The nations’ housing sector is not out of the woods yet, as prices of cement continue to rise in the building materials market.
The development has triggered a surge in housing prices and the overall cost of construction projects. Aside from the cost of land, to develop a moderately furnished one-bedroom apartment would cost about N3 million.
From December 2020 to November 2021, cement prices rose by 44 per cent impacting prices of other products like blocks, rings and others, which utilise cement as a major ingredient for production.
Within the past six months, the price of cement rose from N3, 200 to N4, 600. The Guardian’s market survey in locations like Abuja, Ogun, Osun, Imo, Rivers, Anambra, Lagos, Oyo, Enugu states among others last week revealed that the price for a 50kg bag hovers around N3, 800 and N4, 600 respectively.
A dealer of the products, Mr. Sunday Ilesanmi, who confirmed the development said the latest increase is from the factory.
Ilesanmi said: “The price of cement has been fluctuating lately but since the price went up, it has remained high. It is also a known fact that whenever the festive period approaches, prices of cement usually go up. Despite the increase, people are still buying because they don’t have an alternative.”
Another dealer, Mr. Ebenezer Nwosu, said although there was no particular reason attributed to the escalating prices from the producers, he stressed that it is not unconnected with the inflation trend in the country, which has impacted the prices of goods and services across board.
Source close one of the manufacturers attributed the hike to several challenges such as rising cost of materials, rising prices of gas, cost of distribution, increasing cost of servicing equipment like cement plants, electricity issues and other operational impediments.
The source said forces of demand and supply have also been a main driver of price realities in states. But industry experts say getting a lower price for cement is the best way to lower the cost of building construction.
Speaking on the development, the Chairman, Faculty of Estate Agency and Marketing, a business division of the Nigerian lnstitution of Estate Surveyors and Valuers (NIESV), Mr. Kayode Ogunji, observed that a major problem facing the manufacturing sector is that when a particular product is on higher demand, people play with the price.
He said the ever-fluctuating foreign exchange rate is a factor threatening the cement sector. Ogunji said: “There is a lot of construction work on-going across the states, the federal and individual levels. As a result of that there is no alternative to cement, yet the quantity is less than the market demands and so there is bound to be an increase in prices. I won’t be surprised by January 2022; there may be another price regime.
“Until we are able to produce in excess, price might not fall. We have the materials in the country and despite the operations of the major players; we haven’t reached the sufficiency level. There should be expansion of production capacity by those producers. If they produce more, the prices might crash. We still need more people to be involved in the production of cement because children yet unborn will still need houses to live and they are not going to sleep under the bridge.”
Regrettably, he said, Nigeria is not ripe for the kind of building construction in Western world, where they don’t use more cement but prefabrication of buildings and wooden housing.
According to him, the current market reality will reflect on the cost of construction, as developers might have to pass the cost also to homebuyers and those renting houses.
He urged the government to encourage people to go into research and production of alternative to cement in the construction sector.
A past chairman, Nigerian Institute of Building (NIOB) Lagos Chapter, Mr. Adelaja Adekanmbi, called for improved capacity and production to reduce price increases.
Adekanmbi, who is also the NIOB general secretary, lamented that the system of construction in Nigeria is largely concrete -based, unlike in places like the United States of America, the United Kingdom and other countries that use wood for building houses, adding that there should be deliberate efforts to reduce the price of cement.
He noted that it is becoming difficult to have a low-income housing with increasing price of cement and iron rods in the market.
The former NIOB boss said: “This implies that there will be deficiency in housing production and it will be very difficult for the poor to build houses. The technology needed to go into other ways of construction in our building industry has not been exhausted and it has become an issue. “
Cost of Cement per Bag in Nigeria Today (2021)
The rate at which cement prices in Nigeria change these days without prior notice, concerned Engineers, Builders Quantity Surveyors and Developers are left with no other option than to follow the trend of cost fluctuations so as to keep tenders and quotations current. This is because, most of the houses constructed in Nigeria make use of a good number of cement bags from Sub structure to Super structure and this therefore contribute a reasonable quota in the cost of building projects today.
In the Nigerian Architecture, Engineering and Construction (AEC) industry, the most popular cement produced by top cement manufacturing companies in Nigeria is the Ordinary Portland Cement and it is mostly used as a masonry adhesive or binding material in combination with fine and coarse aggregates in a given mix ratio to reduce cost of Mortar used for molding, laying of blocks, plastering of walls etc or in Concrete for casting of beams, columns, slabs, pavements, embankments, etc.
It is important you know the Grade of the cement you intend to buy so that you can achieve the required result. The grade shows the minimum Compressive strength (N/mm2 or MPa) attainable by the cement after 28 days of setting. The standard grades for Odinary Portland Cement (OPC) is Grade 43 and Grade 53 which are obtained by grinding and mixing OPC Clinker alongside little amount of Gypsum.
