Cement Dealers, Experts Predict New Prices For Dangote, BUA, Others For July, August

• Cement dealers and experts have projected that prices may remain slightly elevated due to high demand and logistics challenges
• They said  the leading cement manufacturers, such as Dangote, BUA, and Lafarge Africa, are expected to position themselves for strong competition
• However, they said Dangote may reduce its prices to N8,700 per 50kg bag, which might spark strong competition from other producers

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Market watchers and dealers in Nigeria have said cement prices will remain elevated and may see some slight upward pressure between July and August.

This is caused by persistent demand from ongoing construction projects and lingering operational challenges facing manufacturers.

Dangote Cement

According to them, while leading manufacturers such as BUA, Dangote, and Lafarge try to optimise products and manage costs, other economic factors could cause price increases.

Osas Igho, an economist and top cement dealer in Lagos, said Dangote Cement, as the market leader, will likely continue to sell cement at premium prices.

He said the company’s extensive distribution network and strong brand trust among consumers give it an edge and a strong market position.

According to him, Dangote Cement prices are likely to see a significant reduction despite high operational costs.

“Their focus on increasing production capacity and utilising alternative fuels (like CNG trucks) might provide some long-term price stability, but the immediate two-month outlook suggests steady to slightly increasing prices,” he said. 

Current prices range from N9,000 - N10,000 per 50kg bag, potentially reaching N10,500 - N11,000 in some urban areas.

BUA Cement

Igho said that BUA Cement is also expected to maintain high prices. Their strong Q1 2025 earnings and improved margins show effective cost discipline.

Legit.ng reported that BUA Cement has been a part of talks to freeze prices for federal government projects, which might increase some pressure for large-scale government projects.

However, retail consumers should anticipate prices similar to or slightly below Dangote, currently ranging from N8,700 - N9,800, potentially moving towards N10,000 in certain regions.

Lafarge Africa (WAPCO)

Like BUA Cement, Lafarge’s robust Q1 2025 performance, driven by increased production and competitive pricing, shows they also maintain their current cement pricing formula.

The company’s efforts to reduce finance costs and improve product efficiency are positive.

However, Igho said these factors are likely to stabilise their profit margins instead of reducing consumer prices in the short term.

He said that Lafarge's prices are currently around N8,500 - N9,500, and a slight increase to N9,800 - N10,300 is possible in some areas.

Consumer price sensitivity remains high 

Nigerian consumers, both individual builders and small to medium-sized contractors, are highly price-sensitive. While quality and brand trust (especially for Dangote) play a role, the significant increase in cement prices has pushed many to prioritise the most affordable option available, financial analyst Ishaya Ibrahim said.

According to him, large contractors and developers will continue to seek bulk purchases to leverage wholesale discounts, which can reduce the price per bag cost.

He said this consumer behaviour is expected to increase as individuals and small businesses postpone non-essential building activities due to budgetary challenges. 

“Beyond price, factors like immediate availability and proximity to distributors will continue to influence customer choices, especially for urgent construction needs, as transportation costs remain a significant component of the final price. Customers are likely to patronise distributors closer to their project sites to minimise logistics expenses,” he said.

Mangal Cement begins distribution

Legit.ng previously reported that barely one year since commencing operations in Nigeria, Mangal Cement has taken strategic steps to solidify its place and announce its presence as a top player in the industry.

The company held its annual stakeholders’ engagement forum in Asaba in Delta State.

Mangal Cement’s general manager for sales and marketing for Delta and Anambra, Goriola Omowunmi, said the engagement is an essential step in boosting collaboration with critical stakeholders in the region.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng