In Nigeria, whenever the word “cabal” is mentioned, it often evokes images of powerful, shadowy figures operating around the seat of power, whether at the national level (Aso Rock Villa, the country’s seat of power) or the subnational level. The concept became popular during the Goodluck Ebele Jonathan presidency, but it has since become a recurring feature of our political life. The Muhammadu Buhari presidency had its own cabal, and the Bola Ahmed Tinubu presidency has its own.
What exactly do cabals do? Essentially, they are self-serving groups of privileged individuals who exploit their access to power, information or influence for personal gain. They are unelected leaders who manipulate those in authority and, in some cases, effectively control the levers of power. They operate in the shadows, exploit their privileged positions, and, more often than not, place personal interests above those of the nation and its people. They are economic saboteurs. That is why cabals are dangerous.
Unfortunately, there is ample evidence that the cabal phenomenon, loathsome as it may seem, is not confined to the corridors of power where its members often determine who gets which appointment. We have just been reminded of another kind of cabal, the one manipulating the price of cement, one of the most important materials needed for housing Nigerians.
FCCPC’s expose
The Federal Competition and Consumer Protection Commission (FCCPC), one of the most active government agencies under this administration, has raised concerns about what appears to be an organised cabal’s manipulation of cement prices in the country. Given that cement is a critical resource in the nation’s march towards addressing its huge housing deficit, this is a serious allegation that deserves more than the usual public outrage, which often fades after a few days.
To understand why Nigerians cannot afford to let this fade away, it is important to emphasise that cement is not a luxury item. It is a basic material required for building a house, a school, a hospital, a road, or virtually any meaningful piece of infrastructure, including the Lagos–Calabar coastal highway and the Sokoto–Badagry superhighway.
In a country grappling with a frightening housing deficit and residents battling soaring rents, the crime of manipulating cement prices should not be taken lightly, as the cost of cement directly affects ordinary Nigerians’ ability to build and own homes. In a country with substantial deposits of limestone, a major raw material for cement production, nobody should be deceived into thinking that cement is scarce. Where there is significant domestic production capacity, with installed capacity reportedly exceeding domestic consumption, there is no justification for the unusually high price of cement. That is our lived reality in Nigeria.
Why is cement still so expensive in Nigeria? This concern prompted the FCCPC to release its explosive findings, which uncovered a cabal manipulating cement prices in the country.
The FCCPC also uncovered the unusually high retail price of cement in Nigeria compared with other markets, despite the country’s abundant limestone deposits and substantial domestic production capacity. This is where the matter becomes particularly disturbing.
In Egypt, a 50kg bag reportedly sells for about $3.50 to $4.50. In Morocco, it is between $4.20 and $5.10; in Algeria, between $3.80 and $4.60; in Tunisia, between $4.50 and $5.30. In The Gambia, it is about $5.80, while in Rwanda it is between $6.20 and $7.50.
In several other African countries, the prices are even lower: around $2.78 in Congo (Brazzaville), $3 in Ghana, $3.11 in Cameroon, $3.22 in Senegal, $3.33 in Ethiopia, $3.44 in Sierra Leone, $3.56 in Zambia, $3.67 to $4.80 in Tanzania, $3.78 in Zimbabwe and about $3.89 in South Africa. In Benin and Kenya, prices remain at around $5.50 and $5.40 respectively.
In Nigeria, a 50kg bag sells for as much as N15,000 – roughly $11. Who are the major cement manufacturers in Nigeria? They are largely Nigerian companies, owned mostly by Nigerians, who, according to the FCCPC’s latest findings, seem to have no qualms about making exploitative profits, even at the expense of ordinary Nigerians, in a sector as critical as housing. Sad!
If cement price is being deliberately manipulated, Nigerians are not merely paying for an expensive product; they are being forced to pay artificially inflated prices for something essential to their lives. If this is not economic sabotage, nothing else is. And those behind it should not be spared.
Elusive dream
Nigeria’s housing deficit has been estimated at between 14.9 million and 28 million units, depending on the source. The federal government has put the deficit at about 14.9 million units, while some industry stakeholders contend that the figure is considerably higher. I am inclined to believe the industry stakeholders’ figure because, as Otto von Bismarck admonished, I will never believe anything from the government until it is officially denied.
Whatever figure one chooses to believe, there is no dispute that Nigeria has a serious housing problem. Millions of Nigerians, including workers, either lack decent accommodation or spend an unreasonably large share of their income on rent. The dreams of millions of others to build their own homes have remained elusive.
Although several factors, including access to land, mortgage financing, infrastructure, interest rates and the general cost of construction, all contribute to this, the price of cement remains one of the biggest obstacles. It is therefore difficult to explain why a country blessed with substantial limestone deposits and significant cement production capacity should have one of the highest prices for a 50kg bag of cement in Africa.
Way out
Food, rent, school fees and medical bills are major drains on workers’ salaries, rendering successive wage increases ineffective. The government needs to intervene in these critical sectors. Perhaps it would not be out of place to advocate price controls in selected critical areas, including building materials. The government’s decision to allow market forces to determine virtually everything is hurting the economy and adversely affecting ordinary Nigerians. Health, housing, education and agriculture/food security should not be left to market forces. No.
As for the cement cabal, the FCCPC deserves commendation for raising this issue and, more importantly, for undertaking the investigations. Beyond the investigations, those manipulating cement prices must be named, and the mechanisms they use should be exposed. Where violations of the law are established, appropriate sanctions should follow.
Create Ranches In Sambisa
Sambisa Forest, long used as a hideout by terrorists who have made life brutish for Nigerians, offers a fitting example of the time-tested saying that even a spoilt watch tells the correct time once a day. It is time to look at Sambisa differently.
How could we have a piece of land of about 66,000 square kilometres, roughly the size of Togo, and still be wondering where to establish cattle ranches for the millions of herders in Nigeria? With the Middle Belt Forum opposing the use of land in north-central states for ranching, the federal government should settle on Sambisa.
By Muazu Elazeh