Spiraling inflation in Nigeria has been identified as a critical factor spurring the cement price to an increase of 100 percent in three years to a record high of N7000
Findings showed that the prices of cement ranged between N3,300 and N3,500 in Lagos and Ogun States in March 2021 but have jumped to between N6,500 and N7,000 in both states as of last week.
Devakumar Edwin, Dangote Cement’s group executive director in charge of Strategy, Portfolio Development, and Capital Projects, had in 2021 attributed the high cost of cement in Nigeria to the global rise in demand for cement as a result of the COVID-19 crisis.
“Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings,”
Recall that in 2022, the Block and Concrete Producers Association, Enugu State chapter, decried the continuous increase in the prices of cement and other materials used for block production.
In 2023, the Cement Producers Association of Nigeria warned that the ongoing plan of the Federal Government to introduce concrete roads will raise the price of cement to N9,000 per bag from the current price of N5,000.
They also called on the current administration, in a statement, to permanently address the perennial cement price hike problem by facilitating larger participation in the cement industry, noting that Nigerians had no business buying cement for more than N5,600 per bag.
The statement read in part, “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season.
“Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps.