Soaring Cement Prices in Nigeria: 50kg Bag Now Costs Up to ₦10,000, Sparking Concerns Across Construction Sector
The price of cement in Nigeria continues its steep rise, with a standard 50kg bag now averaging around ₦8,800 nationwide, and in some regions, reaching as high as ₦10,000. This sustained price hike, which has persisted over the past six to eight months, is causing growing concern for individual homebuilders and the broader construction industry alike. The impact is widely felt, as high cement costs directly affect housing affordability and construction project costs across the country.
Earlier in the year, in response to public outcry, the House of Representatives called upon key cement manufacturers—such as Dangote Cement and BUA Cement—to address the sharp price increase. Lawmakers raised serious concerns about alleged exploitation within the cement industry, citing factors like exchange rate fluctuations, market power abuses, and potential price manipulation by the few dominant players in the sector. However, despite these interventions, cement prices have largely remained high, placing an immense burden on Nigerians seeking affordable building materials.
Key Factors Behind Rising Cement Prices
Industry analysts have pointed to a range of economic and structural factors contributing to the persistently high cost of cement:
- Exchange Rate Volatility: The naira’s depreciation against the U.S. dollar has driven up the cost of essential imported raw materials, making cement production more expensive and affecting final product prices.
- High Transportation Costs: Nigeria’s poor road infrastructure and the recent increases in fuel prices have added to distribution costs, which manufacturers pass on to consumers, further inflating cement prices.
- Limited Competition: Nigeria’s cement market is dominated by a handful of major companies, leading to monopolistic practices. Limited competition allows companies to exert significant control over pricing, with little pressure to lower costs.
- High Demand Due to Population Growth: Rapid population growth and urbanization have kept demand for cement high, particularly in urban centers where housing demand is intense, further straining supply and contributing to price increases.
These factors collectively paint a challenging picture for those hoping to build or invest in property. The high cost of cement is not only making individual homebuilding projects difficult but is also slowing growth in Nigeria’s real estate sector and driving up the cost of commercial construction.
Current Cement Prices from Leading Brands
Amid this price surge, here is a snapshot of current retail prices for various cement brands in Nigeria as of this week:
- Dangote Cement: The price of a 50kg bag of Dangote Cement is currently around ₦8,600, though this may vary by region.
- BUA Cement: Retailing at an average of ₦8,000 per 50kg bag, BUA Cement remains a popular option for many builders.
- POP White Cement (Plaster Cement): This type of cement, often used for plastering and finishing, is priced at approximately ₦7,900.
- Lafarge Cement: The Lafarge Waterproof Cement retails for ₦10,500, with premium options like the Water Shield High-Quality Waterproof Cement going up to ₦12,000 per 50kg bag.
As Nigeria grapples with this high-cost cement market, there is a strong push from citizens and stakeholders alike for government intervention to stabilize prices. Affordable construction materials are critical to meeting housing needs, improving living conditions, and fostering economic growth. Many Nigerians are hopeful that sustainable solutions can be implemented to curb price hikes, increase market competition, and improve infrastructure to ease transportation costs—steps that could help make cement more accessible for all.
