Business
Retailers Explain Price Drop In Cement Cost
The cement market, in the last couple of weeks, has seen a significant turnaround with prices tumbling from between N10,000 and N15,000 per 50kg bag to between N7,000 and N8,000.
The sudden rise in the prices of cement and other major building materials in February this year upsets the construction industry, especially in real estate, where many developers were forced to abandon building sites.
A recent market survey conducted by The Tide’s source in different locations across the country confirmed a price drop, ranging between N7,000 and N7,500 per bag, though BUA cement is selling for N7,500 to N7,800 per 50kg bag, depending on location.
Both entrepreneurs and major distributors who were interviewed, explained that the price drop is due to low demand and government’s intervention.
At the peak of the price hike, the Federal Government called a meeting with major producers where it was agreed that a bag of cement should be between for N7,000 to N8,000, depending on location.
But the producers did not comply with this agreement immediately, followin which “Nigerians stopped demanding for cement; many project sites were abandoned as developers sat back and waited for the prices to come down.
“So, what has happened is an inter-play of demand and supply with price responding, which is Economics at work”, Collins Okpala, a cement dealer, told the source in Abuja.
In the Nyanya area of the Federal Capital Territory, a 50-kg bag of Dangote cement now sells for between N7,000 and N7,500, while BUA cement sells for between N8,500 and N9,500, down from between N11,000 and N12,000 respectively.
In Lagos, the product has seen significant price drop too. In Ojo area of the state, Sebastin Ovie, a dealer, told our reporter that what has happened is a crash from the January price, attributing the crash to low demand and stronger naira.
“The current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand. This is a significant drop from the average of N12,000 which most dealers were selling in February and March”, he said.
A dealer in Agege area of the state who identified himself as Taofik Olateju, told the source that sales are picking up due to the drop in price.
He recalled that Nigerians at a point stopped buying due to the high price of the product at N15,000 per bag.
“I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly”, he said, confirming that the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.
Continuing, Olateju noted that “because the naira is now doing well against the dollar, it will be unreasonable for manufacturers to continue to sell the product at the old prices. I also believe that the federal government’s intervention and the threat to license more importers may have worked, leading to the reduction in price”.
In Enugu, the source reports that the product sells for between N7,200 and N7,500 depending on the brand and location.
“This is a city where the price of a 50kg bag went for as high as N12,000 and N13,000 in some cases in February and March”, Samuel Chikwendu said.
He added that the prices of other building materials, especially iron rods, have also dropped considerably which is why, he said, activities are picking up again at construction sites.
The story is slightly different in Owerri, the capital of Imo State, where Innocent Okonkwo told the source that low demand was also driving the price drop, adding that a 50kg bag was selling for N9,000 on the average in the state.
Sundry market observers are optimistic of further price reductions, but they remain cautious as manufacturers, wholesalers, and retailers continue to play critical roles in setting prices for end-users.
They lamented, however, that despite Nigeria’s status as one of the largest producers of cement in Africa, the price of the product continues to rise, particularly in the face of high inflation impacting the building materials market generally.
Okpala in Abuja highlighted the variations arising from direct sourcing from manufacturers versus procurement through dealers, with traders holding old stocks selling products at prices ranging from N8,500, N8,300 to N8,000 per bag.
Lucy Nwachukwu, another dealer in Abuja, said the significance of procurement volume in determining cement costs, noting that stability in prices has been observed over the past month, with the product retailing for between N7,000 and N7,800 depending on the brand.
In Port Harcourt also, a customer, Daniel Etteobong Effiong, said the price goes between N7500 to N8500, depending on the brand and the location one is buying from.
Business in Nigeria remain under pressure as a result of insecurity and erratic power supply which continue to stifle productivity in the country.
This is even as new data from the Central Bank of Nigeria (CBN) indicate sustained improvements in economic activity.
This was the response of businesses in the CBN’s October 2025 Business Expectations Survey (BES) and the Purchasing Managers’ Index (PMI) report.
While the PMI showed that economic activity expanded for the 11th consecutive month, the BES revealed that businesses are still grappling with crippling operational constraints that threaten to reverse recent macroeconomic gains.
According to the BES conducted between October 6 and 10, firms identified insecurity (71.8 points) as the most critical challenge affecting operations nationwide. This was closely followed by insufficient power supply (70.9 points), multiple taxation (70.2 points), high interest rates (68.4 points) and financial constraints (65.6 points). Analysts say these constraints underscore the depth of structural weaknesses confronting Nigeria’s private sector.
Despite these challenges, the survey reported a rise in business optimism. The Business Confidence Index increased to 38.5 points in October from 31.5 in September. Firms also projected confidence levels to reach 45.6 points in November, with expectations of further improvement over the next three to six months.
