Nigeria, known for its extreme tropical climate and distinct dry and rainy seasons, has seen a surge in the construction of sturdy cement houses, surpassing traditional wooden structures.
The country’s weather conditions, which don’t fully support wooden buildings, have contributed to this shift towards cement structures, proving to be a lucrative venture for real estate investors.
Cement, a cornerstone commodity in Nigeria’s booming real estate market, has become increasingly in demand and competitive. It serves as a vital binder in construction projects, ranging from residential buildings to infrastructure like roads, and is derived from materials such as limestone, clay, shells, and chalk.
Recently, government officials including Doris Uzoka-Anite, Minister of Industry, Trade and Investment, and David Umahi, Minister of Works, have expressed concerns over the rising prices of cement across the nation. Despite Nigeria’s status as Africa’s most populous nation and a major producer of locally sourced cement materials, the unjustifiable increase in prices has sparked debate.
Within Nigeria’s cement industry, various companies vie for dominance, with some gaining recognition for their effectiveness and reliability in construction. BusinessDay’s market survey sheds light on these companies and their pricing strategies.
Dangote Cement Plc, spearheaded by Aliko Dangote, Africa’s wealthiest individual, stands as Nigeria’s premier cement manufacturer and distributor. Despite its widespread popularity and reputation for durability, concerns have been raised over its pricing, with calls for a reduction below the current market rate of N12,500 per 50kg bag.
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Lafarge Africa Plc, known for its ‘Elephant Cement’ brand, follows closely behind Dangote Cement. Renowned for its durability, Lafarge cement remains a popular choice among builders, despite price fluctuations ranging between N12,000 to N14,000 per 50kg bag.
BUA Cement Plc, a subsidiary of the BUA Group owned by Abdulsamad Rabiu, offers affordability without compromising quality. Despite industry-wide price hikes, BUA Cement maintains its status as one of Nigeria’s most cost-effective options, priced between N10,000 to N11,000 per 50kg bag.
Ibeto Cement, part of the Ibeto Group, also provides an affordable alternative, with prices ranging similarly to BUA Cement.
United Cement Company of Nigeria Limited (UniCem), another Lafarge Group brand, caters to eastern Nigeria’s construction needs. With prices ranging between N12,000 to N14,000 per 50kg bag, UniCem remains a preferred choice for various applications.
In a bid to address affordability concerns and bridge the gap between socioeconomic classes, the Manufacturers Association of Nigeria has pledged to halve cement prices, pending government intervention. This move aims to make homeownership more accessible to average Nigerians, aligning with broader initiatives to promote inclusive economic growth and development.