Dangote, BUA, Lafarge Cement Prices Update Today, 28th February 2024: Nigerian Market Struggles with Soaring Costs

The cost of cement in the Nigerian market remains exceptionally high, with a 50kg bag still priced at an average of N12,000, despite federal government intervention threats to allow imports if manufacturers don’t reduce prices.

According to a BusinessDay survey, Dangote Cement sells for N12,500, Lafarge between N12,000 and N14,000, and BUA at N10,000 to N11,000 per bag. Ibeto Cement and UniCem range from N10,000 to N14,000. The federal government had met with cement producers, agreeing to peg prices between N7,000 and N8,000, dependent on location and buyer.

Manufacturers attribute the high prices to challenges such as costly gas, high import duties on spare parts, poor road networks, high foreign exchange rates, and cement smuggling to neighboring nations. The Minister of Housing and Urban Development, Ahmed Dangiwa, expressed dissatisfaction, citing the abundance of raw materials locally.

Dangiwa warned of potential border opening for cement importation if prices don’t decrease, expressing concern over the alarming increase in cement and building material prices. Many Nigerians are baffled by the rising costs, which have doubled from N5,000-N6,000 in January to N10,000-N14,000. Vincent Ogili, a civil engineer, questioned the abrupt change and suggested revisiting the 2002 backward integration policy in the cement industry.

Ogili highlighted Nigeria’s substantial cement industry, driven by infrastructure projects, private retail, and real estate sectors. He urged a review of the 2002 policy that significantly increased annual production capacity, emphasizing the current strain on domestic supply.

RELATED: Dangote, BUA, and Lafarge Cement Price Update Today 26th February 2024

The surge in cement prices has dealt a severe blow to Nigeria’s real estate, particularly the housing sector, leading to project delays and a slowdown in construction activities. Developers are grappling with the uncertainty caused by the exorbitant costs of essential building materials.

In response to the manufacturers’ cited challenges, including high gas costs and import duties, Minister Dangiwa emphasized that local sourcing of raw materials should naturally lead to lower prices. The minister expressed concern about the implications for housing delivery, noting that escalating building material costs invariably translate to increased house prices, worsening the housing crisis.

As the government considers the possibility of opening borders for cement importation, it reflects a broader dilemma in balancing the interests of domestic industries and the need for affordability in critical sectors like housing. The 2002 backward integration policy, which significantly expanded production capacity, is now under scrutiny as stakeholders call for a reassessment to address the current supply-demand gap.

READ ALSO: Latest Cement Price Update Today, 25th February 2024

The situation underscores the intricate web of factors influencing the cost of construction materials, including infrastructure development, foreign exchange rates, and smuggling. The need for a comprehensive strategy to address these challenges is apparent, as Nigeria’s cement sector plays a pivotal role in meeting the demands of a growing population and advancing economic development.

While the government and manufacturers grapple with finding a solution, ordinary Nigerians, like Vincent Ogili and numerous others, bear the brunt of the abrupt and significant price hikes. The ongoing dialogue between stakeholders becomes crucial in charting a path forward that ensures the sustainability and affordability of crucial building materials, particularly cement, in the country’s dynamic construction landscape.

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