Cement Prices Hit N15,000 Per Bag as Nigerians Demand Manufacturers' Cost Breakdown
- A 50kg bag of cement now sells for between N12,000 and N15,000 across many Nigerian markets, up from about N7,500 less than a year ago
- Industry experts estimate the fair factory-gate price should be N7,000 to N8,000 per bag, raising questions about margins along the supply chain
- The FCCPC has launched a preliminary investigation into possible price manipulation by Nigeria's major cement producers
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Nigerians are demanding that cement manufacturers explain how a 50kg bag now retails at between N12,000 and N15,000 in many parts of the country, a sharp jump from roughly N7,500 less than a year ago, despite Nigeria holding an installed production capacity of more than 60 million metric tonnes annually and large limestone reserves.
Architect and affordable housing advocate Ezekiel Nya-Etok, who serves as executive director of Estate Services at the Federal Housing Authority, said Nigerians had a right to know why prices had risen so sharply at a time when millions of citizens cannot afford decent housing.
Source: UGC
The Tribune reports that he acknowledged that manufacturers have legitimate costs, covering production, plant investment, wages and returns to shareholders, but argued the central issue was one of transparency and affordability.
Nya-Etok called for a full breakdown of the N15,000 retail price, covering raw materials, energy, fuel, packaging, plant maintenance, depreciation, financing, taxes, transportation, distributor and retailer margins, and manufacturers' profits, to determine whether the price reflects actual costs or inflated margins somewhere along the supply chain.
What Does It Actually Cost to Make Cement?
Industry expert Clement Joseph broke down the production process in detail.
Extraction and crushing of limestone costs about N500 per bag, while proportioning, blending and raw grinding add roughly N950.
Pyroprocessing, where materials are heated in rotary kilns at up to 1,450 degrees Celsius to produce clinker, is the most expensive stage at about N3,500 per bag.
Finish grinding accounts for roughly N1,200, and packaging, storage and logistics add another N1,500.
Based on these estimates, Joseph put a fair factory-gate price at between N7,000 and N8,000 per 50kg bag, a range he said would still leave manufacturers with a profit margin of about 20% to 25%.
Source: Getty Images
FCCPC Investigates, Experts Warn on Market Concentration
The Federal Competition and Consumer Protection Commission has already launched a preliminary investigation into Nigeria's cement industry over possible price manipulation.
The development comes as Dangote Cement Plc, BUA Cement Plc and HBM Nigeria Plc, formerly Lafarge Cement, posted combined revenue of about N3.2 trillion in the first half of 2026.
Built environment experts said the concentration of production among a small number of major players could reduce the effectiveness of market competition in keeping prices in check.
They called on the government to attract credible new manufacturers into the market and support existing producers to expand capacity.
Cement producers outline steps needed to reduce prices
Earlier, Legit.ng reported that CEPAN National Chairman David Iweta said cement manufacturers could help the Federal Government bring down prices within 30 days if the association was involved in efforts to address the crisis.
Iweta attributed the price surge partly to limited supply, saying demand for cement has outpaced available production.
He also pointed to foreign exchange challenges as a major factor affecting the industry's supply chain, noting that difficulties in accessing forex have increased pressure on cement producers and contributed to higher prices.
Source: Legit.ng
