“No More N12k/Per Bag:” Survey Shows Dangote, BUA, Others Crash Cement Prices to New Low

“No More N12k/Per Bag:” Survey Shows Dangote, BUA, Others Crash Cement Prices to New Low

“No More N12k/Per Bag:” Survey Shows Dangote, BUA, Others Crash Prices to New Low

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A new survey by Henzodaily.ng shows that cement prices have crashed from their initial costs in January 2024Cement sellers attributed the crash to various factors, including low demand and stronger nairaThe current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand

Henzodaily.ng's Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

A market survey conducted by Legit. ng shows cement prices have dropped from the high of N15,000 it sold in January 2024.

Retailers of the product said the drop is due mainly to ex-depot prices, which have also dropped following a meeting the producers had with the .

Sellers and manufacturers have crashed the price of cement by N15,000 per bag.
Credit: NurPhoto
Source: Getty Images

Nigerians reduce demand for cement

According to them, the demand for cement has thawed since February 2024 as Nigerians have resisted buying the product due to its high cost.

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A dealer in the Iju-Ishaga area of Lagos, identified as Olayinka Olaniyi, told Henzodaily.ng that sales are picking up due to the reduced price.

“At a point, Nigerians stopped buying due to the high price of N15,000. I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly; he said:

He said that currently, the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.

Another seller, Justice Ike, in the Ogba area of Ikeja, corroborated Olaniyi's assertions, saying that the prices are crashing as manufacturers adjust their depot prices.

Crash in dollar leads to price crash

He also said the naira's appreciation against the dollar may be responsible.

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“We know that the naira is doing well against the dollar now, and it would be absurd if manufacturers continued to sell the product at the old prices.

“I also believe that the 's intervention and the threat to license more importers may have worked, leading to the reduction in price,” he said.

A major distributor in Owerri, John Ikechukwu, told Henzodaily.ng in a telephone interview that low demand is also driving the price crash.

“People are backing off now due to the high price, but it is beginning to come down now.”

He confirmed that the product is currently sold at N9,000 in the South East despite the brand.

Ikechukwu also attributed the fall in price to the gains of the naira against the US dollar.

In a previous report by Henzodaily.ng, Nigerians reacted to the rising cement prices, with stakeholders saying the hike would lead to more building collapses as people may resort to cheap means.

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Cement price moves from N6,500

The price of a 50kg bag of cement has risen to about N9,500 in many parts of Lagos and around the country, primarily caused by the biting effect of in Nigeria.

Findings show that building materials' prices have steadily risen from N6,000 to N6,500 to over N9,000 in many parts of the country.

The Guardian reports that the cement price rose to N8,000 in Kogi State as many builders were unaware of the sudden price change.

The periodic increase in the product's price has caused retailers to halt sales, fearing that manufacturers might increase prices soon.

Price list of Dangote, BUA, Lafarge, others

Henzodaily.ng earlier reported that Retailers of significant cement producers in the country have continued to sell the commodity at high prices despite a recent agreement between manufacturers and the .

Henzodaily.ng earlier reported that Dangote, Lafarge, BUA, and other cement producers agreed to cap 50kg bag of cement between N7,000 and N8,000.

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This was agreed during a meeting initiated by the Minister of Works, Umahi, attended by his counterparts from the Ministry of Industry, Trade, and Investment, including Doris Uzoka-Anite, in on Monday, February 19, 2024.

Source: Henzodaily.ng

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