In recent weeks, the cost of a 50kg bag of cement has surged to approximately N9,500 at various retail outlets in Lagos, marking a significant increase from the previous range of N6,000 to N6,500 observed since January.
Ogunwatch’s investigation reveals a widespread uptick in prices, with some retailers opting to cease sales due to apprehensions about potential future hikes. Notably, a few Lagos-based retailers are still offering cement at a relatively lower price of N8,000.
This price surge seems to affect major cement producers in Nigeria, with Dangote Cement averaging N9,500, BUA at N9,000, and Elephant Cement also commanding N9,500 in certain stores.
Despite promises made in October 2023 by BUA Chairman, Abdulsamad Rabiu, during a meeting with President Bola Ahmed Tinubu to peg the price at N3,500, current market realities indicate a stark contrast.
Moreover, the Cement Producers Association of Nigeria had forewarned in early 2023 that the Federal Government’s plan to introduce concrete roads could drive up cement prices to N9,000 per bag from the existing N5,000. This development underscores the industry’s challenges and the implications for both retailers and consumers.