Cement Prices in Nigeria Surge to ₦10,000 Per Bag, Raising Industry Concerns
As of January 31, 2025, the price of cement in Nigeria has soared to approximately ₦10,000 per 50kg bag, marking a sharp increase in recent years. This rise has sparked concern among industry stakeholders, particularly the National Association of Block Moulders of Nigeria (NABMON), which has warned of the financial strain on construction businesses.
Industry Stakeholders Raise Alarm
NABMON’s National President, Adesegun Banjoko, expressed deep concern over the pricing trend, emphasizing the impact on builders and developers. He pointed out that purchasing 100 bags of cement now costs around ₦1 million, making it increasingly difficult for businesses and individuals to afford construction materials.
Banjoko urged for an increase in local production to foster competition and help stabilize the market. Industry experts agree that expanding cement manufacturing in Nigeria could be key to controlling prices and ensuring affordability for both private and public construction projects.
Challenges Facing the Cement Industry
Despite Nigeria’s status as Africa’s largest cement producer, with an estimated production capacity of 65.6 million tonnes per annum, several challenges hinder price stability:
- Low Capacity Utilization: The sector operates at about 50% capacity, limiting supply.
- Power Supply Issues: High energy costs drive up production expenses.
- Logistics and Distribution: Inefficiencies in transportation further increase retail prices.
Possible Solutions to Stabilize Prices
To address the soaring costs, stakeholders have proposed various solutions, including:
- Short-Term Cement Importation – Some experts suggest allowing temporary imports of quality cement to stabilize supply and demand.
- Government Incentives for New Plants – Encouraging the establishment of additional manufacturing plants could enhance competition and lower prices.
- Improving Infrastructure and Power Supply – Addressing key operational challenges would help manufacturers reduce production costs.
The continuous rise in cement prices poses a significant threat to Nigeria’s construction industry and broader economy, impacting housing affordability and infrastructure development.
Current Cement Prices in Nigeria (Per 50kg Bag)
| Brand | Price Range (₦) |
|---|---|
| Dangote Cement | ₦9,900 – ₦10,500 |
| BUA Cement | ₦8,000 – ₦11,000 |
| Lafarge Cement | ₦9,100 – ₦10,500 |
| UNICEM Cement | ₦11,500 – ₦13,500 |
| Ibeto Cement | ₦9,500 – ₦10,500 |
Conclusion
With cement prices continuing to climb, it is crucial for the government and industry players to collaborate on sustainable solutions. Increasing production capacity, addressing infrastructure challenges, and fostering a competitive market could help ease the burden on Nigeria’s construction sector and make housing more accessible for the population.
