The retail price of cement in Nigeria has skyrocketed to N13,000 per bag in several regions, deepening the housing crisis and drawing widespread lament from Nigerians. Formerly priced at N5,000 per bag in December 2023, the cost has more than doubled, with Lagos and the Southwest seeing prices of N12,000 or higher, while the Southeast and Abuja record costs of up to N13,000 or more. Investigations indicate that the Cement Manufacturers Association of Nigeria (CMAN) has increased prices across brands.
Major Cement Producers Dominate the Market
The cement industry in Nigeria is dominated by three key players. Dangote Cement Plc leads with a 60.6% market share and a local installed capacity of 29.3 million metric tonnes. Lafarge Africa Plc holds 21.8% of the market with a capacity of 10.5 million MT, while BUA Group accounts for 17.6% of the market share. These producers have collectively raised prices, impacting downstream sectors.
Cost of Blocks and Concrete Rises
The surge in cement prices has significantly affected the pricing of concrete blocks. Manufacturers have revised their prices, increasing the cost of a six-inch block from N550 to N600 and a nine-inch block from N600 to N700 per unit. Additionally, the price of ready-mix concrete has risen, and expenses for in-situ concrete production are expected to increase substantially. This surge is anticipated to worsen economic challenges, leading to higher costs for new homes, elevated rental rates, and increased maintenance expenses.
Stakeholders and Consumers Lament
The price hike has generated serious concern among retailers, builders, block moulders, and average consumers. Speaking with Legit.ng, Micah Akinloye, PRO of Akerele Block Manufacturers Association, expressed concern over the persistent increase, highlighting its adverse impact on production output and income. He said: "Cement prices have become so expensive and it is affecting how much we can make from the production of blocks. This has also affected how lucrative block production used to be. Because the hike in cement prices and every other building materials in the market, patronage has become very low." Akinloye appealed to the Federal Government to intervene by issuing additional licenses to industrialists for cement production.
Previous Warnings and Calls for Intervention
In 2023, the Cement Producers Association of Nigeria cautioned about the Federal Government's proposal to implement concrete roads, forecasting a potential increase in cement price to N9,000 per bag from the then N5,000 price. They urged the administration to take decisive action to resolve recurrent price hikes by promoting wider industry involvement, emphasizing that Nigerians should not pay more than N5,600 per bag. In related news, the Lagos Chapter of the Nigerian Institute of Building has called on the federal government to intervene and lower cement prices, attributing the skyrocketing costs to poor foreign exchange rates that have taken a toll on producers.
