Recently, the price of cement in Nigeria has risen sharply, reaching 8000 to 10000 naira per bag (1 RMB ≈ 201.3 naira). This is an increase of around N4,000 from the price a few weeks ago. This development has caused concern within the Nigerian government,
given the strong support given to cement manufacturers by road and housing contractors. Nigeria's Ministry of Works has summoned cement makers Dangote, BUA and Lafarge over rising cement prices.
The meeting, convened by Works Minister Dave Umahi, is expected to identify and address the challenges facing cement manufacturers in the country. The huge gap between the factory price and the market price will also be thoroughly examined. This information was disclosed in a statement by the Special Adviser to the Minister for
Media, Eduard Utjenna Orgi (Edward Uchenna Orji). "The works minister Nweze David Umahi CON has called an emergency meeting of all cement manufacturers in Nigeria due to concerns over the rising cost of cement, despite substantial support from road and housing contractors to cement manufacturers,"
the Ministry said
.
"It is well known that manufacturers face challenges and we will study them, but from our findings, the gap between the ex-factory price and the market price is large."
"Therefore, we need to investigate the situation and other issues to reach agreement." Umahi said.
The Nigerian cement industry is dominated by three major players: Dangote Cement Limited, BUA Group and Lafarge Africa Limited, which together account for 99% of production. In September
last year, BUA Cement Plc announced a reduction in the price of cement, slashing the price of a bag of cement from 5500 naira to 3500 naira, with the new price scheduled to take effect on October 2, 2023.
BUA Cement said the decision had been taken "to stimulate the development of the building materials and infrastructure sectors".
Bua Cement is the second largest cement producer in Nigeria and its price cut is expected to force other producers to follow suit. However, its feasibility is still worth worrying about.