However, sector analysts warn that the optimism remains fragile due to the lack of significant improvements in the operating environment.
The BES further showed a modest rise in capacity utilisation from 60.4% in September to 62.0% in October, suggesting that businesses have yet to deploy their productive capacity amid ongoing disruptions fully.
In contrast to the structural constraints highlighted in the BES, the PMI report indicated strengthening economic momentum. The composite PMI rose to 55.4 points, reflecting expansion across major components such as output, new orders, employment, inventories, and supplier delivery times.
A sectoral breakdown showed that the agriculture sector recorded the most substantial improvement, with its PMI climbing to 57.5 points, marking 15 consecutive months of expansion. The services sector also expanded for the ninth straight month to 55.6 points, while the industry sector rose to 54.2 points, the highest in more than a year.
The CBN attributed the positive trends to improvements in the broader macroeconomic landscape, including declining inflation, which eased from 24.5% in January to 18.0% in September, and the year-to-date appreciation of the naira across both official and parallel markets.
The BES showed that the North-East posted the highest business confidence at 56.1 points, while the South-South recorded the lowest at 23.3 points, a trend linked to declining activity in oil-producing communities.
The Federal Government will on Tuesday, November 25, officially unveil a strategic programme for a free nationwide training of over 100,000 youth on financial literacy.
The Federal Ministry of Youth Development will launch the programme in collaboration with Investonaire Academy. Tagged, the “Financial Literacy, Investment, and Wealth Creation programme.”
The flagship initiative is designed to equip young Nigerians with essential financial skills, investment knowledge, and digital competencies for sustainable wealth creation.
A statement signed by the Director, Press and Public Relations, Federal Ministry of Youth Development, Omolara Esan, and made available to newsmen, confirmed that the launch of the programme, to be held in Abuja, would promote nationwide participation.
It added that the launch would bring together senior government officials, development partners, private sector leaders, and youth representatives to explore innovative approaches for improving financial capability and strengthening the economic prospects of young Nigerians.
Minister of Youth Development, Comrade Ayodele Olawande, would serve as the chief host, while the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, would grace the event as the Special Guest of Honour.
Also expected are representatives of key government institutions and private sector partners, including Dr Enefola Odiba, International Programme Director, Investonaire Academy, and Mr. Bashir Nurmohamed, Chief Executive Officer, Hantec Markets
The statement reads, “A major highlight of the event will be the unveiling of a free national financial literacy training programme targeting over 100,000 youths annually. The programme will be powered by a state-of-the-art Learning Management System (LMS) designed to enhance financial intelligence, investment capacity, and entrepreneurial readiness among Nigerian youth.
Lady Godknows Ogbulu
The chairman of the United Bank for Africa, Tony Elumelu, says Nigeria’s economic transformation will be driven by entrepreneurs, not government handouts or foreign assistance.
Elumelu, who spoke at the Grow Nigeria Conference 2.0 and themed ‘Empowering Nigeria’s Entrepreneurs: Building Institutions That Last’, in Lagos, Monday, said the nation’s future is already being shaped by business owners who refuse to settle for mediocrity.
Elumelu, who is also the founder of the Tony Elumelu Foundation, described Nigeria as an entrepreneurial nation but stressed the need to build institutions that can stand the test of time.
“Starting businesses is good. Sustaining them is critical, and that’s how we transform this economy,” he said.
He noted that many promising ideas fail because the systems and support structures necessary for growth are absent.
According to him, Nigeria’s renewal must come from the private sector, backed by strong governance frameworks and proper succession planning.
“Nigeria will not be built by government handouts or foreign aid. Government’s role is critical, but Nigeria will be built by entrepreneurs — by you, building businesses that create jobs, hope, and prosperity from the ground up,” he said.
Elumelu, however, emphasized that entrepreneurs cannot succeed in isolation.
“You need frameworks — clear governance, succession planning, and relentless focus on value. We need the right environment. We need a Nigeria where policies are predictable, infrastructure works, and financing is truly accessible,” he said.
He called for stronger alignment between public and private sector efforts, warning that progress would remain limited if institutions work independently rather than collaboratively.
Elumelu commended the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, for ongoing reforms within the agency.
He further lauded President Bola Tinubu for appointing young Nigerians to lead key institutions and for prioritizing youth entrepreneurship.
“Let us cut the bureaucracy. Make finance and opportunity real, not theoretical. Let’s help Nigeria’s entrepreneurs move from surviving to winning.
“Every job we create fights insecurity. Every thriving business increases our tax base and accelerates prosperity for all,” Elumelu added.
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