The price of a 50kg bag of cement has spiked at NGN2800 (US$18.80) in spite of efforts by industry to increase production capacity and improve domestic supply, according to a market survey carried out by Nigerian paper Sunday Business.
The continuing tight supply-demand balance combined with the high cost of electricity in Nigeria, are reported to be the main reasons for this latest hike in cement prices.
Robust demand has resulted in shortages of cement, pushing prices far above the previous price level of NGN1600 (US$10.40) per bag.
According to the survey a bag was being sold for NGN2800 in some areas of Ojodu, Berger, Isheri, and Sabo in Lagos while some retailers in Alagbole, Akute, Olambe, Oshere and Matogun areas of Ifo Local Government Area of Ogun State, sold a bag for as much as NGN3000.
However, cement sold direct from producer sales depots, including Lafrage/WAPCO Cement Pl in Lagos, continued to sell at the old price of NGN1600 per bag, suggesting the majority of price inflation was being imposed by retailers rather than producers.