The price of bagged cement in Lagos has risen sharply overnight, according to reports in The Nation. A 50kg bag now retails for between NGN2200 and NGN2300 (US$7-7.30), a rise of around 40 per cent on previous prices.
Kunle Awobodu, vice-president of the Nigeria Institute of Building (NIOB), said: “Clients, contractors and quantity surveyors may have disagreements due to price variations. New price on old contracts in a competitive bidding may eventually lead to sub-standardisation in construction.”
Members of the Cement Manufacturers Association of Nigeria (CMAN) have together taken the step of raising prices. The body represents a number of companies, including Dangote, Lafarge WAPCO, Cement Company of Northern Nigeria, Ashakacem and United Cement. A representative of one of the firms said that the price rise was linked to the pressures facing producers.
These include falling capacity utilisation linked to fuel and electricity supply issues and inflationary pressures caused by the revaluation of the naira.
