Cement price crisis deepens in states, Abuja

Hopes of lower construction costs by prospective homeowners may have been dashed, going by fresh increase in price of cement and related products.

The increase has already triggered ripple effect in the open market, where prices have gone up by as much as 60 per cent in recent weeks. The rising prices have also worsened construction costs in a sector, reeling under pressure from disruptive policies and ineffective housing supply.

The Guardian investigation revealed that the export of the product to neigbouring countries, despite huge domestic demand, may be responsible for the shortage.

The Federal Government recently granted Dangote Cement and BUA permission to transport products across the border, despite closure. Cement and by-products in neigbouring countries command higher prices.

Distributors hinted that there was increase of ex-factory prices due to economic realities, which prompted many dealers to change prices. For instance, Dangote Cement increased its ex-factory price to N3, 050 due to logistics and production cost.

However, other sources also attributed the scarcity to machine breakdown in one of the major player’s plant, which had been fixed, and industrial strike by cement truck drivers for improved welfare.

But the Executive Secretary, Cement Manufacturing Association (CMAN), Mr. James Salako, disagreed. He said no manufacturer had increased price of cement.

The Guardian investigation further shows that prices of cement and associated products.