Cement prices rise by 40% in Nigeria
Prices of various brands of cement skyrocketed overnight across the country putting builders and suppliers under unexpected pressure. Brands of cement initially sold at between N1,500 and N1,600 have jumped to between N2,200 and N2,400 – a 40% rise, in most parts of the country.
Dealers of cement in Kano State yesterday attributed the increase to unexpected suspension of production by the major cement companies. Group Head, Corporate Communications at Dangote, Anthony Chiejina, said the increment was due to the acute shortage of forex and increase in the energy price of gas due to depreciation of the naira.
A cement company staff member said: “We were directed not to collect any new payment from dealers since last week and on Monday were directed to increase the price by N600.” Cement buyers have also said most construction works within the capital city will soon be put on hold.
In most areas a bag of Dangote cement rose from ±N1,500 to around N2,200. A major dealer said that currently a truck of 600 bags costs over N1.260 million, almost 50% higher and an off-loading cost of N9,000 caused dealers to raise the per bag cost to N2,200.
Meanwhile, building contractors and property owners in Calabar, Cross River State, said they might no longer embark on new buildings because of the new price of cement.