Nigerians are currently lamenting the way cement prices across brands and markets have hiked in recent times. Just over two months, there has been a significant surge in the retail price of cement in Nigeria. Formerly N5,000 per bag in December 2023, the cost has escalated to N6,500 in different parts of the country.
Reports, reveal that the Cement Manufacturers Association of Nigeria (CMAN) has increased prices by over N1,000 per bag for respective brands.
As a result, retail prices have surged to N6,200 or higher in Lagos and the Southwest, while in the Southeast and Abuja, they have surged to as much as N6,500 or even more.
According to reports, the cement industry in Nigeria is primarily dominated by three key players. Leading the pack is Dangote Cement Plc, which holds a commanding 60.6% market share. Dangote Cement has an impressive local installed capacity of 29.3 million MT.
Following closely behind is Lafarge Africa Plc, with a 21.8% market share and a production capacity of 10.5 million MT. Completing the trio is BUA Group, accounting for 17.6% of the market share.
The latest changes in the market have affected the pricing of concrete blocks significantly.
Manufacturers have responded by revising their prices, resulting in an increase in the cost of a six-inch block from N450 to N500 and a rise in the price of a nine-inch block from N550 to N600 per unit. Moreover, there has been a notable uptick in the price of ready-mix concrete, and the expenses related to in-situ concrete production are anticipated to increase substantially. This surge in costs is expected to worsen the economic challenges, leading to higher prices for new homes, elevated rental rates, and increased maintenance costs.
Last year, Abdulsamad Rabiu, the chairman of BUA Group, announced a reduction in the cost of a bag of BUA cement from N5,000 to N3,500. While the announcement was well received, many Nigerians quickly mounted pressure on Dangote Cement to also do the same, but the company declined, insisting that its product sold for far less than in other African countries.
Micah Akinloye, PRO of Akerele Block Manufacturers Association, expressed concern over the persistent increase in cement prices, highlighting its adverse impact on association members’ 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”.
