Nigeria Crisis Unfolds: Cement Prices Skyrocket to N9500 in Lagos, Retailers Hit Pause Amid Economic Strain

The price of a 50kg bag of cement has skyrocketed to approximately N9500 in numerous retail outlets across Lagos, intensifying the impact of inflation in Nigeria. Investigations conducted by Nairametrics reveal a sharp increase in prices since January, rising from around N6,000 to over N9000 presently.

The abrupt surge has prompted some retailers to cease selling, apprehensive of potential further hikes. Retailers express concerns over dwindling sales, attributing the decline to exorbitant prices, with one lamenting the dampening effect on construction projects.

Despite BUA Cement's earlier pledge to maintain prices at N3,500 per bag, the reality contrasts sharply, with both Dangote Cement and BUA Cement retailing for N9,500 and N9,000, respectively. This surge aligns with Cardinal Stone's forecast of sustained high cement prices in 2024 due to increased operational costs for producers, as evidenced by Dangote Cement's 33% rise in operational expenses in Q3 2023.

Additionally, the Federal Government's preference for concrete in road construction further exacerbates concerns over cement price hikes, echoing warnings from the Cement Producers Association of Nigeria.