Recent data from BusinessDay indicates a notable decrease in the official price range for cement bags in the northern region of Nigeria. The prices now fluctuate between N8,000 and N9,500, marking a response to the federal government’s initiatives to tackle the escalating costs of construction materials.
Despite this adjustment, cement remains relatively costly in Nigeria compared to neighboring African nations. Major cement producers like Dangote, Lafarge, and BUA are all offering their products at nearly identical rates, with each 50kg bag maintaining consistency in pricing.
For those seeking more budget-friendly options, purchasing cement in bulk, equivalent to a trailer load, is advised. Wholesale options are available across all cement brands. Notably, in the Federal Capital Territory (FCT), Niger, and Nasarawa States, prices have experienced a significant reduction from previous levels that surpassed N13,000 per bag prior to government intervention.
Presently, major cement brands are priced as follows in these states: Dangote Cement ranges from N8,000 to N9,500, Lafarge Cement from N8,000 to N9,300, and BUA Cement from N7,500 to N9,000.
Market traders are exercising caution despite indications of potential further price drops below N8,000. They are monitoring the market until the middle of next week to evaluate the evolving situation.
Challenges in price regulation stem from the roles of wholesalers and retailers, who have considerable influence on setting prices for end-users. Discrepancies arise due to varying procurement methods, with some procuring directly from manufacturers and others through intermediaries.
Registering with manufacturers, such as Dangote, for regular truckloads of cement incurs significant expenses, contributing to pricing differences across channels.
While government directives have aimed to enforce price reductions, some traders are yet to fully comply. Those with older stock maintain prices around N9,500, while current rates range between N8,000 and N8,500.
Although the potential for further reduction exists, it is unlikely that prices will revert to previous levels of N5,000 per bag.
