Cement prices have skyrocketed to between N7, 000 and ₦9,500 per 50 kilogramme bag in major building materials markets, leaving consumers and construction firms reeling from the sudden spike.
Cement prices have skyrocketed to between N7, 000 and ₦9,500 per 50 kilogramme bag in major building materials markets, leaving consumers and construction firms reeling from the sudden spike..…..CONTINUE READING>>>>>>
The latest development has heightened tension among developers, prospective homeowners and professionals within the property market. This discrepancy in prices has also led to confusion among consumers and industry players, with many questioning the rationale behind the unprecedented increase in prices.
Several distributors attributed the surge in prices to a halt in production by cement companies. According to them, cement companies have ceased production and are now focused on selling off existing stockpiles. A prominent Dangote cement distributor in Lagos told The Guardian that distributors have been instructed to refrain from purchasing new stock.
He elaborated, stating that the company’s strategy is to exhaust current inventories before implementing new pricing structures for future production.
The distributor, who pleaded anonymity, shed light on the motives behind the sudden cessation of production, saying, “The company wants to sell out all their productions and set new prices for new cement production.”
Meanwhile, retailers have echoed a different sentiment regarding the price increase, pointing to increased costs in materials for cement production as the primary driver. The abrupt increase in cement prices is already being felt across various sectors, particularly in the construction industry, where rising costs threaten to disrupt ongoing projects and inflate budgets.
As stakeholders grapple with the implications of this development, calls for transparency and accountability from cement companies have grown louder, with demands for clear explanations regarding the factors influencing pricing decisions.
Amid the uncertainty, consumers and businesses are bracing themselves for further turbulence in the cement market, hoping for swift resolutions to alleviate the financial strain imposed by the current price regime.
Speaking with The Guardian, a distributor in Lagos, Mr Ojo Olanrewaju, denied allegations that the retailers were responsible for the fresh increases in cement prices but revealed that they peg their prices based on what they got from producers.
“Operational expenses of manufacturers and cost of transportation of the product also influence the price of cement. We all know how costly it is now to move goods than it was one and half years ago. What retail outlets sell is based on how much we purchase the product from the producers. Some of us add N500 or less to it to maximise profit,” he said.
A retailer of the product in Lafuwape, Ogun State, Mrs Kemi Odunta, disclosed that she last sold a 50kg bag at N7,000, observing that persistent rise in the price of the product has made some retailers to temporarily stop selling. “I don’t have any product in stock currently as there are fears of another increase in prices soon. If there is a fresh increase, it will affect sales and so I believe that it is better to study the market and exercise caution,” she said.
Another retailer, Mr Sunday Ilesanmi, said the high cost of fuel, particularly diesel, is affecting the cement production and supply value chain.
However, he emphasised that although cement price has increased, it should not be up to N9, 500. He said the product still sells at N7, 500 per bag, adding that those selling at N9,000 and N9, 500 are greedy and dubious by deliberately inflating the cost.
“Everybody behaves as they like, there is no price control and the price of cement is not stable. Some have formed the habit of selling at the amount he or she wants. Now, it is whoever has the product that determines the price, which shouldn’t be. Government supposed to fix the price of cement, and other essential products.”
On patronage, he said:” The rich people are buying cement now even if you call the price N1 billion, the rich will still buy, and it is only the poor Nigerians that won’t be able to afford it.”…..CONTINUE READING>>>>>>
