Update On Dangote Cement Price Today, 28th February 2024: Market Challenges Persist

The Nigerian cement market continues to grapple with persistently high prices, standing at an average of N12,000 per 50kg bag, despite government intervention threats to allow imports if manufacturers do not reduce prices.

A recent BusinessDay survey reveals that Dangote Cement is retailing at N12,500, while Lafarge ranges from N12,000 to N14,000, and BUA is priced between N10,000 and N11,000 per bag. Ibeto Cement and UniCem fall within the range of N10,000 to N14,000. Despite a federal government meeting with cement producers agreeing to price caps between N7,000 and N8,000, challenges such as expensive gas, high import duties on spare parts, poor road networks, high foreign exchange rates, and cement smuggling to neighboring nations continue to impact pricing.

The Minister of Housing and Urban Development, Ahmed Dangiwa, expressed dissatisfaction, questioning the manufacturers' rationale, especially considering the abundance of local raw materials. Dangiwa warned of potential border openings for cement imports if prices remain high, citing the alarming increase in cement and building material costs over the past months.

The rising costs have significantly affected Nigeria's real estate and housing sector, leading to project delays and a slowdown in construction activities. Developers are grappling with uncertainty due to the soaring costs of essential building materials. CONTINUE READING.....

In response to the manufacturers' challenges, Minister Dangiwa emphasized the need for lower prices given the local sourcing of raw materials. He highlighted the broader implications for housing delivery, emphasizing that increased building material costs inevitably lead to higher house prices, exacerbating the housing crisis.

As the government contemplates opening borders for cement imports, the situation reflects the broader challenge of balancing domestic industry interests with the imperative of affordability in critical sectors like housing. The 2002 backward integration policy, credited with expanding production capacity, is under scrutiny, with stakeholders calling for a reassessment to address the current supply-demand gap.

This scenario underscores the complex factors influencing construction material costs in Nigeria, including infrastructure development, foreign exchange rates, and smuggling. A comprehensive strategy is needed to address these challenges, recognizing the pivotal role of Nigeria's cement sector in meeting the demands of a growing population and advancing economic development.

While government and manufacturers seek a solution, ordinary Nigerians, like Vincent Ogili and others, bear the brunt of abrupt and significant price hikes. Ongoing dialogues among stakeholders are critical in charting a path forward to ensure the sustainability and affordability of essential building materials, particularly cement, in Nigeria's dynamic construction landscape.

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