Complains galore as cement price rises by 44 per cent, now N2,300 per bag

– The struggling Nigerian economy has affected the price of cement products

– Manufacturers of the products have increased the price by 44%

– The increase in cement price is a setback for low-income prospective homeowners 

Like everything in present day Nigeria, the price of cement all over the country has gone up by 44% with a bag selling for N2,300.

The development has already triggered a ripple effect in the open market, The Guardian reports.

Nigeria’s minister of trade and investment, Okechi Enelamah

In order to meet up with their production costs, operators under the Cement Manufacturers Association of Nigeria (CMAN) have raised prices of brands by N600 per bag in factories, including additional N100 cost for haulage.

This has increased retail prices from N1,600 to N2,300 depending on location. In some areas, prices have shot up to N21,350 or higher.

Members of the CMAN include Dangote Cement Plc, Lafarge Cement WAPCO Plc; Cement Company of Northern Nigeria Plc; Ashakacem Plc and Cross-River based United Cement Company.

The high price of cement is a setback for low income earners who have plans to be home owners

READ ALSO: 5 challenges Nigeria’s small businesses face daily

“This is going to create crisis in the construction sector and bad blood between clients and contractors, as developers will make claims for fluctuations.

“Invariably, it will lead to upward reviews of contract sums. New and on-going projects will be delayed until there is agreement on the contract variations. It can also expedite construction activities because of the anticipation of further increase,” vice president, Nigerian Institute of Building, Kunle Awobodu noted.

According to an unnamed official in one of the cement manufacturing companies, the hike is not unconnected to difficult operating environment as Nigeria battles with recession.

Cement manufacturers have had to contend with:

1. Dwindling capacity utilisation of their plants due to disruptions in gas supply

2. The high cost of Automotive Gasoline Oil (AGO), known as diesel, which used to sell between N110 to N130 per litre (now N200 per litre)

3. Balancing rising input cost pressures

Some of the input cost pressures being encountered by many manufacturers are:

1. Foreign exchange losses on dollar loans

2. Inability to access foreign exchange

3. High cost of production

4. Poor electricity supply and tariff hike

5. Prolonged gas supply shortages.

READ ALSO: CBN under pressure as dollars remains scarce after naira devaluation

Meanwhile, stakeholders in Nigeria’s oil and gas industry recently declared that Nigeria is no longer a good destination for investment in the sector.

They opined that Nigeria’s operating environment has become a high-risk environment that is not suitable for any going concern.

In a related development, renowned economist and businessman, Mr Atedo Peterside has predicted that the recession currently experienced in Nigeria will last for a long time.

Peterside who is also the President & Founder of Anap Foundation said business confidence is low and investors are holding back on investing in Nigeria.

The post Complains galore as cement price rises by 44 per cent, now N2,300 per bag appeared first on Nigeria News today & Breaking news | Read Naij.com 24/7.