Dealers Quote New Cement Price as Another Billionaire Starts Cement Production
- The price of cement has increased again amid rising production costs and the devaluation of the naira
- A new report showed that the average price for a bag of cement across the country is now above N8,000
- A new cement brand, launched by Kastina billionaire Dahiru Mangal, has also entered the Nigerian market
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The cost of a 50kg bag of cement has increased again as manufacturers grapple with high production costs.
According to the latest Financial Derivatives Company (FDC) commodity update for October, the average price for a bag of cement in Nigeria has increased to N8,400 in October 2024.
Source: Getty Images
FDC noted that the latest price represents a 13.51% increase compared to the N7,400 per bag reported in August.
The private Nigerian economic think tank and investment boutique company reported a marginal drop of 21.05% in cement prices in September 2024.
FDC also said the lowest price Nigerians have paid for cement in 2024 is N4,200.
FDC’s senior associate, Dumebi Oluwole, and analyst Rosemary Adibe explained:
"The price of cement rose by 13.51% to N8,400 in October from N7,400 in August. This price hike is mainly attributed to the soaring price of natural gas, the main energy source in cement production.
"Increased logistics costs also contributed to the rise. Higher prices are expected to impact the cost of building materials, roads, and bridges for both civil construction and the real estate sectors."
Cement prices sell higher in neighbouring countries
Legit.ng earlier revealed that cement prices in Nigeria are far lower than in neighbouring countries.
Vanguard reports that in neighbouring countries such as Chad and Cameroon, cement costs between $120 and $150 per 50kg bag.
At an exchange rate of N1,600 per dollar, the average price of the product is between N240,000 and N270,000 per 50kg bag, higher than the N8,000 it sells in Nigeria.
Mangal Cement addesses N6,000 price
Legit.ng previously reported that Mangal Cement issued a public statement regarding the cost of its cement product, which is circulating on social media.
The company, owned by Katsina-born billionaire Dahiru Mangal, started production in its newly built plant in Kogi state.
The plant can produce 6,000 tons per day of cement, and Nigerians were excited that its entry into the Nigerian cement market would help lower prices.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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