How Much Is A Bag Of Cement In Nigeria?
The cost of a bag of cement in Nigeria has increased dramatically in the last six months. It has risen from N3,200 to N4,600 in Abuja and Enugu. The increase is not unrelated to the general inflation trend in the country. However, the price increase may be out of proportion to the overall cost of production and logistics.
Price of cement
The price of a bag of cement in Nigeria has been fluctuating over the last few months, rising from N3,200 to N4,600 in less than six months. The price in the major cities like Abuja and Enugu has remained relatively constant while in other parts of the country the price has increased. Though there are many cement manufacturers in Nigeria, there are only a few that have carved a niche for themselves in the market.
One of the biggest challenges facing the cement industry in Nigeria is the constant fluctuation in price. Since cement is a local product, prices in different regions of the country are not consistent. For example, cement is priced differently in Lagos than in Kano. Therefore, it’s important to remember to always add an additional N200 to the price before making your purchase.
The price of cement in Nigeria is increasing because of the cost of production and distribution. Increasing costs have forced cement manufacturers to raise prices in order to remain profitable. Furthermore, the country’s power supply has also contributed to the increase in the price of cement in Nigeria.
Brands of cement
There are a number of different brands of cement available in Nigeria. Many of these brands are highly regarded because of their consistent quality. As a result, they are widely used in the construction and house building industry in Nigeria. Nevertheless, you have to choose carefully because not all brands of cement are equal.
The largest cement manufacturing company in Nigeria is Dangote Cement Plc. The company has an installed capacity of 29.3 million tonnes (Mt). This makes it the market leader, with 60.6% of the market share. Other prominent brands include Lafarge Africa Plc, BUA Group and Ibeto Cement. The last two brands have an established presence in Nigeria.
Another cement brand in Nigeria is Eagle cement. This brand is owned by Eagle Cement Corporation Nigeria. Eagle cement is sold in different parts of the country. Its price varies between N2,500 and N2,600 a bag.
Cost of production
Cement prices in Nigeria fluctuate wildly and are hard to predict. Those who need cement for construction projects in Nigeria must monitor the price changes closely to avoid being caught off guard. Cement bags account for a large share of construction costs in Nigeria today. The federal government is under pressure to encourage local investment in cement production.
The cost of cement production in Nigeria is high because of several factors, including the lack of stable electricity supply in the country. Electricity shortages in the country have forced cement manufacturers to resort to alternative power sources, which are costly to operate daily. The price of cement in Nigeria is also driven by the cost of distributing it.
The World Bank reports that cement prices in Africa are almost twice as high as the global average, according to Joachim MacEbong, an analyst at the consultancy SBM Intelligence. The cost of cement production in Nigeria is significantly higher than in other African countries. The high costs of cement have prompted legislators to call for the reform of the cement industry in Nigeria. The legislators noted that the inflated prices are hindering the construction that is required for economic recovery.
Cost of logistics
A bag of cement in Nigeria can cost over N3,400, with the price of the product rising in recent months. Cement dealers blame the rise on the cost of logistics. These costs are not included in the price of cement, but are included in the costs that cement retailers incurred once the bag was bought.
The cost of logistics for a bag of cement in the country depends on the distance from the supplier to the destination. A bag of cement requires a minimum of 240km of road travel. However, this distance isn’t an issue if the cement is delivered by rail. The Kano-Katsina-Jibir-Maradi rail will soon have a branch in Sokoto, making rail transport of cement much cheaper.
The cost of logistics for a bag of cement in the country varies from state to state. Cement is transported in trailer loads, each containing 600 or 900 bags. As such, the price of a bag of cement is highly correlated to its location.