Nigeria: cement prices increase

Nigeria: cement prices increase
12 July 2016

According to The Guardian Nigeria market research, there has been a fluctuating increase in cement prices since May 2016. Previously prices had been reduced by Dangote Cement Plc, the leading producer of cement in the country, with prices dropping from approximately NGN2000 (US$7.08) to NGN1000-1400 (US$3.54-4.96) per 50kg bag. However, bags of cement sell now at up to NGN2000 across all brands.

This return to high prices has slowed housing construction, real estate activities and has increased the prices of other building components, with manufacturers of cement-based materials raising their prices in reaction.

Pastor Timothy Ayo’ola, chairman of Association of Lagos State Block and Concrete Makers/Cement Dealers (LABCOMA), Agege Local Government Zone, said the cost of transportation and off-loading the products has been a significant factor in the recent price increase. Pastor Ayo’ola added that “a tonne of cement is now sold for NGN31,000 from the factory. We learned that it is because of the downturn in the economy that pushed up the price, coupled with the issues of increase in prices of petrol and in virtually everything in the market. Additionally, the challenge in accessing dollar/increase in rate of dollar to Naira also contributed.”

Chairman of the Utility Building Association, Ikeja branch, Alhaji Walizi Awojide, argued that an increase in cement prices could be dangerous as it would encourage the use of cheaper or lower-quality cement, which may lead to more cases of building collapse in the future.

Published under Cement News