News
Current Cement Prices: Dangote, BUA, and Others This Week
Cement prices in Nigeria have remained volatile due to a combination of local and global economic pressures, infrastructural challenges, government policies, and market-specific dynamics. This price unpredictability affects key sectors like construction and real estate, where stable cement prices are critical to project planning and execution.
Factors Contributing to Cement Price Fluctuation
1. High Production Costs
Cement production in Nigeria is capital- and energy-intensive, with significant costs associated with raw materials and energy:
Energy Costs: The reliance on diesel and gas generators due to erratic electricity supply inflates production costs.
Raw Materials: Despite Nigeria’s abundant limestone reserves, mining and transportation costs are high due to inadequate infrastructure and security challenges.
2. Limited Industry Competition
Nigeria’s cement industry is dominated by a few major players: Dangote Cement, BUA Cement, and Lafarge. This oligopoly structure reduces competitive pricing:
High Entry Barriers: Capital-intensive investments deter new entrants.
Import Restrictions: Policies limiting cement imports strengthen local manufacturers’ market control, restricting competition and enabling price manipulation.
3. Logistics and Transportation Challenges
Poor infrastructure and security issues increase transportation costs:
Road Infrastructure: Bad roads lead to delays and higher fuel consumption, with costs passed to consumers.
Insecurity: In regions like the North, insecurity increases logistical risks, raising costs for manufacturers and distributors.
4. Exchange Rate Volatility
The naira’s fluctuating value against foreign currencies impacts the cost of imported machinery, spare parts, and raw materials. These costs are often offset by frequent adjustments in cement prices.
5. Demand-Supply Imbalance
High demand driven by urbanization, population growth, and government infrastructure projects often outstrips domestic supply:
Periodic Shortages: Insufficient production capacity leads to supply gaps.
Import Restrictions: Policies aimed at promoting local production reduce overall supply, contributing to higher prices.
6. Taxes and Levies
Cement manufacturers face significant taxes and levies, which are typically transferred to consumers through increased prices.
7. Market Speculation and Hoarding
Speculative practices further destabilize prices:
Hoarding: Distributors hoard cement to create artificial scarcity, driving up prices.
Speculation: Rumors about policy changes or supply disruptions lead to panic buying.
8. Infrastructure Deficiencies
Nigeria’s infrastructure issues exacerbate supply chain inefficiencies:
Port Congestion: Delays at ports affect the timely import of production inputs.
Storage Facilities: Limited storage for raw materials and finished goods contributes to supply shortages during peak demand periods.
9. Global Economic Trends
External events like the COVID-19 pandemic and the Russia-Ukraine war have disrupted supply chains and increased the cost of key production inputs like gypsum and coal, amplifying local price instability.
10. Security Challenges
Security concerns, particularly in mining regions, affect raw material availability and increase risks along distribution routes, inflating overall costs.
Current Cement Prices in Nigeria (Week Overview)
Cement Type | Price (₦ per 50kg bag) |
---|---|
Dangote Cement | ₦9,400 (varies by location) |
BUA Cement | ₦7,700 |
POP (Plaster of Paris) Cement | ₦9,700 |
Lafarge Waterproof Cement | ₦8,900 |
Water Shield High-Quality Cement | ₦12,000 |
Recommendations for Addressing Price Instability
A multi-pronged approach is essential to stabilize cement prices and ensure sustainable growth in Nigeria’s construction and real estate sectors:
Improve Infrastructure: Upgrading roads, ports, and storage facilities will reduce transportation and logistical costs.
Foster Competition: Encourage new entrants by reducing capital barriers and revisiting import restrictions to increase supply options.
Stabilize Exchange Rates: Strengthening the naira through sound fiscal policies will lower the cost of imported inputs.
Enhance Energy Supply: Investing in reliable electricity infrastructure will reduce reliance on expensive generators.
Regulate Taxes and Levies: Introducing tax reliefs for cement manufacturers can reduce production costs and lower market prices.
Without these interventions, cement prices in Nigeria are likely to remain unstable, posing significant challenges to the nation’s development agenda.
News
Gov Adeleke Speaks On Death Sentence For Chicken Thief
Osun State Governor, Ademola Adeleke, has stepped in to call for immediate action in the case of Segun Olowookere, an indigene who was sentenced to death for stealing a fowl.
Recall Segun’s mother, Folashade Olowookere, emotionally shared the story of her son, who is currently imprisoned, during an interview on Nollywood actress Biola Adebayo’s YouTube podcast. The video gained significant attention, including from Governor Adeleke.
Naijablitznews reports this was contained in a statement from the Governor’s spokesperson, Olawale Rasheed, Adeleke directed a swift investigation and ordered that steps be taken for a potential pardon in Segun’s case. The Governor further instructed the Attorney General to ensure Segun is considered for the prerogative of mercy before the year ends.
The statement read, “I have reviewed the case and acknowledge the importance of the separation of powers in our democracy. In this instance, I have instructed the Commissioner for Justice to begin the process of granting mercy to this young man.
“Osun is a state of justice and fairness. We must uphold the protection of lives and ensure equity.
“I want to assure the public that this matter is receiving my personal attention, and we are acting with urgency as a responsible government.”
News
Delta Assembly pardons two suspended members
The Delta State House of Assembly, on Tuesday, recalled two of its members that were suspended in November over alleged gross misconduct.
The News Agency of Nigeria reports that the recall was announced during plenary in Asaba by the Speaker, Mr Dennis Guwor.
Recall that the Assembly had on November 6 suspended Mr Dafe Chukudi (PDP-Ukwuani) for 14 legislative days over alleged gross misconduct, while Mr Oboro Preyor (PDP-Bomadi) was also suspended for 14 legislative days for the same offense on November 12.
“Dear colleagues, following the allegation of gross misconduct against our suspended members and subsequently, a committee on investigation headed by the Deputy Speaker, Mr Arthur Akpowowo, was set up.
“The committee has commenced investigation. However, the 14 days that they were suspended has elapsed. And by the confidence you all reposed in me as the Speaker of the state House of Assembly, and now that the 14 days of their suspension has elapsed, there is need to recall Mr Dafe Chukudi and Mr Oboro Preyor to resume their duties as members going forward.
“The suspended members are hereby recalled pending on the outcome of their investigative committee.”
Meanwhile, the Deputy Speaker, Mr Arthur Akpowowo, expressed joy over the recall of the lawmakers, saying, “I am very happy that we have lifted their suspension.
“The Speaker has recalled them so that they can celebrate the Christmas with joy and even enter the New Year with some relief of happiness. For me, this is a party gift for me even though I’m not affected.”
News
Heavy Security Presence at National Assembly as President Tinubu Presents 2025 Budget
By Gloria Ikibah
Ahead of President Bola Ahmed Tinubu’s presentation of the 2025 Appropriation Bill to a joint session of the Senate and House of Representatives at 12 noon today, there is tight security at the National Assembly Complex in Abuja.
As early as 6.00 a.m., operatives of the Department of State Security (DSS) and other security agencies, including the Police, Civil Defence, Federal Road Safety Corps, and Sergeant-at-Arms, were stationed at the gates and within the premises to ensure order and safety during the event.
Naijablitznews.com reports that staff of the National Assembly were directed to stay home, except those required for the event, who were instructed to report before 8.00 a.m., according to a memo issued by the Director of Human Resources and Staff Development.
Senators and House members were seen arriving at the Green Chamber, where the joint session is scheduled to take place. On Tuesday, during a closed-door plenary, the House of Representatives followed the tradition of moving a motion to allow non-members into the chamber for the session.
Naijablitznews.com recalled that the Federal Executive Council (FEC) approved an estimated expenditure of N47.96 trillion for the 2025 fiscal year during its meeting on Monday.
Meanwhile, business activities within the National Assembly complex, including banking and food services, have been suspended following directives from the Assembly’s management. Only those on an approved list, including staff, media personnel, and members of the press corps, are allowed access after identification at the gate.
The joint session will be presided over by Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas.
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