Dealers Announce New Price For Cement, Other Building Materials as Chinese Firm Takes 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, as have other materials
• The naira depreciation policy has reportedly caused many difficulties for the real estate industry

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

According to investigations, the price of building materials in Nigeria skyrocketed by more than 100% over the past year.

For example, blocks were sold for N250 each last year; now, depending on the size, they range from N550 to N600 each.

Cement prices increased by 100%, from N4,000 to N8,800 per bag.

Depending on the manufacturer, iron rods, which range 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; products that previously cost between N23,000 and N25,000 now cost between N46,000 and N50,000.

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Nigerians are begining to lament over the increasing price of buiding material.

Segun Akinpelu said,

"If you check well, you will observe that there are lots of uncompleted buildings these days,. the cost of building material is slowly becoming unaffordable for the poor."

Ola Oladele said,

"Building house is now something one needs to calculate well befire dabbling into because the codst of building materials keep rising everyday."

FG can reverse building material cost trend

Osilama Osilama, Vice President of North Central chapter 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 rods and others are imported. So, how can the prices come down?” he asked.

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Osilama added that the only option to lower the cost would be 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 with the capacity they need to manufacture building materials domestically, which will help save money and lower prices.

Chinese company set for Lafarge take-over

Legit.ng earlier reported that Holcim AG would sell its 83.8% share in Lafarge Africa to Huaxin Cement Co., a Chinese cement company.

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

If the new owners do not delist from the Nigerian Exchange Limited, the deal could double Lagarge's market capitalisation on the list.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng