Cement prices in Nigeria have climbed to about N12,000 per bag as rising energy and logistics costs continue to pressure manufacturers and distributors, private sector operators have said.
Industry experts say the price, which recently ranged between N11,000 and N11,500 depending on location, has now increased to around N12,200 per bag in some markets. They warned that the trend could slow down construction activities across the country.
In separate phone interviews with The PUNCH, the operators attributed the surge largely to the rising cost of fuel and transportation.
The Chairman of the Lagos Chamber of Commerce and Industry Construction and Engineering Group, Soji Adeniji, said the increase in fuel prices has significantly raised production and delivery costs for cement manufacturers.
According to him, higher pump prices are pushing up the energy expenses required to run cement factories.
“Everybody is laying claim to an increase in the pump price, which has gone up from what used to be N1,000 to about N1,900. That is going to affect the energy consumption of factories,” Adeniji said.
He also noted that logistics costs have become a major factor in the final price paid by consumers.
Adeniji explained that buyers who request delivery often pay more compared to those who pick up cement directly from the factory.
“When customers want cement delivered at about N11,700, it is different from picking it up from the factory at N11,200,” he said.
He added that the difference in prices reflects the rising cost of transportation and distribution across the country.
The industry leader further pointed out that factory-level pricing is also being affected by global economic developments, including the ongoing crisis in the Middle East, which could be influencing the cost of production inputs.
“One may not be wrong by concluding that it’s the effect of the conflict that we’re experiencing all over the world,” he said.
Similarly, the Chief Executive Officer of Space Button Architecture Ltd, Arc Oluseyi Amusan, linked the latest price hike to the rising cost of fuel.
Amusan said he recently experienced the increase firsthand when placing an order with a cement dealer.
“I was equally surprised when it jumped from N11,500 two weeks ago to N12,000. I ordered from the same dealer, and he said he hiked it because of the increase in fuel price,” he said.
He added that the rise could also be linked to manufacturers adjusting prices periodically, sometimes even before external factors fully take effect.
“The increase in fuel price could be linked to the present crisis in the Middle East, but it could also be a result of the cement manufacturer’s habit to often increase prices randomly even before the conflict,” Amusan stated.
Stakeholders in the construction sector warn that if the trend continues, it could slow down building projects and further raise the cost of housing and infrastructure development in Nigeria.
