The price of cement has surged by 100% over the past three years, reaching a record high of N7,000. Investigations revealed that in March 2021, cement prices ranged from N3,300 to N3,500 in Lagos and Ogun States, but have now escalated to between N6,500 and N7,000 in the same regions.
Devakumar Edwin, Dangote Cement’s Group Executive Director, attributed the soaring cost to increased global demand for cement triggered by the COVID-19 crisis. This, combined with monetary policy changes and low returns from the capital market, led to a surge in construction activity in Nigeria. Consequently, Dangote Cement had to halt exports from its export terminals to meet local demands at the expense of dollar earnings.
Expressing concern, Igwe Ukaegbu, President of Oriental Block and Concrete Producers Association in Enugu State, highlighted that the rising cement prices were adversely affecting production output and income of association members. He urged the government to intervene by granting more licenses to industrialists for cement production, hoping for a reduction in prices.
In a bid to address the issue, the Cement Producers Association of Nigeria cautioned that the government’s plan to introduce concrete roads could further raise the price of cement to N9,000 per bag. They implored the government to facilitate greater participation in the cement industry, stressing that Nigerians should not have to purchase cement for more than N5,600 per bag.
The association warned that without proactive measures, cement prices could soar even higher, reaching over N9,000 per bag, especially during the dry season, in response to the Honourable Minister of Works’ initiative on cement technology and the directive on housing by the President.
