Business

Dangote, BUA, Lafarge Bag Of Cement Prices As Of January 31

By Benjamin Abioye

Published

4 weeks ago

January 31, 2025

Benjamin Abioye

The price of cement in Nigeria has surged significantly, with a 50kg bag now costing around ₦10,000 as of January 31, 2025.

This price increase has raised concerns in the construction sector, as it has become more expensive for builders to procure cement. The National Association of Block Moulders of Nigeria (NABMON) is especially worried, with their president, Adesegun Banjoko, pointing out that buying 100 bags at this price would total ₦1 million, a considerable burden for the industry.

Banjoko has called for increased local cement production to help reduce costs and stimulate competition. He emphasized that the current price hike could be mitigated by fostering more competition among cement manufacturers. Stakeholders also believe that the government should create policies that encourage the opening of additional cement manufacturing plants, which could help make cement more affordable for both private and public construction projects.

Although Nigeria is Africa’s largest cement producer, with a production capacity of 65.6 million tonnes annually, the industry faces challenges. Low capacity utilization—around 50%—and issues with power supply and production costs contribute to the high prices. These problems continue to drive up retail cement prices.

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To stabilize prices, there have been discussions about importing quality cement in the short term to balance supply and demand. Stakeholders are also advocating for government incentives that would encourage the growth of local manufacturing plants. This strategy would not only address Nigeria’s increasing domestic demand but could also serve neighboring countries.

The escalating cost of cement has become a significant issue for the construction industry and the broader economy. Industry experts believe that a joint effort from both the government and the private sector is essential to resolve these challenges and ensure the availability of affordable building materials for Nigerians.