The cost of cement in Nigeria continues to fluctuate, with major brands witnessing varying price points across different regions.
As of this week, market analysis shows that:
– Dangote Cement sells for around ₦8,500 per 50kg bag
– BUA Cement is available at ₦8,000 per 50kg bag
– Lafarge Cement (Unicem) is priced at ₦9,500 per 50kg bag
– Elephant Supaset Portland Limestone Cement is the most expensive, retailing at ₦10,000 per 50kg bag
Why Cement Prices Are Rising
Despite previous government assurances of price stabilization, cement costs have remained volatile, driven by several factors:
1. High Production Costs
Cement manufacturers continue to face challenges related to the rising cost of energy, logistics, and raw materials. The increased price of gas, diesel, and electricity tariffs has directly impacted cement production costs, forcing manufacturers to adjust prices.
2. Transportation and Distribution Costs
With the high cost of fuel and diesel, transportation expenses for cement distribution across the country have skyrocketed. This has significantly affected cement prices in states farther from production plants, such as the South-East and North-East regions.
3. Foreign Exchange Challenges
Nigeria’s foreign exchange crisis has also played a role in the price surge. Since some cement production inputs are imported, the devaluation of the naira against the US dollar has driven up costs, affecting the final market price.
4. Market Demand and Speculation
With Nigeria’s growing demand for housing and infrastructure projects, demand for cement remains high. Additionally, speculation by distributors has worsened price hikes, as some retailers hoard cement to sell at higher rates.
Regional Price Variations
The price of cement differs depending on the region. In some Northern states, cement is reportedly selling for as high as ₦10,500 per bag, while in Lagos and Ogun states, prices are relatively stable at around ₦8,000–₦9,500 per bag.
In the South-East and South-South, cement is selling between ₦9,500 and ₦11,000, owing to higher logistics costs.
