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Nigerians groan as cement price skyrockets to N6,500 per bag amid forex woes, inflation

Nigerians groan as cement price skyrockets to N6,500 per bag amid forex woes, inflation
Just over two months, there has been a significant surge in the retail price of cement in Nigeria. Formerly N5,000 per bag in December 2023, the cost has escalated to N6,500 in different parts of the country
Investigations reveal that the Cement Manufacturers Association of Nigeria (CMAN) has increased prices by over N1,000 per bag for respective brands.
As a result, retail prices have surged to N6,200 or higher in Lagos and the Southwest, while in the Southeast and Abuja, they have surged to as much as N6,500 or even more.
Major cement producers in Nigeria
According to Leadership, the cement industry in Nigeria is primarily dominated by three key players. Leading the pack is Dangote Cement Plc, which holds a commanding 60.6% market share.
Dangote Cement has an impressive local installed capacity of 29.3 million MT.
Following closely behind is Lafarge Africa Plc, with a 21.8% market share and a production capacity of 10.5 million MT. Completing the trio is BUA Group, accounting for 17.6% of the market share.
Cost of blocks affected by cement price hikes
The latest changes in the market have affected the pricing of concrete blocks significantly. Manufacturers have responded by revising their prices, resulting in an increase in the cost of a six-inch block from N450 to N500 and a rise in the price of a nine-inch block from N550 to N600 per unit.
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Moreover, there has been a notable uptick in the price of ready-mix concrete, and the expenses related to in-situ concrete production are anticipated to increase substantially.
This surge in costs is expected to worsen the economic challenges, leading to higher prices for new homes, elevated rental rates, and increased maintenance costs.
Consumers lament rising cost
Last year, Abdulsamad Rabiu, the chairman of BUA Group, announced a reduction in the cost of a bag of BUA cement from N5,000 to N3,500.
While the announcement was well received, many Nigerians quickly mounted pressure on Dangote Cement to also do the same, but the company declined, insisting that its product sold for far less than in other African countries.
Despite Rabiu’s announcement of a price reduction, investigations showed that retailers were still selling at higher prices, citing expenses along the supply chain.
The recent spike in the price of the product has generated serious concern amongst retailers, builders, block moulders and even average consumers.
Speaking with Legit.ng, Micah Akinloye, PRO of Akerele Block Manufacturers Association, expressed concern over the persistent increase in cement prices, highlighting its adverse impact on association members’ production output and income.
He said:
Cement prices have become so expensive and it is affecting how much we can make from the production of blocks. This has also affected how lucrative block production used to be. Because the hike in cement prices and every other building materials in the market, patronage has become very low.
Akinloye appealed to the Federal Government to intervene by issuing additional licenses to industrialists for cement production.
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In 2023, the Cement Producers Association of Nigeria cautioned about the Federal Government’s proposal to implement concrete roads, forecasting a potential increase in cement price to N9,000 per bag from the current N5,000 price.
In a statement, they also urged the current administration to take decisive action to resolve the recurrent issue of cement price hikes by promoting wider involvement in the cement industry.
They emphasized that Nigerians should not have to pay more than N5,600 per bag for cement.
Builders ask FG to slash cement price
In related news, Legit.ng reported that the Lagos Chapter of the Nigerian Institute of Building has called on the federal government to intervene and lower the cement price in the country.
The institute stated this at a briefing in Lagos state ahead of its 32nd Builders Conference tagged “Safe and Sustainable Building Production Management.”
They attributed the skyrocketing cement prices to poor foreign exchange, adding that this has taken a toll on producers.
Nigerians groan as cement price skyrockets to N6,500 per bag amid forex woes, inflation
News
Why governors’ forum is silent on Rivers emergency, by DG

Why governors’ forum is silent on Rivers emergency, by DG
The Nigeria Governors’ Forum (NGF) yesterday attributed its neutral position on the recent declaration of a state of emergency in Rivers State to the need to steer clear of taking positions that may alienate members with varying political interests.
Taking positions on contentious partisan issues, the NGF said, would not augur well for it, especially in view of its past experience in fundamental division.
Notwithstanding, the declaration of the state of emergency by President Bola Tinubu yesterday generated more kudos and knocks from across the country.
Special Adviser to the President on Senate Matters, Senator Basheer Lado, said the action of the president was meant to ensure protection of lives and restoration of law and order in the state, while the President’s Special Adviser on Media and Public Communications, Sunday Dare, said his principal was required to “avert needless harm and destruction .”
National Publicity Secretary of the ruling All Progressives Congress (APC), Felix Morka, said Tinubu, by his action, cleared what had manifested as a constitutional crisis in Rivers state.
But former President Goodluck Jonathan saw it from a different perspective.
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He described “abuse of office and power by the three arms of government in the country“ as a dent on Nigeria’s image.
The NGF, in a statement by its Director General Abdulateef Shittu, said it is essentially “an umbrella body for sub-national governments to promote unified policy positions and collaborate with relevant stakeholders in pursuit of sustainable socio-economic growth and the well-being of the people.”
It added: “As a technical and policy hub comprising governors elected on different platforms, the body elects to steer clear of taking positions that may alienate members with varying political interests.
“In whatever language it is written, taking positions on contentious partisan issues would mean a poor sense of history — just a few years after the forum survived a fundamental division following political differences among its members.
“Regardless, the Forum is reputed for its bold positions on governance and general policy matters of profound consequences, such as wages, taxes, education and universal healthcare, among others.”
It asked for “the understanding of the public and the media, confident that appropriate platforms and crisis management mechanisms would take care of any such issues.”
Why governors’ forum is silent on Rivers emergency, by DG
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Rivers: Tinubu acted to save state, economy, says Karimi

