• Tuesday, April 16, 2024
businessday logo

BusinessDay

Cement prices drop to N8000 in northern Nigeria following government intervention

The current official price range for a bag of cement in the North stands between N8,000 and N9,500, a notable decrease from previous rates, in line with the federal government’s efforts to mitigate the soaring costs of construction materials.

Cement remains relatively expensive in Nigeria compared to other African countries.

Leading cement brands such as Dangote, Lafarge and BUA, are all retailing cement bags at nearly identical rates, with each bag weighing 50kg.

Notably, purchasing cement wholesale, equivalent to a trailer load, presents a more cost-effective option, with all cement brands offering wholesale options.

In the Federal Capital Territory (FCT), Niger, and Nasarawa States, prices have witnessed a significant decline compared to previous levels, which exceeded N13,000 per bag before government intervention.

The current prices for major cement brands in these states are as- Dangote Cement between N8,000 to N9,500, Lafarge Cement is between N8,000 to N9,300 and BUA Cement stands at N7,500 to N9,000

Speaking to our correspondent in Abuja, Okechukwu Uche, one of the traders shared insights into the market dynamics following the government’s directive to lower cement prices.

While there are indications that prices might drop below N8,000, traders remain cautious, observing the market until next week Wednesday to assess the situation.

The challenges in price regulation are attributed not to manufacturers but to wholesalers and retailers, who play a pivotal role in setting prices for end-users.

Uche noted that disparities arise from differing procurement methods, with some sourcing directly from manufacturers and others through dealers. Registering with manufacturers, such as Dangote, for regular truckloads of cement incurs significant costs, contributing to pricing discrepancies.

Despite government pronouncements, traders largely determine prices, with some yet to fully comply with directives issued three weeks prior to reduce prices.

While traders with older stock maintain prices around N9,500, current prices range between N8,000 and N8,500, indicating a potential for further reduction, albeit not returning to previous levels of N5,000 per bag.