Survey Reveals Dramatic Drop in Cement Prices. A recent survey conducted has unveiled a significant decline in cement price from their previous highs recorded in January 2024. This decline, attributed to several factors including decreased demand and a stronger local currency, marks a welcome relief for consumers.

Cement Price Drops — Image source: Intel Region

The current retail price for a 50kg bag of cement ranges between ₦7,000 and ₦7,500, varying by brand.

Decreased Demand for cement led to Price Reduction

Retailers of cement have reported a notable decrease in demand since February 2024, as consumers resisted purchasing due to the exorbitant prices. Olayinka Olaniyi, a dealer in Lagos, highlighted the impact of high prices on sales, noting a resurgence in demand following the price drop. He revealed that prices now hover between ₦7,500 and ₦8,000 per bag, contingent on brand and market demand.

Drop in dollar leads to cement price reduction

Justice Ike, another seller in Ikeja, echoed Olaniyi’s observations, attributing the price decline to adjustments in manufacturers’ depot prices. Ike further speculated that the appreciation of the local currency against the US dollar may have influenced this downward trend. He emphasized the role of governmental interventions and the threat of licensing additional importers in driving down prices.

Regional Variances and Consumer Concerns

John Ikechukwu, a major distributor in Owerri, emphasized the impact of reduced demand on price reduction, noting a gradual decline in prices across the Southeast. Despite this positive development, concerns linger over the effects of previous price hikes on building safety, with fears of increased building collapses due to the use of substandard materials.

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

Cement Price Dynamics: From Inflation to Stability

The journey of cement prices in recent times has been tumultuous, driven primarily by the adverse effects of inflation in Nigeria. Starting from around ₦6,000 to ₦6,500, prices have surged to over ₦9,000 in many regions, prompting apprehension among builders and retailers alike. Reports from Kogi state indicate a sudden increase to ₦8,000 per bag, catching many builders off guard and causing disruptions in the market.

Commitment to Cement Price Regulation

Despite challenges, efforts to stabilize prices have been underway, with major cement producers such as Dangote, Lafarge, and BUA engaging in discussions with the Nigerian government. Following a meeting convened by the Minister of Works, an agreement was reached to maintain prices within the range of ₦7,000 to ₦8,000 per bag. This collaborative effort aims to alleviate financial burdens on consumers and foster a more stable construction industry.

In conclusion, the recent decline in cement prices offers hope for both consumers and stakeholders in the construction sector. While challenges persist, concerted efforts towards price regulation and market stability demonstrate a commitment to sustainable development in Nigeria’s building industry.

Read also: