Cement Prices Soar to N13,000 Per Bag as Dangote, BUA Adjust Rates Nationwide, Rent Hikes Loom
- Cement prices in Nigeria have surged to N13,000 per 50kg bag, raising concerns in the construction sector
- Dealers express frustration over frequent price changes disrupting businesses and affecting customers' financial plans
- Experts urge the government to license more importers to foster competition and mitigate rising costs
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerians are once again battling a sharp increase in cement prices as the cost of a 50kg bag has climbed to as high as N13,000 across several parts of the country, raising fresh concerns in the building and construction sector.
The latest hike follows recent price adjustments by major manufacturers, including Dangote Cement and BUA Cement, leaving builders, contractors, landlords, and prospective homeowners struggling to cope with rising costs.
Source: Getty Images
Dealers and distributors who spoke with Legit.ng expressed frustration over the persistent upward review of cement prices, saying the development is becoming unbearable for both businesses and ordinary Nigerians.
Only a few weeks ago, in April, cement was selling for around N12,000 per 50kg bag after leading manufacturers announced new rates.
The latest increase now pushes the price to N13,000 in many markets nationwide.
Dealers lament frequent price changes
Several dealers say the constant changes in prices are disrupting business operations and frustrating customers who had already made financial plans based on previous rates.
One dealer, who spoke anonymously, recounted how he booked 50 bags of cement in January at N11,000 per bag, only to be told months later that he would have to complete payment at the new rate of N13,000 per bag before collection.
“I placed the order early in the year to avoid this kind of problem, but when I returned in May for collection, the distributor insisted I must pay the new price. It became an argument because I had already paid based on the old rate,” he said.
According to him, the sudden adjustment threw his project off balance and forced him to look for additional funds.
Experts call for more import licences
The fresh increase has reignited calls for the federal government to open up the market by licensing more companies to import cement and reduce the dominance of a few major players.
Financial expert Osas Igho said Nigerians should not be left at the mercy of a small number of manufacturers who effectively control pricing in the sector.
“Right now, we cannot be left at the mercy of a few manufacturers who have a monopoly in the sector,” he said during a telephone interview with Legit.ng.
According to him, granting new import licences would create healthy competition and force local producers to review their prices downward.
He argued that the current structure allows a few dominant players to determine prices with little resistance, putting enormous pressure on consumers.
Rising cement costs may trigger rent hikes
Igho warned that the consequences of the latest cement price increase will go beyond construction sites and directly affect millions of Nigerians through rising housing costs.
He explained that landlords are likely to increase rents to offset the higher cost of repairs, renovations, and building maintenance.
Source: Getty Images
“Nigerians should brace for rent reviews by landlords because the cost of repairs and remodelling will spike. Also, the price will jeopardise the chances of Nigerians owning their own homes,” he said.
With housing already becoming increasingly unaffordable, many fear the fresh cement price surge could worsen Nigeria’s housing crisis and make home ownership even more difficult for average citizens.
Dealers quote new cement prices nationwide
Legit.ng earlier reported that the cost of a 50kg bag has spiked to between N10,500 and N11,000 across several states, as builders and consumers grapple with higher construction expenses.
A market survey conducted by Daily Trust in parts of Kwara, the Federal Capital Territory (FCT), Kano, Kaduna and Jigawa shows that the increase cuts across major brands, affecting contractors, block makers and individuals undertaking private building projects.
In Ilorin and other parts of Kwara state, cement that sold for between N9,300 and N9,700 per bag in January now averages N10,500 to N10,700, depending on brand and location.
Source: Legit.ng
