By: Chioma Madonna Ndukwu
Cement production costs in Nigeria have surged by 121% due to Naira depreciation and high inflation. The situation is aggravated by smuggling to neighboring countries like Chad and Cameroon, where cement prices reach up to $150 per 50kg bag—far exceeding Nigeria’s N8,000.
Kabiru Rabiu of BUA Cement highlighted the impact of smuggling, stating, “One of the pressures that we see is that there is a lot of illegal smuggling of export of cement to Cameroon and Chad. What happens is that if you take cement just across the border to some of these markets, it is selling at $150 to $270.”
Despite a significant 84.5% revenue increase for major manufacturers in Q1’24, the rise in production costs has led to a 4.1% drop in profits. Builders and block moulders are urging the government to reduce import duties, with NABMON President Mr. Adesegun Banjoko noting, “The price of one bag of cement in Nigeria, currently in the region of N8,000 and N9,000, was still considered too expensive.”
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