A market survey conducted by Legit.ng shows cement prices have dropped from the high of N15,000 it sold in January 2024. Retailers of the product said the drop is due mainly to ex-depot prices, which have also dropped following a meeting the producers had with the Nigerian government.
Nigerians reduce demand for cement According to them, the demand for cement has thawed since February 2024 as Nigerians have resisted buying the product due to its high cost.
A dealer in the Iju-Ishaga area of Lagos, identified as Olayinka Olaniyi, told Legit.ng that sales are picking up due to the reduced price. “At a point, Nigerians stopped buying due to the high price of N15,000. I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly,” he said. He said that currently, the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.
Another seller, Justice Ike, in the Ogba area of Ikeja, corroborated Olaniyi’s assertions, saying that the prices are crashing as manufacturers adjust their depot prices. Crash in dollar leads to price crash He also said the naira’s appreciation against the dollar may be responsible.
“We know that the naira is doing well against the dollar now, and it would be absurd if manufacturers continued to sell the product at the old prices. “I also believe that the Federal Government’s intervention and the threat to license more importers may have worked, leading to the reduction in price,” he said. A major distributor in Owerri, John Ikechukwu, told Legit.ng in a telephone interview that low demand is also driving the price crash. “People are backing off now due to the high price, but it is beginning to come down now.”
He confirmed that the product is currently sold at N9,000 in the southeast despite the brand. Ikechukwu also attributed the fall in price to the gains of the naira against the US dollar. In a previous report by Legit.ng, Nigerians reacted to the rising cement prices, with stakeholders saying the hike would lead to more building collapses as people may resort to cheap means.
Cement price moves from N6,500 The price of a 50kg bag of cement has risen to about N9,500 in many parts of Lagos and around the country, primarily caused by the biting effect of inflation in Nigeria. Findings show that building materials’ prices have steadily risen from N6,000 to N6,500 to over N9,000 in many parts of the country. The Guardian reports that the cement price rose to N8,000 in Kogi state as many builders were unaware of the sudden price change. The periodic increase in the product’s price has caused retailers to halt sales, fearing that manufacturers might increase prices soon.
Price list of Dangote, BUA, Lafarge, others Legit.ng earlier reported that retailers of significant cement producers in the country have continued to sell the commodity at high prices despite a recent agreement between manufacturers and the federal government of Nigeria. Dangote, Lafarge, BUA, and other cement producers had agreed to cap 50kg bag of cement between N7,000 and N8,000.
This was agreed during a meeting initiated by the minister of works, David Umahi, attended by his counterparts from the Ministry of Industry, Trade, and Investment, including Doris Uzoka-Anite, in Abuja on Monday, February 19, 2024.