Cement Costs Fall To N8000 As A Result Of Government Intervention In Northern Nigeria

A bag of cement in the North is currently officially priced between N8,000 and N9,500. This is a significant reduction from the previous rates and is in keeping with the federal government's efforts to slow the rising cost of building materials.

When compared to other African nations, cement prices in Nigeria are still rather high.

Cement bags weighing 50 kg are sold at almost the same prices in retail stores by well-known cement brands like Lafarge, BUA, and Dangote.

Notably, all cement brands offer wholesale options, making wholesale cement purchases—equivalent to a trailer load—a more economical choice.

Prices have significantly decreased in the Federal Capital Territory (FCT), Niger, and Nasarawa State when compared to prior levels, which were higher than N13,000 per bag prior to government intervention.

Major cement brands currently cost between N8,000 and N9,500 for Dangote Cement, between N8,000 and N9,300 for Lafarge Cement, and between N7,500 and N9,000 for BUA Cement in these states.

One of the traders provided insights into the market dynamics in response to the government's directive to lower cement price.

Traders are being cautious and will watch the market until Wednesday of next week to evaluate the situation, even though there are signs that prices may fall below N8,000.

The difficulties in regulating prices are ascribed to wholesalers and retailers rather than manufacturers, as they are crucial in determining the prices that end users pay.

Notwithstanding official declarations, traders set most prices, with some still failing to abide by orders to lower prices that were sent out three weeks in advance.

Although older stock traders keep their prices around N9,500, the current range of prices is between N8,000 and N8,500, suggesting that there is room for further reduction, even if the N5,000 per bag levels will not be reached again.