The Nigerian cement market appears to be experiencing relative price stability, with leading manufacturers selling within a narrow range across major markets nationwide.
Market checks by Naija News on Saturday show that a 50kg bag of Dangote Cement is currently selling for about ₦10,000. BUA Cement is also priced at ₦10,000 per bag, reflecting near price parity between the two dominant players in the market.
Meanwhile, Mangal Cement, which mainly serves northern markets, is selling slightly lower at around ₦9,800 per 50kg bag, making it ₦200 cheaper than Dangote and BUA. This marginal price difference has drawn interest from builders and distributors, especially in cost-sensitive regions.
Input Costs Continue to Influence Cement Prices
Despite the current stability, industry observers note that cement prices remain shaped by several cost pressures. Energy costs, particularly fuel and power used in production, continue to play a significant role, as manufacturers depend heavily on alternative power sources due to unreliable grid electricity.
Transportation costs are also a major factor, with rising fuel prices increasing the cost of moving raw materials to factories and distributing finished products nationwide.
Exchange Rate and Raw Material Pressures
Fluctuations in the exchange rate have further impacted cement pricing, especially for imported machinery, spare parts, and certain production inputs. Although most raw materials are sourced locally, maintenance equipment and replacement parts are largely imported, adding to operational expenses.
Additionally, costs related to limestone mining, packaging materials, and logistics continue to affect the final price paid by consumers.
Demand and Competition Keep Prices in Check
Analysts suggest that steady demand from the construction sector, alongside competition among major producers, has helped keep cement prices within a narrow band. Ongoing infrastructure projects, real estate development, and housing construction have sustained consumption levels.
At the same time, competitive pressure among manufacturers appears to be curbing sharp price increases, as companies carefully adjust pricing strategies to maintain market share.
