Cement Prices Expected to Remain High in Nigeria Throughout 2024

Excerpt: Despite BUA Cement's price reduction in October, a new report by Cardinal Stone predicts that cement prices in Nigeria will continue to be high in 2024 due to various market factors.

Cement Prices Expected to Remain High in Nigeria Throughout 2024
Photo by Nupo Deyon Daniel / Unsplash

A recent report titled “Nigeria Cement: Rebounding from a Tumultuous Year” by Cardinal Stone has shed light on the outlook of Nigeria's cement industry for 2024. The report acknowledges that 2023 was a challenging year for the industry, marked by the poorly executed naira redesign leading to cash scarcity, currency devaluation in June, and heavy rainfalls during the third quarter.

Despite these challenges, the report projects a rebound in the sector's performance in 2024. This optimism is based on several factors, including an increased infrastructure budget for 2024 at N1.32 trillion, the creation of the Infrastructure Support Fund (ISF) by the Presidency, active implementation of the African Continental Free Trade Area (AfCTA), and increased production capacity.

However, the report indicates that cement prices are expected to remain high in 2024. This is due to producers seeking to offset operational costs, volatility in the forex market, and high inflation. The possibility of a price war between players in reaction to BUA’s price reduction in October 2023 is considered slim but not impossible.