Emmanuel Ochayi
In a turn of events, the price of cement in Nigeria has skyrocketed by 100% over the past three years, reaching an unprecedented high of N7,000 per bag.
This surge, fueled by spiraling inflation, has left Nigerians grappling with the exorbitant costs of construction materials.
Join our WhatsApp ChannelAccording to investigations by Prime Business Africa, the prices of cement have surged from a range of N3,300 to N3,500 in March 2021 to N6,500 to N7,000 per bag in Lagos and Ogun States as of last week.
Devakumar Edwin, Dangote Cement’s Group Executive Director, pointed to the global surge in demand for cement amidst the COVID-19 crisis as a key factor behind the price hike.
“The combination of monetary policy changes and increased construction activity has driven up demand, compelling us to suspend exports to meet local needs,” Edwin remarked.
READ ALSO: NGX: Market Cap To Hit N60trn As Dangote Cement, Sugar, Refinery Surge
However, the consequences of this price surge extend far beyond mere statistics. Igwe Ukaegbu, President of the Oriental Block and Concrete Producers Association in Enugu State, voiced the concerns of many in the industry, lamenting the adverse impact on production output and income.
“The challenge we have is the cost of cement and even sand. Everything is now costly. We are not making sales as we used to; so, we are suffering,” Ukaegbu expressed, urging government intervention to alleviate the burden on producers.
Furthermore, the looming prospect of the Federal Government’s plan to introduce concrete roads has sent shockwaves through the cement industry.
The Cement Producers Association of Nigeria has warned that such a move could further inflate prices, potentially reaching N9,000 per bag.
Calling on the government to address the underlying issues, the association emphasized the need for greater industry participation to stabilize prices and ensure affordability for Nigerians.
“Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps,” the association cautioned.
As Nigerians grapple with the financial strain of construction amidst soaring cement prices, the urgent call for intervention grows louder, echoing the plight of a nation navigating the complexities of economic instability.
