When we mention building construction in Nigeria, there are a number of things that come to mind, acquiring land, getting engineers, and buying things. Presently, of all the materials needed to put up a building, one that seems quite expensive to most people is cement.
Cement consumes up to 40% of all the building costs during the estimation plan.
Aside from cement being expensive, the price keeps fluctuating and it’s not the same price across states. The price in Ibadan differs from that of Lagos, while that of Abuja differs from that of Port Harcourt.
The same cement isn’t that funny?
Some years back, a bag of cement sold within the range of N1000 and N1500.
In 2016 there was very high inflation in the price and it went up to like N2000 to N2500. It was unimaginable inflation that halted on-going building projects in Nigeria then.
The price has been sky-rocketing since then thereby increasing building cost. People keep putting up buildings every day.
The current problem about the prices of cement in Nigeria now is not the increase but the lack of uniformity in price. People keep having different prices in mind which in a way scares some people off from building construction.
They keep circulating different prices thereby confusing other people.
This post thereby seeks to give an update and correct prices of cement in Nigeria as it is important for potential house owners, civil engineers, and other experts in this field to know the current price of cement in Nigeria to be able to come up with a good estimate for the project.
Current Cost of Cement in Nigeria
There are different brands of cement in Nigeria and these brands have different prices at which they sell. The price of Dangote cement is different from that of Lafarge; that of UNICEM is different from that of Eagle cement. It goes on and on like that.
Different Brands of Cement in Nigeria and Prices
Presently, cement in Nigeria goes for about ₦2,550 to ₦2,800 per bag depending on the location and brand among other factors. The wholesale price is ₦1,470,000 to ₦1,510,000 for 600 bags depending on the manufacturer.
The table below shows cement brands known in Nigeria as well as their various prices.
Dangote Cement Plc is owned by Dangote Group which happens to be the biggest player in the cement industry. The company was founded by Alhaji Aliko Dangote as Obajana Cement Plc in 1992, before changing in July 2010 to Dangote Cement Plc.
According to theNigerian Stock Exchange, Dangote Cement is the largest company engaged in the production and distribution of cement in Nigeria.
They also export to other African countries like Congo, South Africa, Senegal, Ghana, Zambia, Sierra Leone, Liberia, Tanzania, Cameroun, Ivory Coast, and Ethiopia.
Dangote manufacturing plant is located in Obajana, Kogi state. It is the largest in Africa, with a production capacity of 10.25mmtpa.
The company’s other plants are in Obese, Ogun state, and Gboko, Benue State. Outside Nigeria, Dangote Cement also has cement manufacturing plants in some African countries.
Lafarge Cement WAPCO Nigeria
This is another big player in the Nigerian cement market. Lafarge is owned and controlled by LafargeHolcim, a French-Swiss company whose headquartered is in Paris, France.
The company facilitates the production of about 12mmtpa of cement in Nigeria, which is expected to hit 18mmtpa by 2020.
The company’s plants are in Ogun state (3 WAPCO plants ), Gombe state (Ashaka cement plant ), Cross River state (United Cement Company of Nigeria plant ), and Rivers State (Atlas cement company).
Aside from cement production, Lafarge also processes and distributes concrete and other construction aggregates.
Ibeto cement has its plant in Bundu Ama, Port Harcourt, Rivers State. The company started production in 2005 at its bagging Terminal in June 2005.
The Terminal is a bagging plant with a storage capacity of 50,000 metric tons, 1,500,000 tons per annum which means the production of not less than 6,000 metric tons per day.
They have two production lines with a capacity of 2700 (50kg bags) per hour each. Nigeria Cement Company Plc (NIGERCEM), Nkalagu, Ebonyi State is 60% owned by the Ibeto Cement company.
BUA Cement Group
The Group is another large cement manufacturer in Nigeria with its plant and three major subsidiaries in both the Northern and Southern parts of Nigeria.
BUA cement terminal produces up to 2 million metric tonnes per annum. BUA cement plants are of the capacity to produce different grades of cement demanded in the markets.
They also have the capacity of producing cement that meets the highest standard of cement manufacturing
Factors Responsible for the Instability in Prices of Cement in Nigeria
Although the major consumer of cement in Nigeria is the government. The government uses 50% of the total cement in the country. Prices of Cement in Nigeria keeps fluctuating due to several reasons. We have highlighted some of them here.
Epileptic Power Supply: This is a very feasible problem in Nigeria that affects every aspect of the country’s economy. It also affects cement production in the country. Cement manufacturers depend on expensive alternative sources of power, and this results in high prices.
High Maintenance Costs: The cost of running a cement manufacturing plant is high due to the expensive cost in maintenance of the facilities used in the cement industry and the heavy automation machine used makes the cost high. For the industry to make money, there has to be an increase in the price.
High Distribution Costs: Cement is a commodity that weighs a lot and the cost of transporting things depends on the weight of such goods. Cement manufacturers spend heavily to distribute the commodity, which is quite heavy due to its nature and composition.
In a case where the plant is far from the people, the price will be high.
Government Policies:Policies made by the Nigerian government over the years has been perceived to be hostile to cement manufacturers in the country. They pay multiple taxes and other ever-changing policies. The bearer of all remains the consumer.
Other factors are technological inadequacies and the condition of the economy.