Rivers: Tinubu acted to save state, economy, says Karimi
Chairman of the Senate Services Sunday Karimi has hailed President Bola Tinubu for the decision to declare a state of emergency in Rivers State.
He told reporters on Friday in Abuja that the President acted in the best interest of the State and Nigeria, having taken his decision in compliance with the Constitution.
“No President or government worth a name, will fold its arms and watch a political situation deteriorate to what we saw unfolding in Rivers State.
“We saw that bombing of pipelines had begun, and the security situation was getting worse with the tension everywhere”, Karimi stated.
Karimi, who represents Kogi-West on the ticket of the All Progressives Congress (APC), recalled the “fatherly role” Tinubu had played in the crisis since 2023 in a bid to get the Minister of the Federal Capital Territory (FCT), Nyesom Wike, and suspended Governor Siminalayi Fubara to reach an understanding, to no avail.
He explained: “We were all here in 2023 when Mr President called that truce meeting at the Aso Rock Villa. There was the eight-point agenda for settlement reached between the factions.
“When Nigerians expected that progress should be made to achieve peace, things started deteriorating considerably to a point where the governor demolished the House of Assembly building and administered the state with only three legislators.”
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Karimi observed that with the recent judgment of the Supreme Court, which gave the upper hand to the 27 lawmakers loyal to the camp of the FCT Minister, matters merely got worse in the State as the lawmakers were set to impeach the Governor.
“What did you expect would be the implications? There would have been more destruction, killings and economic losses for the country.
“With the bombings that had already started, it was a matter of time before the whole state would be engulfed in flames. No responsible President would sit, arms folded, and allow that to happen “ he added.
The senator further argued that it took “painstaking efforts” by the administration to raise daily crude oil production to around 1,800 barrels, noting that Nigeria’s economy was already “witnessing a rebound under the renewed hope projects of the government.”
“Allowing the situation in Rivers to get worse before he would act, wouldn’t have helped the state or Nigeria as a country in any way.
“Mr. President intervened at the right time, and his actions are covered by law,” he said.
Karimi also spoke on the emergency declaration in Borno, Yobe, Adamawa and a couple of other states by former President Goodluck Jonathan without removing the Governors from office or suspending the state assemblies.
According to him, the case with those States was not generated by political crises but rather security concerns.
“So, I will advise those comparing the two scenarios to remember that one was purely about security threats resulting from the insurgency caused by Boko Haram, while that of Rivers is clearly political.
“It was the proper thing to do to suspend the political actors in the two factions to allow for tensions to diffuse. Nigerians should appreciate the President for the action he has taken so far,” he stated.
Sen. Karimi also noted that there was no cause for alarm as the National Assembly had indicated that the emergency rule could be reviewed as soon as there were signs that things could quickly normalise in Rivers State.
Rivers: Tinubu acted to save state, economy, says Karimi
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Just in: Tinubu swears in Rivers Sole Administrator Ibas

Just in: Tinubu swears in Rivers Sole Administrator Ibok-ete Ibas
President Bola Tinubu has sworn in Vice Vice Admiral Ibok-ete Ibas (Retd.) as the Sole Administrator of Rivers State.
The administrator was sworn in on Wednesday after a short meeting with the President.
Tinubu announced the appointment of the retired naval chief at a nationwide broadcast on Tuesday, when he declared a state of emergency in Rivers State and suspended Governor Siminalayi Fubara, Deputy Governor, Ngozi Odu, and the state House of Assembly members.
The President said his decision was based on Section 305 of the 1999 Constitution, saying he could not continue to watch the political situation in Rivers escalate without taking concrete action.
The suspension of Fubara and other elected representatives has been rejected and condemned by many eminent Nigerians, legal luminaries, groups such as Atiku Abubakar, Peter Obi, Femi Falana, the Labour Party (LP), the Peoples Democratic Party (PDP) and the Nigerian Bar Association.
However, the emergency rule has been praised by the pro-Nyesom Wike Assembly led by Martins Amaewhule, accusing Fubara of contravening the Supreme Court ruling on the political situation in the state.
Ibas was the Chief of Naval Staff from 2015 to 2021.
He is from Cross River State where he had his early education.
The new sole administrator went to the Nigerian Defence Academy in 1979 from where he proceeded to have a successful career in the Navy, rising through the ranks to the very top.
He is a member of the Nigerian Institute of International Affairs (NIIA) and the Nigerian Institute of Management.
President Muhammadu Buhari who appointed him as Chief of Naval Staff conferred him with the National Honour of Commander of the Federal Republic (CFR) in 2022.
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