The price of a 50kg bag of cement has soared to around N9500 in many retail outlets in Lagos further exacerbating the effects of inflation in the country.
Checks by TheWitness in many retail shops in Lagos reveals that since January, the price has risen from around N6,000 to N6,500 to over N9000 as of today.
The sporadic rise in the price of the product has made some retailers halt selling fearing they might see increased prices in the near future.
A cement retailer in Ikorodu who wished to remain anonymous told TheWitness that he has stopped selling since this Monday and still waiting for his distributor to provide the current price.
Another retailer lamented about the increase in the price on sales stating that there has been a significant drop in sales since January when the volatility in cement prices began.
The increase in the price of cement cuts across major cement producers in Nigeria- Dangote cement on the average sold for N9,500. On the other hand, BUA cement retailed for N9,000 while some shops sold Elephant cement for N9,500.
Of particular interest is the increase in the price of BUA cement whose Chairman, Abdulsamad Rabiu had stated that the company will peg the price of BUA cement at N3,500 after a meeting with President Tinubu in October.
The increase in the price of cement syncs with a projection by Cardinal stone that stated that the price of cement will stay high in 2024 due to producers increased operational cost.
In its financial report for Q3, 2023, Dangote cement recorded an increase of 33% in operation expenses when compared to the previous year.
An earlier statement by the Cement Producers Association of Nigeria had warned that cement prices may hit N9,000 from around N5000 then over the federal government’s insistence on building roads with concrete.
