Nigerians Groan as Cement Price Hits New High in 6 Days as Inflation Rises to Highest in 17 Years
- Cement price rose to a new high of between N9,000 and N9,500 per 50kg bag in some parts of Nigeria
- Findings revealed that the price hike cuts across manufacturers, despite a price slash by one of the manufacturers
- BUA Group chairman, Abdul Samad Rabiu, recently announced a slash in the price of the commodity to about N3,500
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
In just a week, the price of a 50kg bag of cement has risen to about N9,500 in many parts of Lagos and around the country, primarily caused by the biting effect of inflation.
Findings show that in many parts of the country, the price of building materials has recently been steadily rising from N6,000 to N6,500 to over N9,000.
Source: UGC
Cement retailers unaware as depot prices rise
The Guardian reports that the cement price rose to N8,000 in Benue state as many builders were unaware of the sudden price change.
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The periodic increase in the product's price has made retailers halt sales, fearing that manufacturers might increase prices soon.
Findings by Legit.ng showed that cement price has hit N10,000 in the South East.
Retailers complain that some manufacturers have increased their depot prices to a new high following the general hike in prices of things.
One of the distributors in Umuapu in Ohaji/Egbema, a local government of Imo State, told our reporter that the product price rose because producers increased their depot prices, adding to the high cost of transportation.
"We have seen in the last few months that the product's price has steadily risen, and people, especially developers, find it hard to cope.
"So, each time we go to depots, we meet new prices, and everything is tiring. Those who have old stocks have either hiked their prices or stopped selling to monitor events," he said.
Prices cut across manufacturers
Checks by the reporter also show that in some parts of Lagos, the product price goes between N9,000 and N9,500, depending on the location.
When asked about the recent price slash by one of the biggest manufacturers, BUA Cement, retailers say that the slash only happened in the press and is yet to be reflected.
According to reports, the recent increase cuts across manufacturers reportedly battling inflation, high business costs, and FX scarcity.
BUA Cement price slash is not effective
However, findings show that BUA Cement sells for N9,000 while Elephant Cement is sold for N9,500 in some shops.
Nigerians are worried that after BUA Group Chairman Abdul Samad Rabiu announced a slash in price, putting it at N3,500 per bag, the product will be sold higher than before the reported price slash.
The development comes as Nigeria's headline inflation for January 2024 rose to a 17-year high of 29.90%, caused mainly by food inflation.
Analysts project that Nigerians will battle the worst inflation in the coming months.
Nigerians groan as cement price skyrockets
Legit.ng reported that there has been a significant surge in the retail price of cement in Nigeria in just over two months.
Formerly N5,000 per bag in December 2023, the cost has escalated to N6,500 in different parts of the country.
Investigations reveal that the Cement Manufacturers Association of Nigeria (CMAN) has increased prices by over N1,000 per bag for respective brands.
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Source: Legit.ng
