Nigeria’s cement prices remain among the highest in Africa despite the country’s annual production capacity exceeding 60 million metric tonnes and local demand standing at about half that figure.
A 50kg bag is currently selling between N12,500 and N15,000 in major cities, far above prices in countries such as South Africa, Egypt, Kenya and Ghana, where cement is generally more affordable.
The News Chronicle reports that industry leaders blame the high cost to rising energy prices, expensive logistics, naira depreciation, inflation and the heavy reliance on imported machinery and production materials.
They also argue that transporting cement across the country accounts for a significant share of the final retail price, while strong demand from housing and infrastructure projects continues to support current market rates.
Nigeria’s cement industry is led by Dangote Cement, BUA Cement and HBM Nigeria Plc, with more factories expected to raise national production capacity to about 85 million metric tonnes in the coming years.
However, stakeholders insist increased competition, improved transport infrastructure, stable electricity, better foreign exchange access and stronger market oversight are needed to bring prices down.
The Federal Government has also pledged to engage cement manufacturers as concerns grow over the impact of rising costs on housing delivery and public infrastructure projects.
