LATEST UPDATE On Cement Emerges; SEE Price List Of Dangote, BUA, Lafarge Bags Of Cement Despite Tinubu’s Intervention
The Nigerian market continues to grapple with the exorbitant price of cement, with a 50kg bag still selling for an average of N12, 000. This is in direct defiance of the intervention by the federal government, which threatened to open doors for importation if manufacturers did not reduce their prices. According to a recent market survey conducted by BusinessDay, Dangote Cement, the leading brand in the market, sells for N12, 500 per bag. Lafarge, on the other hand, sells its cement for prices ranging from N12, 000 to N14, 000 per bag. BUA, considered the cheapest brand, sells for between N10, 000 and N11, 000 per bag. Other brands like Ibeto Cement and United Cement Company of Nigeria Limited (UniCem) are also selling for N10, 000 and N11, 000, and N12, 000 to N14, 000 respectively.
These skyrocketing prices have plunged Nigeria’ s real estate, especially the housing sector, into a period of uncertainty and distress. Many developers have been forced to abandon their project sites, while construction. activities at other sites have slowed significantly. To address the issue, the federal government convened a meeting with major cement producers and other stakeholders. They reached an agreement to peg the price of cement at N7, 000 to N8, 000 per bag, depending on the location of the buyer and the buyer’s circumstances.
However, the Minister of Housing and Urban Development, Ahmed Dangiwa, expressed his lack of understanding regarding the justification for the price increase. During the meeting, the manufacturers cited several challenges, including the high cost of gas and high import duties on spare parts. They also highlighted poor road networks, high foreign exchange rates, and cement smuggling to neighboring countries as additional obstacles. The manufacturers. insisted that addressing these challenges was crucial in order to bring down the price of cement.
In a separate meeting with cement manufacturers and other building materials producers, Minister Dangiwa expressed his dismay over the high cost of building materials despite the abundance of raw materials in the country. He specifically questioned the disproportionate increase in the price of cement, especially considering that the
manufacturers source all their raw
materials locally. It is disheartening to
see how much Nigerians have to pay for essential building commodities like cement, with prices rising almost on a daily basis. I don’t understand the reason for this increase, and it is not acceptable,” said Dangiwa.
He went on to warn that if the manufacturers failed to lower prices, the government might be compelled to open the borders for cement importation. Dangiwa expressed concern that the country had witnessed a significant increase in the prices of cement and other building materials in recent
months, which posed a crisis for housing
delivery.
The rising price of cement has left many
Nigerians perplexed. In just a few months, the cost of cement has Increased from between N5, 000 and N6, 000 in January to the current range of N10, 000 to N14, 000. Vincent Ogili, a civil engineer supervising a building project, expressed his frustration over the sudden surge in input costs, which has led to a hold on his project. The current scarcity and high price of cement. in the market is quite inexplicable and incomprehensible to even the most discerning minds outside the product production circle, Ogill remarked. He also noted that the price of gas alone didnot justify the significant price jump. As the government and manufacturers continue to grapple with finding a solution to the high cost of cement, it is evident that urgent measures need to be taken. The housing sector, a vital component of the economy, cannot afford to bear the burden of these incessant price hikes. It is crucial for stakeholders to work together to address the challenges faced by cement manufacturers and ensure that affordable cement is readily accessible to all Nigerians. Only then can the country achieve sustainable growth and development in the construction
Industry.
(Legit)
