja housing estate of former Central Bank Governor, Godwin Emefiele, recovered by the Economic and Financial Crimes Commission”, the statement said.
“This marks a significant milestone in our collective determination to ensure that recovered assets are put to productive use in ways that directly benefit the Nigerian people. The housing estate recovered from the former Governor of the Central Bank is a case in point”.
He announced that the Ministry, in collaboration with the EFCC, will undertake a joint familiarization tour to assess the current state of the estate.
“We intend to carry out thorough integrity and structural assessments on all buildings and associated infrastructure to confirm their safety and suitability for habitation”, he explained.
“The Ministry will offer the units for sale both to the public and for special government needs. For the public sale component, we will adopt a transparent and competitive process. This will include nationwide advertisement and the use of the Renewed Hope Portal, where interested Nigerians can submit their Expressions of Interest”, Mr Dangiwa added.
Meanwhile, Economic experts have said the moves by the Chairman of BUA Cement Plc, Abdul Samad Rabiu and the Chairman of Dangote Cement Plc, Aliko Dangote to slash cement prices of Renewed Hope projects will reduce the cost of owning homes.
The CEO of NorthCourt Real Estate, Ayo Ibatu, and the Industrial Goods Analyst, Vevita Capita Management, Abigail Alabi, said this in reaction to moves by cement manufacturers.
Last week, Dangote and Rabiu announced after a meeting with President Bola Tinubu that they would freeze any cement price increase for all contractors engaged in projects under the Federal Government’s Renewed Hope agenda.
Dangote said, “We have decided that we are going to freeze the price of cement for any contractor that is involved with the Renewed Hope projects”.
Similarly, Rabiu said, “There will be no increase for the foreseeable future. This is our contribution to support Mr President’s Renewed Hope Initiative”.
Analysing the impact of the decision, the CEO of NorthCourt Real Estate, Ayo, said during an interview that the country faces an affordable housing challenge.
Findings shows that the housing gap has grown to about 28 million.
Ayo said, “They are committing as market leaders to take the heat despite circumstances that ordinarily
“It is for a good course and it is restricted to Renewed Hope Estate contractors”.
He argued that the deal needs monitoring to avoid abuse, which will discourage new entrants in the cement market.
He said cement accounts for about 40% of building cost.
“What this does is that it allows for long-term planning. We can do forward contracts and execute them quickly enough. We need to start seeing projects being done as a result of this commitment from market leaders.
“The idea here is to aggregate these costs and then ensure that the funds saved are not held by the developers in terms of expanded profit margins but passed down to end users in terms of reduced pricing per unit of housing”.
Industrial Goods Analyst at Vevita Capita Management, Alabi, said the development will affect the profit margins of cement makers.
Abigail acknowledged that the decision of the cement producers will benefit Nigerians when it comes to the pricing of the affected projects.
