Leading manufacturers, including Dangote Cement and BUA Cement, have adjusted cement prices nationwide, with a bag now selling for as high as N12,000 in many parts of the country.

Industry operators say the latest increase marks another sharp jump from previous prices of between N11,000 and N11,500, deepening concerns about affordability and slowing construction activities.

Energy costs are driving the surge

Experts point to rising energy costs as the primary trigger behind the new pricing regime. Manufacturers are grappling with higher fuel prices, which directly impact production processes that rely heavily on energy.

Chairman of the Lagos Chamber of Commerce and Industry Construction and Engineering Group, Soji Adeniji, explained that the surge in fuel prices has significantly raised factory operating costs.

According to him, the increase in petrol prices from around N1,000 to nearly N1,900 per litre has placed additional pressure on cement producers, forcing them to pass on the cost to consumers.

Logistics and distribution add pressure

Beyond production, logistics has emerged as another major factor behind the price hike. The cost of transporting cement from factories to distributors and end users has climbed sharply, a report by Punch said.

Industry players note that there is now a clear price gap between factory pickup and delivered cement. While some buyers may access cement at lower rates directly from factories, delivery costs push retail prices significantly higher.

This growing disparity highlights how transportation expenses continue to shape final market prices.

Global factors are also at play

Stakeholders also link the rising prices to global developments, particularly tensions in the Middle East, which have disrupted energy markets worldwide.

These disruptions have cascading effects on input costs, further compounding the challenges faced by manufacturers already dealing with local economic pressures.

Builders feel the impact

For builders and developers, the sudden increase has come as a shock. Industry professionals say the spike is already affecting project timelines and budgets.

Architect Oluseyi Amusan noted that prices jumped within weeks, catching many buyers off guard.

He added that dealers often attribute such increases to rising fuel costs, though some industry observers believe manufacturers sometimes adjust prices ahead of market pressures.

Growing concerns over the construction slowdown

With cement being a critical building material, the sustained rise in prices is expected to dampen construction activities nationwide.

Operators warn that if the trend continues, it could lead to fewer projects, higher housing costs, and broader economic implications for Nigeria’s construction sector.