Cement hits N9,500 per bag in Lagos after BUA crashed price to N3,500

A 50kg bag of cement now costs around N9500 in many Lagos retail locations, compounding the country’s inflationary consequences.

Nairametrics checks in several retail establishments in Lagos reveal that the price has risen since January from around N6,000 to N6,500 to above N9000 as of today.

Some retailers have halted sales due to the product’s irregular price increases, worrying that prices may grow in the near future.

A cement retailer in Ikorodu who asked to remain nameless stated that he has stopped selling since Monday and is still waiting for his distributor to supply the updated price.

He stated, “I stopped selling around Monday, my distributor has not given me new market price. She told me to wait for now.”

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.

According to her, “January and February is our peak sales period but everywhere is just quiet. N9000 for a bag of cement is too expensive and would discourage people from starting any project.”

BUA’s N3,500 per bag mere lip service

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.

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