Cement Prices Increase in Lagos, Abuja, Other regions, Stakeholders Make New Proposition
- The federal government has been requested by building industry value chain operators to intervene and address the continuous increase in cement costs
- In April 2025, the average retail price for a 50 kg bag of cement is between N10,000 and N10,500, depending on the brand and the region.
- The cement manufacturers blamed the price rise on rising production costs due to inflation and transportation charges
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Operators in the building industry value chain have urged the federal government to step in and address the ongoing rise in cement prices in an effort to make home ownership more accessible.
Source: UGC
However, as cement prices rose to significantly high levels, the Nigerian construction industry has faced difficulties over the years, with an average 50kg bag of cement selling for between N5,000 and N8,000 on the open market between December 2023 and November 2024.
Depending on the brand and the area, the typical retail price for a 50 kg bag of cement as of April 2025 is between N10,000 and N10,500.
Particularly for one of the top cement producers, the price of cement recently spiked to N15,000 in the Federal Capital Territory (FCT), Abuja, Lagos, and other Nigerian cities before levelling out between N9,500 to N10,500 per 50 kg.
In the market for building materials, other brands like BUA and Lafarge Cement have slightly varying prices.
What stakeholders propose
The cement producers ascribed the price hike to increased production costs brought on by inflation and transportation expenses, as well as high labor costs, frequent interruptions in gas supplies, and expensive equipment maintenance.
The National Association of Block Moulders of Nigeria (NABMON), which represents block manufacturers, has urged the Federal Government to take immediate, effective action to curb the rise in cement prices and avert an impending building catastrophe.
Adesegun Banjoko, president of NABMON, bemoaned the government's ongoing inaction on the ongoing increase in cement prices, which has repercussions for the building industry, housing delivery, and public infrastructure projects.
Adesegun said,
“We are waiting for that pragmatic step from the government on this issue of cement prices. Just as we’ve seen conscious and deliberate efforts to stabilise the Naira and petroleum prices, similar intervention is urgently needed in the cement sector.”
Expressing worries over the development, a builder based in Lagos, Mr Ebuka Okoro, said, “It will be ideal if the price of cement can be N5,000 per 50kg. This will encourage more investors and more people to build and bridge the huge housing deficit in the country.
“The usual complaints by the producers for hikes in the price are the cost of diesel and other industrial fuels, which they say increased significantly, impacting production costs. They also attributed the increase to frequent disruptions in gas supplies, which have affected cement production.”
Michael Adeyemi, a cement vendor in Lagos, bemoaned the price hike's disastrous effects on builders and contractors, who are finding it difficult to control their spending.
He asserts that the high cost of cement would surely have an impact on the purchasing power of people and companies wishing to purchase homes or take part in other building projects.
To stabilise prices and support the construction industry, Adeyemi stated that the government must address the factors causing price instability, particularly high maintenance costs brought on by producers' use of heavy-duty equipment and facilities, unpredictable power supplies, and unfriendly government policies.
Retail prices continue to remain at N10,000 and N10,500, which hinders efforts to increase the nation's housing supplies, despite the federal government having recently visited with some of the producers and urged them to lower costs to N7,000 and N8,000 per 50 kg.
Source: Getty Images
For cement producers, the experts recommended industry-specific assistance. To lower prices, they recommended that the government invest in infrastructure that supports manufacturers' operations, subsidise production costs, and promote competition in the cement industry.
A building contractor, Mr Obiora Alex, said,
“By subsidising production costs, the government can enable cement manufacturers to reduce their prices. Investing in infrastructure can reduce transportation costs and make it easier to get cement from factories to construction sites.”
Nigerians abandon cement, find alternative
Legit.ng reported that due to a number of causes, including increased demand and supply chain interruptions, the price of cement, a basic building material, has skyrocketed.
A recent survey by Legit.ng found that the average retail price of a 50kg bag of the product sells for N10,000 across Lagos state.
This is a significant increase compared to October 2024, when the Financial Derivatives Company Limited reported that the average price of a 50kg bag of cement dropped to N7,500.
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Source: Legit.ng
