Nigerian cement prices rise by 30%

Nigerian cement prices rise by 30%
05 February 2024

Cement prices in Nigeria have risen by 30 per cent in the last few days, reaching NGN6500 (US$5.44)/bag in some regions, reports The Guardian. The ripple effect across other building materials is already being seen with sandcrete blocks going up in price from NGN450 to NGN500 for a six inch block, while nine-inch blocks have increased from NGN550 to NGN600/block. The price of ready-mixed concrete has also risen, causing some constriction projects to come to a standstill.

A number of developments have been blamed for the price hike, including disruptions in gas supplies, the rising cost of automotive gasoline oil, which has advanced from NGN800/l to NGN1300/l, and the inability by cement manufacturers to access foreign exchange.

“Frequent increase in building materials is bad to the economy. This is going to create a crisis in the construction sector and bad blood between clients and contractors, as developers will make claims for fluctuations,” warned Kunle Awobodu, past president of the Nigerian Institute of Building, “Invariably, it will lead to upward reviews of contract sums. New and on-going projects will be delayed until there is agreement on the contract variations. It can also expedite construction activities because of the anticipation of further increase.”

The Building Collapse Prevention Guild has appealed to the Nigerian president, Bola Tinubu, to intervene and prevent rising cement prices, saying, “Completion of ongoing building projects might be jeopardised by the impending hike in the price of cement. Buildings abandoned during the process of construction aggravate the risk of building collapse.”

Published under Cement News

Tagged Under: Nigeria West Africa Prices