Stakeholders in cement distribution have blamed the surge in cement prices on rising fuel and transportation costs, citing global geopolitical tensions as a major factor.
According to some of the stakeholders, including the Ondo State Commissioner for Commerce, Industry and Cooperative Services, Pastor Bola Ademuwagun, attributed the recent increase in cement prices in Nigeria from about ₦11,000 and ₦11,500, depending on location, to around ₦12,000 per bag to rising energy and logistics costs.
Ademuwagun said that although factory production costs remain relatively stable, high petrol prices have significantly increased the cost of transporting cement. “A bag of cement now sells for about ₦12,000, largely due to transportation costs driven by fuel prices”, he said.
He linked the rise in fuel costs to ongoing global conflicts, particularly in the Middle-East, noting that the effects are impacting multiple sectors of Nigeria’s economy. “It’s not just cement, everything is becoming more expensive”, he added.
The commissioner noted that fuel pricing is beyond the control of state governments, expressing hope that the administration of President Bola Tinubu will stabilise the situation. He also highlighted infrastructure gaps as a key factor in price disparities, pointing out that states with rail access, such as Oyo, enjoy lower costs compared to those relying on road transport.
Ademuwagun called for accelerated investment in rail and seaport infrastructure to ease logistics and improve affordability. He projected economic improvement within the next two years if global tensions ease and investments are sustained, while urging global leaders to prioritise peace. “Nothing is better than peace”, he said.
Alsi, a cement distributor in Akure-Central senatorial district of the state, Femi Ajibade, attributed the development largely to disruptions in global supply chains triggered by ongoing conflicts in the Middle-East. According to him, tensions involving Iran, Israel and the United States have affected key international trade routes, thereby slowing the movement of goods and increasing logistics costs worldwide. He noted that although cement is produced locally, its distribution is heavily dependent on transportation networks, which have become more expensive to operate.
Ajibade further identified the sharp rise in the cost of diesel as a major driver of the price increase. He disclosed that diesel prices have surged from about ₦1,100 per litre to between ₦1,800 and ₦1,900 per litre in recent months.
The stakeholders expressed optimism that if the government works towards reducing the price of diesel and fuel, the price of cement will also come down. “Diesel plays a key role in transporting cement from one place to another. As long as diesel prices continue to rise, cement prices will likely remain high”, they added.
