Despite producing far more cement than it consumes, Nigeria continues to rank among the most expensive countries in Africa to purchase the building material, raising concerns over housing costs and infrastructure development.
Nigeria’s cement industry is led by Dangote Cement, BUA Cement, and HBM Nigeria Plc, with an estimated annual production capacity of between 60 and 65 million metric tonnes. As new production plants come on stream, the country’s total capacity is projected to increase to about 85 million metric tonnes in the coming years.
However, local demand is estimated at only 25 to 30 million metric tonnes annually, leaving a substantial surplus that is exported to neighbouring countries.
Recent market surveys indicate that cement prices have dropped slightly from the record highs recorded earlier this year, when a 50kg bag sold for over ₦13,000 in some parts of the country. Even with the slight decline, retail prices remain significantly higher than those in many other African nations.
Industry comparisons show that cement sells for considerably less in countries such as South Africa, Egypt, Kenya, and Ghana, prompting renewed calls for measures to make the product more affordable for Nigerians.
Manufacturers argue that the high cost of production is the major reason prices remain elevated. Although key raw materials such as limestone are sourced locally, companies still rely on imported machinery, spare parts, packaging materials, and industrial additives, all of which have become more expensive due to the depreciation of the naira.
They also point to rising energy costs following the removal of fuel subsidies, explaining that cement manufacturing depends heavily on gas, coal, diesel, and other energy sources.
Transportation is another significant factor, as many cement factories are located far from major markets. Industry operators estimate that logistics account for between 30 and 40 percent of the final retail price.
Other contributors to the high cost include inflation, maintenance expenses, financing costs, and sustained demand driven by housing construction and infrastructure projects.
The Federal Government has also expressed concern over the rising cost of cement and is exploring measures aimed at making the product more affordable for consumers.
