Federal Government Introduces New Policy Guidelines for Road Construction, Cement Prices drop to N7,500, and more…
Federal Government Introduces New Policy Guidelines for Road Construction
The Federal Ministry of Works has introduced a set of new policies aimed at transforming road construction in Nigeria. These policies, unveiled by the Minister of Works, Senator David Umahi, are intended to address the slow pace of work and extend the lifespan of federal roads.
According to a policy document shared with journalists on Friday by Uchenna Orji, the Special Adviser to the Minister on Media, the new measures include the adoption of rigid pavements, limiting contractors' claims for price variations, removing the consumer price index from contracts, and standardizing pricing across different zones.
Additional policies introduced by the Ministry include enhanced supervision of ongoing projects, the introduction of whistle-blowing mechanisms for substandard work, prioritization of projects within key economic corridors, and the requirement to complete one carriageway before starting the second in dualized road projects.
The Ministry has also collaborated with the Ministry of Steel Development to revitalize the Ajaokuta Steel Company, established the Renewed Hope Infrastructure Development Fund, and initiated the second phase of the Highway Development Management Initiative.
Cement Prices drop to N7,500 in 6 Months Due to slow construction activities
The cement market in Nigeria has seen relative stability, with prices moderating at an average of N7,500 per 50kg bag over the past six to eight months. Despite criticisms directed at major manufacturers like Dangote, BUA, and Lafarge for maintaining prices at this level—making cement less affordable and hindering construction sector activities—this price point has remained steady.
A recent market survey across various locations indicates that this stability is largely due to low demand and a slowdown in construction activities, which have been affected by inflation and an unstable local currency exchange rate.
Industry observers are optimistic that this price stability could encourage increased construction activities, allowing investors to plan with more certainty. This is a marked contrast to the volatility seen in the second half of 2023, when cement prices surged dramatically from N5,000 to as high as N14,000 per bag.
The survey also revealed similar trends for iron rods, also known as reinforcement, which experienced a price hike following the removal of fuel subsidies and the federal government's decision to float the naira.
FG to remove tax on house rents, public transports, others – Taiwo Oyedele
Taiwo Oyedele, chairman of the presidential committee on fiscal policy, announced that the committee has recommended to the federal government the removal of taxes on essential goods and services such as food, public transportation, and housing. These recommendations aim to ease the financial burden on Nigerians by eliminating taxes on critical necessities.
Oyedele disclosed this during an interview with Channels TV in Abuja on Monday. He highlighted that the proposal includes the removal of value-added tax (VAT) on these essential items. According to him, the plan will soon be approved by President Tinubu and forwarded to the National Assembly for inclusion in the country's tax laws.
"We’ve identified key necessities—food, housing, transportation, education, and healthcare—and proposed removing almost all taxes on them, including VAT," Oyedele explained. "This is to make these basic needs more affordable for Nigerians. Shared public transportation will be entirely tax-free. However, if you hire a taxi, taxes will apply, as it's assumed you’re not among the poorest. But if you take a bus, it will be tax-free."
FHA Takes Action Against Unauthorized Buildings in Lagos and Abuja
The Federal Housing Authority (FHA) has revealed plans to tackle unauthorized buildings and irregular property developments in Lagos State and the Federal Capital Territory (FCT) as part of a broader effort to enforce its building regulations. This initiative will impact several estates in both regions, aiming to ensure compliance with approved standards.
In a statement released on Thursday, the FHA announced that it would begin the process of regularizing property documents for allottees who have constructed buildings without proper approval or altered original plans.
The statement explained, "This exercise is designed to give allottees in FHA estates, who built without approval, modified structures beyond granted approval, annexed land without permission, altered prototype houses, deviated from approved building plans, or made unapproved mergers and subdivisions, the chance to regularize their property documents."