The price of a 50kg bag of cement has surged to approximately N13,000 in several retail stores in the Federal Capital Territory, and Enugu, indicating the impact of inflation within the country.
Investigation revealed that factory price on a bag of cement for retailers was sold at N8,500, and the price hike was attributed to the increase by wholesalers reselling to retailers and the escalating inflation rates.
Checks by one of our correspondents on Thursday at retail shops along Airport Road revealed that since December 2023, the price had risen from around N5,000 to N5,500 and later to N9,000, with no sign of abating.
Another market survey conducted on Friday and Saturday in Karu, Jahi and Lugbe area of Abuja indicated that a 50kg bag of cement was between N10,000 to N13,000.
At Lugbe, the retailers confirmed that Dangote Cement and BUA Cement prices are N10,000 and N13,000, respectively.
A retailer, Victor Adewuyi, on Saturday, said, โAt Timber Market in Lugbe, the product is sold between N10,000 and N13,000 depending on the customer negotiating ability, while at Jahi, it is sold at N11,000.
โIn addition, people are exaggerating the price of cement and saying it is at N15,000. It has not got to N15,000 yet.โ
A developer in Karu confirmed that cement price had risen to N13,000.
In Enugu, cement is said to be at N13,000 as well.
โCement now selling at N13,000.00 in Enugu,โ The Chief Executive Officer, Land Repblic, Dr Victor Adegbile, disclosed.
Real estate developers have also corroborated the concerning increase, observing that a 50kg bag of cement is being sold at retail prices ranging from N9,000 to N10,000 in areas such as Lagos, Adamawa, Ondo, Oyo State, among others.
The development has affected the prices of sandcrete blocks, forcing block makers to review their prices from N450 to N500 for a six-inch block and N600 from N550 for a nine-inch block.
Further findings showed that prices of sand, nails, roofing sheets, window and door frames, wood, iron rods and many more had also hit the rooftop with suppliers blaming foreign exchange, transport, and logistics costs.
A 10mm iron rod that used to cost N520,000 has increased to N550,000 while a trailer load of granite now costs N47,000 with transportation.
Accordingly, labour prices have gone up, with artisans that earlier charged between N3,500 to N4,000 per day last year, now charging N9,000 depending on the location.
Another factor influencing these charges is the transportation costs incurred to reach the construction site.
Speaking on the current situation, the Chief Executive Officer of Samak Properties and Development Company Limited, Sam Akanbi, lamented the increase, stressing that the surge in the prices of building materials had forced project owners to review contract conditions.
He added that the situation had forced insolvent developers to stop work or continue construction at a loss.
Akanbi said, โAbout three weeks ago, I bought cement for a small project at the cost of N5,000 but now, the same product currently sells for N8,200 and that is even depending on where you get them. And we are getting reports that the price is not likely to come down soon.โ
Decrying the situation in a post on the Housing Development Advocacy Group, the Chief Executive Officer, Octo5 Holdings Limited, Babajide Odusolu, said, โA greater cause of concern to me is the insane spike in reinforcement prices. It galloped from 600k per tonne to N980,000 per tonne within two weeks.
โUnless we urgently innovate and redesign lightweight buildings, we risk higher levels of building collapse as cutting corners will soon be redefined as a survival strategy.โ
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