Cement Brand Retail Price (per 50kg bag) Wholesale Price (600 bags)
Dangote Cement ₦2,570 ₦1,510,000
Elephant Cement(WAPCO) ₦2,550 ₦1,470,000
Ashaka Cement ₦2,550 ₦1,470,000
Ibeto Cement ₦2,550 ₦1,500,000
Eagle Cement ₦2,550 ₦1,470,000
BUA Cement ₦2,550 ₦1,470,000
UNICEM ₦2,550 ₦1,480,000
How much is a bag of cement in Nigeria?
As of present, the retail price of cement in Nigeria is ₦2,550 — ₦2,800 per bag, depending on brand, location, and other factors. And the wholesale price (600 bags) is ₦1,470,000 to ₦1,510,000, depending on the manufacturer.
Why the price of cement in Nigeria fluctuates endlessly and keeps increasing
The frequent fluctuations in cement prices in the country are due to a number of worrisome factors, which are making business difficult for cement manufacturers in the country. While some of these factors can be easily controlled by the manufacturers themselves, others are totally beyond their control. Here are some of the factors responsible for the ever-increasing and unstable prices of cement in Nigeria, despite the ban on importation of cement into the country.
High maintenance costs:
Because cement manufacturing involves heavy duty machinery and huge facilities, the cost of maintenance can be very high. This makes the day-to-day running of cement manufacturing plants very expensive. And to remain profitable, manufacturers have to increase prices.
High distribution costs:
When it comes to distributing and delivering goods, it’s common knowledge that cost of delivery is directly proportional to the weight of conveyed goods. This explains why manufacturers spend heavily to distribute the commodity, which is quite heavy due to its nature and composition. This explains why most manufacturers prefer to establish their plants in locations close to their target customers, and why most plants cover only proximal geographical area
Erratic power supply:
This is an age-long problem in Nigeria that plagues every aspect of the country’s economy. So, it’s quite expectable that it will significantly affect cement production in the country, which requires heavy duty automated machinery that are powered electrically. Due to the epileptic power supply in Nigeria, cement manufacturers depend on expensive alternative sources of power, and this results in high overhead costs, and ultimately, increased product prices.
other factors responsible for unstable cement prices in Nigeria include technological inadequacies on the part of the manufacturers as well as constraints in buying power of consumers caused by the harsh state of the Nigerian economy.
Major players in the Nigerian cement industry
Dangote Cement Plc
Manufacturer of the popular Dangote cement and the present biggest player in the Nigerian cement market, Dangote Cement Plc is owned by the Dangote Group, which was founded by Alhaji Aliko Dangote. The company was founded as Obajana Cement Plc in 1992, but later had its name changed to Dangote Cement Plc in July 2010. The company, which is presently the largest listed on the Nigerian Stock Exchange engages in the production and distribution of cement in Nigeria and other African countries including Congo, Senegal, Tanzania, South Africa, Cameroun, Ghana, Zambia, Sierra Leone, Liberia, Ivory Coast, and Ethiopia.
The company’s manufacturing plant in Obajana, Kogi state is the largest in Africa, with a production capacity of 10.25mmtpa. The company also has plants in Obeshe, Ogun state (4mmtpa) and Gboko, Benue State (4mmtpa). Outside Nigeria, Dangote Cement also has cement manufacturing plants in a number of other African countries.
Lafarge Cement WAPCO Nigeria
Another big player in the Nigerian cement market, Lafarge group facilitates the production of about 12mmtpa of cement in Nigeria, which is expected to hit 18mmtpa by 2020. The company has plants in Ogun state (3 WAPCO plants producing a total of 4.5mmtpa), Gombe state (Ashaka cement plant producing 1mmtpa), Cross River state (United Cement Company of Nigeria plant producing 2.5mmtpa), and Rivers State (Atlas cement company).
Aside cement, Lafarge also processes and distributes concrete and other construction aggregates. The company’s operation in Nigeria is under the control of the parent company LafargeHolcim, a French-Swiss company headquartered in Paris, France.
Other major cement manufacturers in Nigerian include BUA cement group and Ibeto cement.