Cement prices in Nigeria appear to have stabilized within a narrow range, with major manufacturers selling at nearly identical rates—except for one northern rival offering a slight discount.
A market survey conducted by Gossip News Now on Sunday shows that both Dangote Cement and BUA Cement are retailing at ₦10,000 per 50kg bag, while Mangal Cement is priced at ₦9,800, making it ₦200 cheaper than the two dominant brands.
Key Factors Influencing Cement Prices in Nigeria
Below are the major forces currently shaping cement costs across the country:
1. Energy and Fuel Costs
Cement production is energy-intensive.
- The prices of gas, coal, and diesel significantly raise manufacturing expenses.
- Fuel scarcity often pushes diesel prices higher, increasing plant overheads.
2. Transportation and Haulage
Moving cement from factories to distributors plays a major role in its final price.
- Poor road conditions increase vehicle maintenance costs and slow deliveries.
- Rising diesel costs force haulage companies to charge more.
3. Import and Port Logistics
Although Nigeria produces most of its cement locally, many components are imported.
- Machinery parts and industrial equipment attract high clearing fees at ports.
- Foreign exchange shortages make imported replacement parts more expensive.
4. Exchange Rate Instability
Many key inputs are dollar-linked.
- Costs for gas, lubricants, maintenance tools, imported equipment, and truck parts fluctuate with changes in the CBN exchange rate.
5. Availability of Raw Materials
Proximity to limestone, gypsum, fly ash, and laterite deposits affects production cost.
- Plants farther from raw material sources spend more on extraction and transport.
6. Market Demand and Seasonal Trends
Prices typically rise during peak building periods such as:
- The dry-season construction boom
- End-of-year housing projects
- Government infrastructure spending cycles
7. Government Policies and Levies
Taxes, environmental fees, road usage charges, and state royalties all contribute to higher cement prices.
8. Production Efficiency
Manufacturers with more efficient plants can produce at lower cost.
- This operational edge allows regional players like Mangal Cement to offer slightly lower prices.
