As Nigerians anticipate a drop in cement prices following recent reductions in other commodity costs, the high price of cement continues to impact the real estate sector and individuals aspiring to build homes.
Several factors contribute to the elevated prices of cement in Nigeria, significantly influencing the construction industry and housing affordability.
1. Production Costs: The cost of producing cement in Nigeria remains high due to the price of energy and raw materials. Cement manufacturing is energy-intensive, and with fluctuating power supply issues, manufacturers often resort to using diesel generators, which increases operational costs that are passed on to consumers.
2. Transportation Costs: The logistical cost of transporting cement from manufacturing plants to different parts of the country adds a substantial burden due to the poor state of roads and infrastructure. This challenge is particularly acute during the rainy season when transportation becomes even more problematic.
3. Import Restrictions: While Nigeria has vast mineral deposits suitable for cement production, import restrictions on cement and clinker have been implemented to encourage local production. However, these restrictions can lead to supply shortages that drive up prices when local production is unable to meet rising demand.
4. High Demand: The demand for cement in Nigeria continues to rise due to rapid urbanization and population growth. The construction of new infrastructures, such as roads and buildings, further stretches the demand-supply balance, pushing prices upward.
5. Market Oligopoly: The Nigerian cement market is dominated by a few major players, which can influence pricing and competition dynamics. The limited competition allows these major cement manufacturers to set higher prices that reflect their market power.
Naija News, in this article, has deemed it fit to write about the price of bags of cement this week.
Price Of Dangote Cement
The current price of Dangote cement varies from ₦7,500 to ₦7,700 per 50kg bag, depending on the location.
Price Of BUA Cement
The retail price of BUA cement in Nigeria is between ₦7,950 to ₦9,000.
Price Of Ibeto Cement
The new price of Ibeto cement in Nigeria ranges between ₦8,500 to ₦10,000.
Price Of Lafarge Cement
The new Lafarge cement price in Nigeria is between ₦8,500 to ₦9,500.
Price Of UNICEM Cement
The price of UNICEM Cement ranges between ₦8,000 and ₦9,000, depending mostly on the location of purchase.
Price Of POP Cement
The price of POP Cement is between ₦8,500.
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