Nigeria’s Cement Prices Remain Among Africa’s Highest Despite Production Surplus

Despite producing more cement than it consumes, Nigeria continues to record some of the highest cement prices in Africa, with a 50kg bag selling for between ₦12,500 and ₦15,000 in major cities including Abuja, Lagos and Abia.

Nigeria has an installed cement production capacity of over 60 million metric tonnes annually, while domestic demand stands at only 25–30 million tonnes, leaving a significant surplus for export to neighbouring countries.

The industry is dominated by Dangote Cement, BUA Cement, and Lafarge Africa, which collectively generated more than ₦6.53 trillion in revenue and ₦1.65 trillion in after-tax profit in 2025.

In comparison, a 50kg bag of cement sells for about ₦6,000–₦7,000 in South Africa, ₦4,000–₦5,000 in Egypt, ₦6,500–₦7,500 in Kenya, and ₦7,000–₦8,000 in Ghana.

Manufacturers attribute the high prices to rising production costs driven by expensive energy, naira depreciation, imported equipment, inflation, and transportation challenges. They also argue that strong demand from housing and infrastructure projects has reduced pressure to lower prices.

However, housing experts and industry stakeholders insist that the current pricing is worsening Nigeria's housing deficit, estimated at over 16 million units, while increasing the cost of public infrastructure and private construction projects.

The Federal Government has announced plans to engage cement manufacturers in talks aimed at reducing prices. Minister of Works David Umahi said high cement costs are affecting road and infrastructure contracts and urged producers to expand capacity while making the product more affordable.

Stakeholders have also called for stronger regulatory oversight, improved competition, lower energy costs, better transport infrastructure, and policy incentives to encourage new entrants into the cement industry, with the goal of making cement more affordable for Nigerians.

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