News

Cement: Retailers explain why prices are dropping

Published

7 months ago

April 23, 2024

The cement market, in the last couple of weeks, has seen a significant turnaround with prices tumbling from between N10,000 and N15,000 per 50kg bag to between N7,000 and N8,000.

The sudden rise in the prices of cement and other major building materials in February this year introduced upsets in the construction industry, especially in real estate, where many developers were forced to abandon building sites.

A recent market survey conducted by BusinessDay in different locations across the country confirmed a price drop, ranging between N7,000 and N7,500 per bag, though BUA cement is selling for N7,500 to N7,800 per 50kg bag, depending on location.

Both retailers and major distributors who spoke to BusinessDay explained that the price drop is due to low demand and government’s intervention. At the peak of the price hike, the federal government called a meeting with major producers where it was agreed that a bag of cement should sell for N7,000 to N8,000, depending on location.

But the producers did not comply with this agreement immediately. “Nigerians stopped demanding for cement; many project sites were abandoned as developers sat back and waited for the prices to come down. So, what has happened is an inter-play of demand and supply with price responding which is Economics at work,” Collins Okpala, a cement dealer, told our correspondent in Abuja.

In the Nyanya area of the Federal Capital Territory, a 50-kg bag of Dangote cement now sells for between N7,000 and N7,500, while BUA cement sells for between N8,500 and N9,500, down from between N11,000 and N12,000 respectively.

In Lagos, the product has seen significant price drop too. In Ojo area of the state, Sebastin Ovie, a dealer, told our reporter that what has happened is a crash from the January price, attributing the crash to low demand and stronger naira.

“The current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand. This is a significant drop from the average of N12,000 which most dealers were selling in February and March,” he said.

A dealer in Agege area of the state who identified himself as Taofik Olateju, told our reporter that sales are picking up due to the drop in price. He recalled that Nigerians at a point stopped buying due to the high price of the product at N15,000 per bag.

“I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly,” he said, confirming that the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.

Continuing, Olateju noted that “because the naira is now doing well against the dollar, it will be unreasonable for manufacturers to continue to sell the product at the old prices. I also believe that the federal government’s intervention and the threat to license more importers may have worked, leading to the reduction in price,” he stressed.

In Enugu, our correspondent reports that the product sells for between N7,200 and N7,500 depending on the brand and location. “This is a city where the price of a 50kg bag went for as high as N12,000 and N13,000 in some cases in February and March,” Samuel Chikwendu said.

He added that the prices of other building materials, especially iron rods, have also dropped considerably which is why, he said, activities are picking up again at construction sites.

The story is slightly different in Owerri, the capital of Imo State, where Innocent Okonkwo told our reporter that low demand was also driving the price drop, adding that a 50kg bag was selling for N9,000 on the average in the state.

Sundry market observers are optimistic of further price reductions, but they remain cautious as manufacturers, wholesalers, and retailers continue to play critical roles in setting prices for end-users.

They lament, however, that despite Nigeria’s status as one of the largest producers of cement in Africa, the price of the product continues to rise, particularly in the face of high inflation impacting the building materials market generally.

Okpala in Abuja highlighted the variations arising from direct sourcing from manufacturers versus procurement through dealers, with traders holding old stocks selling products at prices ranging from N8,500, N8,300 to N8,000 per bag.

Lucy Nwachukwu, another dealer in Abuja, pointed out the significance of procurement volume in determining cement costs, noting that stability in prices has been observed over the past month, with the product retailing for between N7,000 and N7,800 depending on the brand.

Read also: Dangote Cement, Nestle, GTCO, Zenith, MTNN, others hold superior returns -Coronation Research

Kabir Rabiu, the Group Executive Director of BUA Group, in an interview on Aries TV, emphasized the commitment of manufacturers to prioritize the needs of Nigerian consumers, stressing the importance of addressing the role of middlemen in the pricing equation.

It should be noted, however, that the collective efforts of manufacturers, wholesalers, retailers, and governmental bodies remain imperative in ensuring continued affordability and accessibility of cement for all Nigerians.

News

Simon Ekpa: FG’s attempt to extradite self acclimated freedom fighter may hit brickwall

Published

17 minutes ago

November 24, 2024

Kayode Sanni-Arewa

The Federal Government’s attempt to extradite pro-Biafra agitator Simon Ekpa, from Finland to face terrorism charges in Nigeria may hit brickwall.

According to The Africa Report, this is due to Finnish legal restrictions.

The self-declared prime minister of the Biafra Government In Exile (BRIGE) was arrested alongside four others by Finland’s National Bureau of Investigation (NBI) over terrorism related activities.

