Nigerians demand explanations from manufacturers over cement price hike

As experts peg fair factory-gate price at N7,000–N8,000

Nigerians, particularly home builders and built environment professionals, have intensified calls for explanations from cement manufacturers over the sharp increase in the price of the commodity, with experts putting a fair factory-gate price of a 50-kilogramme bag at between N7,000 and N8,000.

The development has raised fresh concerns over pricing along the cement value chain, as consumers currently pay between N12,000 and N15,000 for a 50kg bag, depending on location.

The price represents an incredible increase from about N7,500 less than a year ago, despite Nigeria’s installed cement production capacity of more than 60 million metric tonnes and abundant limestone deposits.

Stakeholders said the development was particularly troubling given the country’s housing deficit, estimated at more than 15 million units, and ongoing efforts by the Federal Government to promote affordable housing.

An affordable housing advocate and architect, Mr. Ezekiel Nya-Etok, described the development as “deeply troubling,” arguing that Nigerians deserved to understand why the price of a basic construction material had risen so sharply.

“It is a quaestion that deserves an answer. I believe Nigerians—particularly the millions of citizens struggling to put a roof over their heads—are entitled to that answer,” he said.

Nya-Etok, who is also Executive Director, Estate Services, Federal Housing Authority, acknowledged that cement manufacturers needed to recover production costs, invest in plants, pay workers and provide reasonable returns to shareholders.

However, he said the demand for an explanation was about transparency, competition and affordability rather than opposition to legitimate business profits.

He called for a breakdown of the…