Dealers Announce New Cement Price, Other Building Material as Chinese Firm Set to Take Over Lafarge

• The cost of building materials has skyrocketed, increasing by more than 100% in the past year
• The cost of a bag of cement increased by 100%, from N4,000 to N8,800 and other materials follow
• According to industry participants, the naira depreciation policy presented the real estate industry with significant difficulties

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Investigation has revealed that building material prices have skyrocketed, increasing by more than 100% in the past year.

Price increases for cement increased by 100%, from N4,000 to N8,800 per bag.

Last year, blocks sold for N250 each; now, depending on size, they range from N550 to N600.

Depending on the manufacturer, iron rods, which range in size from 10mm to 16mm and cost N800,000 per ton in 2023, are currently N1,600,000 or more per ton.

Paint prices have also increased; a large rubber that used to cost between N23,000 and N25,000 now costs between N46,000 and N50,000.

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Osilama Osilama, Vice President, North Central of the Real Estate Developers Association of Nigeria (REDAN), told Daily Trust that the currency devaluation policy has presented a significant obstacle for the real estate industry.

“Last year, the naira was exchanging for about N460 to $1, but today, it is about N1,700 to $1 and most of these items like iron rod and others are imported. So, how can the prices come down?” he asked.

Osilama added that the only option to lower the cost is to evaluate both the policy and the subsidy removal policy.

According to him, increasing the Nigeria Building and Road Research Institute's (NIBRRI) budget is necessary to provide them the capacity they need to manufacture these building materials domestically, which will help save money and lower prices.

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Legit.ng reported that Holcim AG will sell its 83.8% share in Lafarge Africa to Huaxin Cement Co., a Chinese cement company, in a $1 billion deal.

A statement by the group on Sunday, December 1, 2024, disclosed that the deal will be finalised in 2025, subject to regulatory approval.

If the new owners do not delist from the Nigerian Exchange Limited (NGX), the deal will double Lagarge's market capitalisation on the NGX.

Source: Legit.ng