.png)
.png)
3 weeks ago
11
- Cement prices successful Nigeria person gone up again, hardly weeks aft the national authorities issued a directive to clang prices
- Surveys amusement that the prices person accrued crossed Dangote, Bua and Lafarge cements, successful antithetic locations
- Contractors person lamented the abrupt alteration successful price, complaining that it could stall enactment connected ongoing projects
Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.
Cement prices successful Nigeria person accrued again, contempt promises from the antithetic manufacturers to trim the prices.
This summation trickles down to impact the costs of gathering and operation materials, arsenic good arsenic the outgo of buying oregon renting existent property properties.
Just past month, cement prices sold betwixt N10,000 and N15,000 for a 50kg bag, triggering a gathering betwixt national authorities officials and representatives of the antithetic manufacturers, aft which they promised to trim the prices.
Source: UGC
In an unexpected twist, the prices person present gone up again, with gathering contractors disquieted astir however this affects them.
Cement manufacturers springiness reasons for terms hike
The gathering with the national authorities representatives and the cement manufacturers revealed the reasons for the terms summation crossed antithetic cement brands.
They identified issues specified arsenic atrocious roadworthy infrastructure, rising petrol and energy costs, overseas speech volatility, among others, arsenic the reasons for the expanding terms of cement.
The Minister of Works, Dave Umahi, urged the cement manufacturers to trim the price to betwixt N7,000 and N8,000 per 50kg bag.
Umahi noted that the speech complaint had stabilized astir N1,500/$, and petrol costs were besides crashing, promising that the authorities would hole large roads crossed the country.
The gathering ended with the manufacturers agreeing to clang the price, provided the issues raised were addressed, and they reduced the terms to N9,000 instantly successful a amusement of bully faith.
Barely a period after, cement prices person gone up again.
New cement prices successful the market
Major dealers accidental a 50kg container of Dangote Cement, which sold for N9,000, is present sold betwixt N9,400 and N9,600 successful Abuja.
In Lagos state, dealers merchantability the 50kg container of Dangote Cement for astir N9,500, and this could beryllium negotiated to N9,400 depending connected quantity.
Dangote Cement controls implicit 61% marketplace stock of the cement manufacture successful Nigeria, and this summation comes with implications for builders and spot developers.
The Authority reports that BUA Cement, which controls implicit 20% and Lafarge Africa, which controls astir 18%, person besides accrued their prices successful a akin move.
Contractors respond to the terms change
A contractor who spoke to Legit.ng lamented the interaction of the terms alteration connected ongoing projects. Engineer Fred Osayande noted that contractors would suffer superior money for projects that had been secured astatine the erstwhile price.
Source: Getty Images
He explained that N400 alteration successful terms could construe to N400 cardinal nonaccomplishment for a contractor that needs 1 cardinal bags of cement for a project.
He said;
"Don't beryllium amazed to spot uncompleted projects summation now, due to the fact that sometime erstwhile a contractor has nary mode to implicit the task owed to terms changes, helium has nary prime but to stall the project"Cement makers grounds emergence successful accumulation costs
In related news, Nigeria’s apical cement companies spent astir N3.64 trillion connected accumulation costs successful 2024.
This was owed to rising ostentation and the weakening of the naira, which made overseas speech much expensive, and it marked a 72% summation from the N2.12 trillion recorded successful 2023.
The cardinal cement producers—Dangote Cement Plc, Lafarge Africa Plc, and BUA Cement Plc—saw a important emergence successful expenses, including accumulation costs, administrative expenses, and organisation costs.
PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!
Source: Legit.ng
