High Cement Prices Persist in Nigeria Despite Naira Strengthening

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Despite recent improvements in the Naira's value against foreign currencies, particularly evident in both the black market and official exchange rates, the cost of cement in Nigeria remains stubbornly high, sparking concerns among stakeholders in the real estate sector.

 The failure of the currency's appreciation to translate into lower cement prices has left potential homeowners and industry players frustrated, highlighting the persistent challenge of affordability in the construction industry.

 Real estate experts and investors have voiced their dismay over the unsustainable and unrealistic price levels, which continue to inflate project costs and impede investment prospects. Adeniji Adele, former president of FIABCI-Nigeria, has called for urgent measures to address the pricing issue, advocating for the liberalization of the cement market through the issuance of more manufacturing licenses to ramp up supply and meet growing demand.

 In a bid to tackle the problem, the Cement Producers Association of Nigeria (CPAN) has appealed to President Bola Tinubu to dismantle the existing cement production and distribution monopoly, proposing a review of the backward integration policy to foster a more competitive market environment. 

The current prices of major cement brands such as Dangote, Ibeto, Lafarge, and UNICEM range from N10,000 to N14,000 per 50kg bag, depending on the location, further exacerbating the affordability crisis in the construction sector.


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