Nigerian cement prices soar 100%, sparking concerns over affordability and construction costs

The price of cement in Nigeria has surged by a staggering 100% in just three years, reaching a record high of N7,000 per bag amidst ongoing inflationary pressures. This dramatic increase, documented by NRTC, raises concerns about the impact on affordability and construction costs across the country.

According to NRTC data, the average price of cement in Lagos and Ogun states stood at N3,300-N3,500 in March 2021. By February 2024, however, those prices have jumped to N6,500-N7,000, representing a doubling in cost in less than three years. This significant increase coincides with Nigeria’s ongoing battle with inflation, currently hitting a staggering 28.92% according to the National Bureau of Statistics.

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While attributing the initial price increase in 2021 to the global rise in demand for cement following the COVID-19 pandemic, industry experts remain cautious about the current price surge. Some cite potential factors like rising production costs, logistical challenges, and potential monopolistic practices within the cement industry.

Dangote Cement’s Group Executive Director in charge of Strategy, Portfolio Development, and Capital Projects, Devakumar Edwin, 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,” he said.

This sharp rise in cement price poses a significant challenge for the construction sector, potentially hindering new projects and inflating the cost of ongoing development. Additionally, it raises concerns about the affordability of basic construction materials for individual citizens, potentially impacting homeownership aspirations and essential repairs.