Nigeria’s construction materials market continues to be led by major players like Dangote Cement, BUA Cement, and Lafarge Cement, although their prices remain elevated and differ across various states and retail points.
A fresh market assessment conducted by Gossip News Now shows that a 50 kg bag of Dangote Cement is currently selling for ₦10,200 to ₦10,400.
BUA Cement is priced slightly lower, going for about ₦10,100 to ₦10,300 per 50 kg bag, while Lafarge Cement is retailing for ₦10,400 to ₦10,600 for the same quantity.
Cement prices in Nigeria continue to rise due to several key factors:
1. Foreign Exchange Pressure & Imported Components
A number of essential materials used in cement manufacturing—such as certain raw inputs, spare parts, and packaging—are either imported or priced in foreign currency. With the Naira losing value, production costs climb, and these increases are ultimately transferred to buyers.
2. High Energy and Fuel Expenses
The cement industry relies heavily on energy: diesel for transportation and milling, as well as electricity to run factory operations. Any increase or instability in fuel prices directly raises the cost of producing and distributing cement.
3. Transportation & Logistics Challenges
Poor road conditions, security concerns, and long-distance haulage significantly affect logistics. Moving cement from factories to wholesalers and then to retailers becomes more expensive the tougher the route, resulting in higher market prices.
4. Market Demand and Supply Balance
Cement costs rise when construction activity grows—whether from housing projects or major infrastructure works. If production does not keep up with demand, prices escalate. Analysts note that the sector has seen strong demand in recent months.
5. Government Policies & Industry Responses
Although the government has repeatedly appealed to manufacturers to reduce prices (at times suggesting a target of ₦7,000 per bag), producers argue that rising operating costs make such reductions unrealistic, leading to continued high pricing.
6. Brand Positioning & Competitive Strategy
Big brands like Dangote, BUA, and Lafarge may set their prices differently depending on their market power, cost structure, and how they position themselves. Stronger brands sometimes maintain higher prices even when production costs are comparable, due to perceived value.
