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Enioluwa Adeniyi
Guest
As of 2024, the price of cement in Nigeria has been a subject of significant concern for consumers and stakeholders in the construction industry.
Over the past few years, the price of cement has seen several fluctuations, primarily driven by factors such as inflation, foreign exchange rates, production costs, and the general economic environment in Nigeria.
The price of a 50kg bag of cement in Nigeria currently ranges between ₦7,000 and ₦7,500, depending on the brand and location.
However, in some areas, prices have been reported as high as ₦8,000 per bag.
The price varies from one region to another, with prices typically higher in northern Nigeria due to logistics and transportation costs.
Factors Driving the Price Increase
1. Cost of Production: The cement industry is heavily dependent on raw materials such as limestone, gypsum, and other additives, many of which are sourced locally but processed with machinery that requires a steady supply of power. Given Nigeria’s ongoing challenges with electricity supply, many cement producers rely on diesel-powered generators, further driving up production costs due to the fluctuating price of diesel.
2. Exchange Rates: The depreciation of the Nigerian naira against major currencies, particularly the U.S. dollar, has had a significant impact on the cost of imported machinery, spare parts, and other production inputs. This has resulted in increased operational costs for cement manufacturers.
3. Inflation: The overall inflation rate in Nigeria, which has been on the rise, contributes to the general increase in prices across all sectors, including construction materials like cement. The inflationary pressure has affected the purchasing power of consumers, making cement relatively more expensive.
4. Demand and Supply Dynamics: Nigeria’s growing population and rapid urbanization have driven up demand for housing and infrastructure development, increasing the demand for cement. However, supply has not always kept pace with this demand, leading to price hikes.
5. Government Policies: Changes in government policies, including tariffs on imported cement and incentives for local production, have also affected the price dynamics. The push for self-sufficiency in cement production has seen major players like Dangote Cement, BUA Cement, and Lafarge Cement ramp up local production, but these expansions come with significant capital investments, which are often passed on to consumers.
Here are the price of major producers of cement this week:
Price Of Dangote Cement
The current price of Dangote cement varies from ₦7,000 to ₦8,000 per 50kg bag, depending on the location.
Price Of BUA Cement
The retail price of BUA cement in Nigeria is between ₦7,500 to ₦7,000.
Price Of POP Cement
Pop White Cement or Plaster Cement – ₦10,000
Price Of Lafarge Cement
A bag sells for ₦8,000
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