Cement: Skyrocketing Prices of Building Materials Put Homeownership Out of Reach for Many Nigerians
- After stabilizing around N7,500 per 50kg bag, the price of cement went up to N8,500 a few weeks ago, depending on the brand and region
- From N4,500 at the beginning of the year, findings have shown that the commodity's price has risen by nearly 100% since January
- In addition, the price of blocks, iron rods or reinforcement, kitchen doors, and steel doors, among other materials, have increased significantly
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Depending on the brand and area, the price of cement increased to N8,500 a few weeks ago after stabilizing at N7,500 per 50 kg.
Source: Getty Images
The commodity's price has increased four times so far this year. In fact, since January, the commodity's price has increased by almost 100% from N4,500 at the start of the year.
Sebastine Ovie, an estate manager, said:
“The immediate impact of these price increases is that project timelines are disrupted, causing safety concerns as contractors with depraved minds are under pressure to cut corners,”
Ovie cited high energy costs and monopolies as the main reasons for the regular price increases. He clarified that Nigeria only has three significant cement producers.
He claimed that these three companies—Dangote, BUA, and Lafarge—control almost 95% of cement manufacturing.
Other building materials increase in price
In addition to cement, the cost of other building supplies has increased. The cost of an iron rod or reinforcement, which provides structural stability and integrity to structures, increased from N220,000 in 2020 to N265,000 per ton in 2021, then to N475,000 in 2022 and N1.2 million in 2024, according to a recent BusinessDay market survey.
While the price of six-inch blocks increased from N160 in 2019 to N510 today, the price of nine-inch blocks, which sold for N180 in 2019, remained stable, and then increased to N220 in 2021, N340 in 2022, and now N700 in 2024.
The impact on steel doors and other finishes is equal. In 2019, a steel entrance door cost N150,000; today, it sells for more than N460,000. In certain instances, the price of kitchen carcasses and cabinets has increased by two or three times. A kitchen door has increased from N11,000 to N26,000, and a kitchen carcass board that used to retail for N15,500 now sells for N36,300.
Reacting to this, Mojid Ayobami, a building developer advised that
"Building of house is no longer for the fainted heart judging by the rate at which rapidly increase in price. You could buy a building material today and then the next day, you will be alarmed at the price changes."
Traders sell 50kg cement below N9,500
Legit.ng reported that Financial Derivatives Company Limited has reported that the average price of a 50kg bag of cement dropped to N7,500 in October 2024.
The new price represents a 21.05% reduction compared to the N9,500 average price in September 2024.
FDC disclosed the changes in its latest commodity update for November.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
Source: Legit.ng