Most Nigerian cement brands meet up with the grading requirement. For example, a 50kg bag of Dangote cement has a grading score of 42.5-grade cement, its BlocMaster, the premium high strength Portland limestone cement in particular attains up to 50mpa in compressive strength after 28 days.
Other cement producers like Ibeto and Bua group also meet up with the 42.5-grade minimum standard for general purpose use as stipulated by Standard Organisation of Nigeria (SON). It is necessary to check for the quality of cements before you make an order for retail or wholesale supplies. Don’t forget to also check if the cement has expired or not.
Price of Cement in Nigeria
Having given you the checklist for buying Cement, the next thing is to decide which brand to go for based on your purchasing power or preference. Depending on cost of production and and logistics, these companies have slightly different prices from one another in various depots across the country. How much a 50kg bag of cement costs in Port Harcourt is not the same price dealers sell it in Abuja, Lagos, Benin City or other States in Nigeria. Even at that, the average cost of a bag of cement in Nigeria today is ₦3,750 for retail quantities and ₦2,200 for wholesale quantities (Trailer load). Note: a Trailer or Truck load consists of 600 bags of cement. Check below to see the updated price list of cements in Nigeria for the month of December 2021.
Current price of Cement in Nigeria Today
Cement Company 50kg Bag Retail Price 600 bags Wholesale Price
Dangote Cement ₦4,100 ₦1,500,000
Lafarge Cement ₦4,000 ₦1,400,000
Ibeto Cement ₦3,950 ₦1,450,000
Ashaka Cement ₦3,900 ₦1,400,00
BUA Cement ₦3,300 ₦1,380,000
Eagle Cement ₦3,500 ₦1,200,000
UNICEM ₦3,850 ₦1,350,000
As we strive to update you with the most accurate figures offered by these various brands, if you notice any discrepancy, contact us or leave us a comment with the current price below.
Top Cement Manufacturers / Producers in Nigeria
Here is a brief review of major cement companies in Nigeria.
1. Dangote Cement
The multinational company known as Dangote Cement Plc is a leading indigenous cement company in Sub-Saharan Africa, championing cement sales in up to 10 countries of the region with its chairman being the business man and Billionaire, Aliko Dangote . It was founded in 1992 as Obajana Cement Plc and got renamed in 2010. Presently, the company boasts of the largest cement producer in Sub-Saharan Africa with with its annual production capacity of 48.6 million tonnes, having about 3 cement factories in Nigeria, one in Senegal and another in Tanzania. The product distribution cut across markets in African countries like Senegal, Tanzania, South Africa, Ethiopia, Gabon, Congo, Nigeria, Ivory Coast, Ghana, Togo, Cameroon, Zambia, Liberia and more. Its headquarters is in Lagos.
Dangote Cement has been sold as the best Cement in Nigeria and hence, widely distributed across every nook and cranny of the country as the builders choice. It is equally the most expensive cement currently in Nigeria with presence in every building material dealers’ warehouse.
2. Elephant / Lafarge Cement
Lafarge is a French-Swiss company dealing on cement production alongside sale of Concrete solutions and quarry of coarse aggregates. Its former CEO, Joseph-Auguste Pavin de Lafarge founded it in 1833 with headquaters in Paris, France. Its parent company is LafargeHolcim, in Nigeria, it is best known as Elephant Cement and happens to be the second most popular cement across the country just after Dangote. It has WAPCO cement factory in Ewekoro, Sagamu and Ogun state in the South West and Ashaka in the North East of Nigeria with current cement production capacity of 10.5MTPA. So also the United Cement company and Atlas company in the South South states of Cross River and Rivers respectively.
3. Ibeto Cement
Ibeto is a cement company indigenous to Nigeria and founded by its CEO/Chairman, Dr. Cletus Madubugwu Ibeto. The company began operation in 1997 when the CEO stopped importation of bagged cements from PortLand following Federal Governments ban on packaged cement. Today, Ibeto has reinforced his manufacturing plants which accounts for increased production capacity that runs in millions of metric tonnes per annum, thereby stretching his storage capacity to over 50,000kg per annum.
Over the years, counting from 2005 when production started, Ibeto cement has amassed a loyal customer base both in Nigeria and the world at large.
4. Ashaka Cement
This is a subsidiary of Lafarge cement that is headquartered in Gombe, Northern Nigeria, the name Ashaka is coined from the location in the North where the manufacturing plant was sited.
5. BUA Cement
BUA Cement has severally been marketed as the second largest cement producer just after Dangote with an annual production capacity of more than 2 million tons. The King of Strength Cement has some production plants in Edo and Sokoto States. Apart from early strength attainment of its two major products, BUA plc prides itself as a brand with rapid setting and low heat of hydration.
BUA group ventured into cement business in 2008 just after receiving license from FG to import into Nigeria.
6. Eagle Cement
Eagle is one of the top cement manufacturing companies in Nigeria that is owned by the Philippine. It started as far back as 1995 and has since gone international to become one of the best selling in Naija.
Share this latest price with every potential house owner you know, they will be grateful to you.