Block moulders in the country have concluded plans to raise the prices of blocks by between 11 per cent and over 30 per cent, following the recent increase in the prices of cement.
The new price regime for blocks is expected to come into effect immediately after the moulders call off their five-day strike on Friday (today).
The announcement came on Thursday just as the Chairman, Cement Company of Northern Nigeria Plc, Mr. Abdulsamad Rabiu, said the high cost of doing business in Nigeria was a major reason for the hike in the prices of cement.
The price of cement had last week risen from N1,500 per 50kg bag to between N2,400 and N2,500.
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The President, National Association of Block Moulders of Nigeria, Alhaji Rasco Adebowale, said on Thursday that with the new price regime, the 6x9x18 load-bearing blocks would sell for N220 per unit, accounting for a 37.5 per cent increase over the previous price of N160.
The 9x9x18 load-bearing blocks will sell for N250 per unit, up from N220, while the 6x9x18 and 9x9x18 non-load bearing blocks will sell for N200 and N180, up from N180 and N160 per unit, respectively, according to him.
He said, “NABMON, rising from its one-week break in production and sales, has made recommendations on quality control and new prices for our products.
“In view of the incessant building collapse nationwide, private block moulding activities without the knowledge, supervision and control of the association are hereby prohibited. All members of the association have also been enjoined to comply with standards and quality to justify the new prices.”
A professor of Building at the University of Lagos and the Vice-Chairman, Council of Registered Builders of Nigeria, Martin Dada, said the new price regime was a reaction to market forces but added that it would pose a challenge to the building industry and the economy in the long run, if it was not reversed.“We know that this is not a good omen for the economy. The challenge is that there is no assurance that the blocks will retain quality. So, we are already courting danger for the future,” he said.
He said the rise in the prices of cement and its ripple effects on the housing sector in particular, and the economy in general, would increase cases of building collapse in the country.
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