By Peace Erewunmi

The high cost of cement in Nigeria has continued to generate public concern, with a recent comparison showing that a 50kg bag of cement sells for about ₦15,000 in Nigeria, compared to approximately ₦4,500 in Egypt and ₦6,500 in Kenya. Industry experts say the difference is driven by a combination of economic, structural, and policy-related factors rather than a single cause.

One of the major reasons for Nigeria’s higher cement prices is the rising cost of production. Cement manufacturing requires large amounts of energy, and many Nigerian producers rely on expensive alternatives such as diesel, gas, and coal due to the country’s unstable electricity supply. These higher energy costs are ultimately passed on to consumers.

Another factor is the depreciation of the naira. Although limestone—the primary raw material for cement—is abundant in Nigeria, manufacturers still import machinery, spare parts, industrial chemicals, and other production inputs. The weakening of the naira has significantly increased the cost of importing these items, raising overall production expenses.

Transportation and logistics also contribute substantially to the final retail price. Poor road infrastructure, high fuel prices, vehicle maintenance costs, and insecurity along major transport routes make it more expensive to move cement from factories to distributors and retailers across the country.

Analysts also point to limited market competition within Nigeria’s cement industry. A few major manufacturers dominate the market, leading some consumer groups and economists to argue that greater competition could help lower prices. Cement producers, however, maintain that prices primarily reflect the high cost of doing business rather than market concentration.

In contrast, countries such as Egypt benefit from lower energy costs, better transport infrastructure, and larger export-oriented production capacity. Kenya also enjoys relatively more stable production costs and a competitive market environment, factors that help keep retail prices lower than those in Nigeria.

The Federal Government has repeatedly engaged cement manufacturers over the rising prices. Authorities have encouraged producers to increase production capacity, improve supply, and explore measures that could make cement more affordable, especially as the country seeks to expand housing and infrastructure development.

Industry stakeholders argue that lasting reductions in cement prices will require broader economic reforms. These include improving electricity supply, stabilising the exchange rate, upgrading transport infrastructure, lowering logistics costs, and creating a more business-friendly manufacturing environment.

As Nigeria continues to invest heavily in roads, housing, and other infrastructure projects, the affordability of cement remains a critical issue. Experts say reducing production costs and improving market efficiency will be essential to making construction materials more accessible to businesses and ordinary Nigerians.