By Monalisa Idahosa
The cost of cement in Nigeria has surged drastically, rising by over 100% within the last year. A 50kg bag, previously priced at ₦4,000, now costs between ₦8,800 and ₦9,300, depending on the brand and location. This increase has compounded challenges for the real estate and construction industries, already grappling with inflation and naira devaluation.
Iron rods, a crucial building material, have seen similar price hikes. Prices have climbed from ₦800,000 per ton in early 2023 to over ₦1.6 million per ton. Paint products have also doubled, with prices increasing from ₦23,000–₦25,000 to ₦46,000–₦50,000 per container
Economic policies, particularly currency devaluation, are at the center of these hikes. The naira’s depreciation from ₦460 to $1 in 2023 to approximately ₦1,700 to $1 in 2024 has directly affected the cost of imported materials. As most construction inputs, including iron rods, are imported, these currency shifts significantly impact pricing
Lafarge Africa Transitions Ownership
Adding to the construction sector’s turmoil, Lafarge Africa is undergoing a significant transformation. Holcim AG recently announced the sale of its 83.8% stake in Lafarge to Huaxin Cement, a Chinese conglomerate. This $1 billion deal, slated for completion in 2025, could reshape Nigeria’s cement market. Analysts suggest that if Huaxin Cement retains Lafarge Africa on the Nigerian Exchange Limited, it might double the company’s market capitalization
The move is part of Huaxin Cement’s global expansion strategy, potentially introducing new dynamics into the Nigerian cement industry. The acquisition aligns with China’s Belt and Road Initiative, which fosters infrastructure partnerships across Africa.
Challenges in the Real Estate Sector
The construction industry has urged the Nigerian government to address these challenges. Osilama Osilama, Vice President of the Real Estate Developers Association of Nigeria, emphasized the need for policy reviews. He highlighted that increasing the budget for the Nigeria Building and Road Research Institute could enable local production of essential materials, mitigating reliance on costly imports.
While efforts to reduce cement prices have yielded minimal results in some regions, including northern states where prices recently fell slightly, cement price continue to go upward. Cement prices in these areas now range from ₦8,000 to ₦9,000 per bag, down from as high as ₦10,500
