Obasanjo To Tinubu: How Price Of Cement Rose From ₦500 To Over ₦10,000

The price of cement, one of the most important materials in Nigeria’s building and construction industry, has risen significantly since the country returned to democratic rule in 1999.

At the beginning of the Fourth Republic, a standard bag of cement could be purchased for around ₦460 to ₦500 in some Nigerian markets. More than 27 years later, the same 50kg bag has sold for between ₦10,000 and ₦15,000 in different parts of the country.

The increase has not been uniform. There have been periods when cement prices declined following increased local production, government intervention or competition among manufacturers. At other times, scarcity, inflation, exchange-rate depreciation, energy costs and transportation expenses pushed prices sharply higher.

Historical comparison also requires caution because Nigeria does not have one continuous publicly available nationwide annual retail-price series for cement stretching back to 1999.

Consequently, figures for many of the earlier years are drawn from contemporary market surveys, academic studies and industry reports and should be treated as indicative retail prices rather than official national averages.

For consistency, this article uses the price of a standard 50kg bag of cement as the benchmark.

1999: Around ₦460–₦500 Per Bag

When former President Olusegun Obasanjo took office in May 1999, a bag of cement cost around ₦500.

A Guardian report reviewing developments in the building industry similarly put the price at ₦500 when Obasanjo assumed office.

An academic study of building-material prices in Ede, Osun State, recorded an annual average of ₦460 per bag in 1999, illustrating the geographical differences that existed even then.

A reasonable benchmark for 1999 is therefore approximately ₦460 to ₦500 per 50kg bag.

2000: Around ₦500

A study examining construction costs in Nigeria recorded cement prices moving between approximately ₦420 and ₦500 during the four quarters of 2000.

Another historical dataset put the annual price in Ede at about ₦500 per bag.

2001: Around ₦500–₦650

Quarterly data in one construction-cost study showed cement moving from about ₦500 to ₦600 during the year, while the Ede survey recorded an annual figure of approximately ₦650.

The period therefore suggests a market price of roughly ₦500 to ₦650 per bag, depending on location.

2002: Around ₦600–₦680

Quarterly construction data put prices at approximately ₦650 to ₦680, while the Ede survey recorded ₦600.

This was also the period when the Federal Government began pushing its backward integration policy, aimed at encouraging companies importing cement to invest in domestic production.

2003: Around ₦600–₦760

Historical construction-material data put the price at between approximately ₦600 and ₦760 per 50kg bag during different parts of the year.

The upward trend reflected Nigeria’s continuing dependence on imported cement and limited domestic production capacity.

2004: Price Reaches About ₦1,000

An International Cement Review report in August 2004 said a bag was selling for about ₦1,000 or more, depending on the brand and location.

Another Lagos market survey in November found that a 50kg bag that had sold for ₦950 in August was then selling for approximately ₦1,000.

Industry reports at the time attributed the increase to electricity shortages, expensive fuel and gas, transportation problems and inadequate domestic supply.

2005: Around ₦1,200–₦1,500 In Some Markets

Historical building-material data show cement at roughly ₦1,200 to ₦1,500 during different periods and locations.

The widening difference between locations underlines why a single national figure for the early years can be misleading.

2006: Around ₦1,200–₦1,550

One historical dataset recorded prices ranging between ₦1,200 and ₦1,500, while an Ede market study put the yearly figure around ₦1,550.

Nigeria was still struggling with a substantial gap between domestic cement production and demand.

2007: ₦1,100–₦1,800

In May, cement producers announced that their factory price was increasing from ₦1,130 to approximately ₦1,185, while distributors increased prices from ₦1,280 to about ₦1,380 per bag.

During a period of scarcity, however, retail prices climbed to between ₦1,700 and ₦1,800 in some parts of the country.

By October, increased supply in parts of the South-South pushed the retail price down from about ₦1,550 to ₦1,400.

2008: ₦1,300, But Scarcity Pushes Price To ₦2,000

A 50kg bag that had sold for approximately ₦1,300 two weeks earlier climbed to as much as ₦2,000 at several Lagos depots.

