The Nigerian cement market is dominated by three players – Dangote Cement, Lafarge Africa Plc and BUA Cement.
Currently, there is a huge difference in the ex-factory price of cement and the retail market price.
The price of a 50kg bag of cement initially rose from N2,500 to N3,600 in November 2020. However, the price of the same product has shot up this year. A 50kg bag now sells between N4,000 and N4,700 depending on the location.
In Kano, Dangote sold for N4,500, BUA N4,700 and Lafarge cost N4,450 for 50kg.
In Maiduguri, the Borno State capital, Dangote sold for N4,500 and Lafarge N4,100. BUA, which has not supplied the product in the last two weeks, last sold for N3,500 per bag.
In Lagos, a 50kg bag sold for between N4,100 and N4,300. Market survey conducted in Bwari, AMAC, Kwali, Kuje and Gwagwalada -FCT, reveals a price range of N3,900 and N4,000 for a 50kg bag.
Despite the surge in the profits of cement manufacturers in the country, the end price of the commodity has continued an upward surge in the last 18 months.
Consequently, the rising price of cement is causing a sharp increase in the cost of building development.
The trio of Dangote Cement, BUA Cement and Lafarge Cement reported a combined N469 billion profit-before-tax for the third quarter of 2021.
Dangote cement topped the gainers with at N331.6 billion, BUA at N74.1 billion and Lafarge at N63.6 billion for the nine months period. These companies were able to increase their revenue by 30.10% from N1.1 trillion generated within nine months in 2020 to N1.4 trillion this year.
Chairman of the BUA Group, Alhaji Abdulsamad Rabiu, had, in an interaction with journalists earlier in the year blamed “Simple economics of supply and demand,” for the rising price of cement in the country.
He said Nigeria was not producing enough cement commensurate with its population and the product’s demand.
“Look at the numbers: Nigeria is over 200 million people today in terms of population. If you look at the production of cement, last year, we were under 30 million metric tonnes.
Question:
Can I please ask this question?
What is the price of a 50kg bag of cement in your location (In Nigeria)?
