By Rukevwe Odeh

Nigeria continues to face soaring cement prices despite producing far more cement than it consumes, raising fresh concerns over the cost of housing and infrastructure development across the country.

Across major cities such as Lagos, Abuja and Aba, a 50-kilogram bag of cement currently sells for between ₦12,500 and ₦15,000. The price is significantly higher than what consumers pay in several other African countries, where similar products are sold at much lower rates despite lower production capacities.

Nigeria’s cement industry, dominated by major manufacturers including Dangote Cement, BUA Cement and Lafarge Africa, has an installed production capacity exceeding 60 million metric tonnes annually. Domestic demand, however, is estimated at only 25 to 30 million tonnes, leaving a substantial production surplus that is also exported to neighbouring countries.

Industry operators argue that local production does not automatically translate into cheaper prices. They point to rising energy costs, dependence on imported machinery and spare parts, exchange rate pressures, inflation, and expensive transportation as major factors driving up production and distribution costs. According to manufacturers, logistics alone account for a significant share of the final retail price.

The Federal Government has expressed concern over the persistent increase in cement prices. Minister of Works David Umahi recently announced plans to engage cement manufacturers, stressing that the high cost of the commodity is putting pressure on public infrastructure projects and increasing contract costs. He also urged producers to expand their production capacity to support ongoing national development initiatives.

Experts warn that expensive cement continues to worsen Nigeria’s housing shortage by making residential construction more expensive for developers and individuals. They argue that affordable building materials are essential if the country is to reduce its housing deficit and improve access to decent homes.

Stakeholders have recommended measures including encouraging more competition within the cement industry, improving transportation infrastructure, ensuring stable electricity supply, reducing energy costs, and strengthening regulatory oversight to discourage excessive pricing. Some also want government incentives for new investors and lower import costs for critical manufacturing equipment to help reduce production expenses.

Real estate professionals maintain that while Nigeria has achieved remarkable growth in cement production, consumers are yet to enjoy the expected benefits of lower prices. They insist that reforms aimed at boosting competition and improving market transparency could help make cement more affordable and support the country’s housing and infrastructure goals.