Cement Price Remains at N12,000 Despite Government Intervention, Importation Threat
Despite the Nigerian government's intervention and the threat of allowing cement importation, the price of cement remains high.
The Nigerian market is currently facing a cement price crisis, with costs remaining stubbornly high despite government efforts to negotiate lower prices with manufacturers. Dangote Cement is selling for N12,500 per bag, Lafarge ranges between N12,000 and N14,000, and BUA Cement, the cheapest, is between N10,000 and N11,000 per bag. This situation has led to the abandonment of many housing projects and a significant slowdown in construction activities.
The federal government has urged cement producers to reduce prices to between N7,000 and N8,000 to make cement more affordable. However, manufacturers cite several challenges, including high gas costs, import duties on spare parts, poor road networks, high foreign exchange rates, and cement smuggling, as reasons for the high prices.
Minister of Housing and Urban Development, Ahmed Dangiwa, has expressed dismay at the continuous price increase, emphasizing that the high prices are unjustifiable given that raw materials are locally sourced. The government has warned that it might open borders for cement importation to address the issue, which could have adverse effects on housing delivery as increased material costs lead to higher house prices.
Source: Africa Housing News
