Cement Price at N12,000 Defies Federal Government's Intervention in Nigeria
Despite the Nigerian federal government's intervention efforts and threats to permit cement importation, cement prices remain high.
In Nigeria, the cost of cement continues to challenge the federal government's attempts to regulate it, with prices holding steady at an average of N12,000 for a 50kg bag. This situation persists despite the government's threat to allow the importation of cement to force price reductions.
A survey conducted by BusinessDay reveals that brands like Dangote Cement and Lafarge are selling for N12,500 and N12,000 to N14,000 respectively, making the construction sector's future uncertain. The federal government had negotiated with major cement manufacturers to set the price between N7,000 and N8,000, depending on the location. However, manufacturers cited high production costs due to expensive gas and import duties on spare parts, among other challenges, as reasons for the price hike. Ahmed Dangiwa, the Minister of Housing and Urban Development, criticized the continuous price increase, emphasizing Nigeria's abundance of raw materials for cement production.
The government warns of the possibility of opening the market to cement imports if the situation doesn't improve, highlighting the crisis this poses for affordable housing. As of now, the price of cement, which was between N5,000 and N6,000 in January last year, reflects a significant increase, complicating construction projects and raising questions about the factors driving these price changes.
Source: Businessday NG
