Nigerians hoping for a significant drop in cement prices might have to wait a while longer. While major manufacturers like Dangote, BUA, and Lafarge agreed to reduce prices to N7,000-N8,000 per 50kg bag in February 2024, reports from across the country suggest prices remain stubbornly high.
What’s the Hold Up?
There seems to be a disconnect between the agreed-upon price and reality on the ground. Retailers are reportedly buying cement from suppliers at prices exceeding N7,000, leading them to maintain higher retail prices. This could be due to a number of factors, including:
- Transportation Costs: Rising fuel costs could be eating into the profit margins of distributors, who may be inflating prices to compensate.
- Supply Chain Issues: Lingering supply chain disruptions could be limiting the availability of cement at the agreed-upon price point.
Current Market Price
While the official range should be N7,000-N8,000, Nigerians are still experiencing a wider price range depending on location and brand. Here’s a look at the reported prices:
- Dangote Cement: N11,000 – N12,500
- BUA Cement: N10,000 – N11,000
- Lafarge Africa: N12,000 – N14,000
What to Expect
The Nigerian government is reportedly looking into the discrepancy between agreed prices and retail prices. Intervention from lawmakers, coupled with a potential decrease in fuel costs, could lead to a future price reduction.
Recommendations for Buyers
- Shop Around: Prices can vary between retailers, so it’s important to compare prices before making a purchase.
- Consider Bulk Purchases: Buying larger quantities directly from distributors might offer a slight price advantage.
- Wait and See: If your project isn’t urgent, waiting for the market to adjust to the agreed prices might be a wise strategy.
Remember, these are just reported prices, and your actual cost may vary. It’s always best to get quotes from multiple retailers before finalizing your purchase.