The Finnish police said they suspect that Mr Ekpa “has contributed to violence and crimes against civilians in South-eastern Nigeria.”

Nigeria’s defence chief, General Christopher Musa while reacting to the arrest, said the country will proceed to push for Ekpa’s extradition to Nigeria.

While Finland has confirmed Ekpa’s arrest, the country made it clear that, according to Finnish law, the country will not extradite its nationals outside the European Union or Nordic countries.

This further complicates Nigeria’s request since there is no extradition treaty between the two countries.

Even though Finland and Nigeria are in contact, the legal framework prohibits the transfer of citizens for trial in non-EU countries.

According to reports, everything has to be done according to Finnish legislation, which has very strong protections for freedom of speech

“The issue of an extradition treaty is very fundamental. If there is no extradition treaty between the two countries, there can be no legal basis or justification for extraditing Ekpa,” a Lagos-based lawyer Festus Ogun said.

Vince Onyekwelu, former British Police Officer and National Security Risk Strategist said the chances of Ekpa’s extradition to Nigeria are also slim.

Onyekwelu said while appearing on Arise TV:

“Professionally speaking, the Finnish Authorities have done their due diligence and have every right to arrest Simon Ekpa. It is left for the court to look into the request by the Chief of Defence Staff to extradite Ekpa to Nigeria. However, with the absence of an extradition treaty between Nigeria and Finland, Ekpa’s extradition will seem unlikely.”

News

Minimum wage: Yobe Gov approves N70k for workers

Published

17 minutes ago

November 24, 2024

Kayode Sanni-Arewa

Yobe State Governor, Hon. Mai Mala Buni has approved the payment of N70,000 minimum wage to civil servants in the state effective December 2024.

This is contained in a memo signed by the governor, following recommendations by the committee on Minimum wage constituted by the state government.

The committee had recommended for a reconciliation of local government finances to ensure a hitch free transition process of the local government councils from the existing salary structure to the new minimum wage.

The reconciliation process which is nearing completion is expected to be concluded soon for approval, and quick enrolment of the local government employees into the new minimum wage salary structure.

According to a statement signed by the spokesman to the governor, Mamman Mohammed, the Government expects civil servants in the state to reciprocate the gesture by putting in their best to ensure effective and efficient service delivery

News

Retired 85-year-old Col bags P.hd

Published

22 minutes ago

November 24, 2024

Kayode Sanni-Arewa

A retired Colonel of the Nigerian Army, Bolaji Titilola Onafowokan, aged 85, is among the first set of doctoral degree students produced by the Tai Solarin University of Education, TASUED, Ijagun, Ijebu Ode, Ogun State.

The Vice Chancellor, Prof. Oluwole Banjo, disclosed this at the weekend, while briefing the press on activities to mark the 16th convocation ceremony of the university.

He said the first set of PhD holders to be produced by the institution totalled 67.

“I am happy to inform you that the university will, at this 16th convocation ceremony, graduate its first set of doctoral degree holders.

“They are 67 in number and the list included a retired Army Colonel, Bolaji Titilola Onafowokan, who is 85 years old. And he is getting his PhD in Educational Technology.

“I salute his courage and doggedness to pursue this dream of his. Even younger ones shy away from this kind of task.

27 First Class
“Also, out of the 4,140 graduating students, 27 have first class. We are also graduating 4 M.Phil, 275 Master’s degree and our best graduating student is Adedeji A. Adedamola with CGPA of 4.91.

“We are also giving honorary degrees to four distinguished Nigerians namely: Dr Taiwo Olayinka Afolabi, Prince Oluyemisi Adedoyin Shyllon, Otunba Jaiyeola Wasiu and Engineer Jubril Dotun Sanusi,” he stated.

Prof. Banjo, who is winding down his tenure as the VC of the first university of education in Nigeria, added that some projects would be inaugurated by the Visitor, Governor Dapo Abiodun.
“We are happy to say that within the last one year, we have done some projects to add to what we have on ground. We have expanded the Medical Centre and the fund used was from our internally generated revenue.

“We are also weaning ourselves of epileptic power supply as we have our own Independent Power Project. It is 800 kva which can be scaled up.

“Even as it is, it is enough for our needs. It is less expensive than what we pay monthly as electricity bills to the power firm serving this area,” he said.

The VC also disclosed that the Minister of Communication, Innovation and Digital Economy, Dr Bosun Tijani, would deliver the convocation lecture titled, “From classroom to cloud: Leveraging digital literacy for national development.”

Vanguard News