Despite the surge in the profits of cement manufacturers in the country, the end price of the commodity has continued an upward surge in the last 18 months. This is in spite of assurances by the manufactures that they are increasing production.
Consequently, the rising price of cement is causing a sharp increase in the cost of building development.
The Nigerian cement market is dominated by three players –Dangote Cement, Lafarge Africa Plc and BUA Cement.
Investigation reveals that the price of a 50kg bag of cement initially rose from N2,500 to N3,600 around November 2020.
Currently, there is a huge difference in the ex-factory price of cement and the retail market price.
A wholesale dealer in various kinds of Cements at Okera in Ajah Axis of Lagos state, Adeleke Oluwafemi, said a bag of Dangote Cement was sold for N3,400 from the company while wholesalers sold same for N3,600 within January and April 2021.
The price however shot up later in the year currently selling at the rate of N4,000 while the retailers sell it between N4,200 and N4,300.
Oluwafemi said BUA Cement was sold for N3,600 in the early months of the year but is now sold at the rate of N4,100 per bag.
He added that Lafarge Cement, which was sold for N3,000 before July is now sold at the rate of N4,100.
Another retailer from Gbara Market in Lekki, Sadik Hassan Olugbade, said a bag of Dangote and Lafarge Cement, which was sold for N3,700 each earlier in the year, is now sold for between N4,100 and N4,300.
In the Federal Capital Territory, survey by our reporter shows that a bag of Dangote Cement is sold between N3,800 and N3,900, depending on the location.
Market survey conducted in Bwari, AMAC, Kwali, Kuje and Gwagwalada also shows that BUA Cement is slightly higher as it is sold between N3,900 and N4,000.
Larfage is sold between N3800 and N3900 depending on the location.
One of the cement dealers, who spoke with our correspondent, attributed the high cost of the products to landing costs, adding that there is no guarantee that the price will not go higher any moment from now if urgent action is not taken by the relevant stakeholders
In Kano, Dangote sold for N4,500, BUA N4,700 and Lafarge cost N4,450 for 50kg.
Some of the retailers who spoke to Daily Trust said there has been scarcity of the products in the last few days.
They said they suspect that there is a plan to further increase the price and as such the major dealers may be hoarding the products.
In Maiduguri, the Borno State capital, Dangote sold for N4,500 and Lafarge N4,100. BUA, which has not supplied the product in the last two weeks, last sold for N3,500 per bag