The increase was blamed largely on scarcity.

The episode again showed how short-term shortages could drive prices far above normal market levels.

2009: Around ₦1,600–₦1,700

Local historical surveys suggest that a 50kg bag sold for approximately ₦1,600 to ₦1,700 in parts of Nigeria during the period.

The figure should be viewed as an indicative market benchmark rather than a nationwide average.

2010: Around ₦1,500–₦1,700

By August 2010, a bag of cement was reportedly selling for approximately ₦1,500.

A month later, Vanguard reported that the open-market price had climbed to about ₦1,700 per bag, representing an increase of more than 13 per cent.

2011: Cement Hits ₦2,500–₦3,000 During Scarcity

Cement recorded one of its biggest price shocks of the period in 2011.

Before the shortage, Abuja-area dealers reported prices around ₦1,500 to ₦1,550, which later rose to ₦1,600–₦1,800.

By May, a nationwide News Agency of Nigeria survey put the average market price at about ₦2,500, compared with ₦1,500 in December 2010.

Prices subsequently declined to roughly ₦1,600–₦1,900 after government intervention, before climbing again.

By August and September, cement was selling for ₦2,800 and as much as ₦3,000 in parts of Lagos and Ogun.

2012: Around ₦1,500–₦1,750

Market data from Enugu, for example, put a 50kg bag at between ₦1,500 and ₦1,750, with an average of approximately ₦1,625.

Another historical study recorded around ₦1,550 in Ede during the same year.

2013: Around ₦1,600–₦1,700

Nigeria’s cement-production capacity expanded considerably in the years leading up to 2013.

By that year, industry capacity had reached about 28 million tonnes, and BusinessDay reported that cement prices remained below ₦1,700 per bag.

The Ede survey similarly put the price at approximately ₦1,650.

2014: ₦1,400–₦2,200

A bag that sold for about ₦1,650 in December 2013 climbed to around ₦2,200 by April 2014 amid scarcity.

BusinessDay also reported prices of ₦1,900–₦2,200 during March, up from ₦1,600–₦1,700.

However, prices later declined.

By December, the market average was reported at roughly ₦1,400 per bag, following increased production capacity and a major price reduction announced by Dangote Cement.

2015: Around ₦1,400–₦1,800

Cement remained relatively affordable in 2015 compared with later years.

Market and academic records suggest prices of approximately ₦1,400 to ₦1,800, depending on location. One Enugu study recorded an average of ₦1,815 for the year.

2016: ₦1,600 To Above ₦2,200

BusinessDay reported that a 50kg bag sold for about ₦1,600 around August and October, before climbing to ₦2,200–₦2,300 by December.

Foreign-exchange pressure, inflation and higher production costs contributed to the increase.

2017: Around ₦2,500–₦3,000

By March, a bag was selling for approximately ₦2,600–₦2,700.

A Guardian market review later found prices ranging between ₦2,550 and ₦3,000 across cities including Calabar, Aba, Port Harcourt, Jalingo and Abuja.

2018: Around ₦2,400–₦2,700

Industry price histories generally place a 50kg bag at approximately ₦2,400 to ₦2,700, depending on brand and location.

2019: Around ₦2,400–₦2,600

A Sunday PUNCH review of building-material prices found that cement sold for approximately ₦2,400–₦2,500 per 50kg bag.

Other market studies put it around ₦2,600 in some areas.

2020: ₦2,400–₦3,500

Nigeria entered 2020 with cement generally selling for approximately ₦2,400 to ₦2,600.

However, the market became more volatile towards the end of the year following COVID-19 disruptions, higher demand and supply-chain problems.

In some markets, cement climbed from approximately ₦2,500–₦2,700 to ₦3,000–₦3,500 towards the end of the year.

2021: Price Rises To ₦4,000–₦4,600

The post-COVID construction boom contributed to a major cement-price increase in 2021.

Prices rose from around ₦2,400–₦2,600 in 2020 to about ₦3,500 by April 2021 and approximately ₦4,000 later in the year.

By December, a Guardian survey across several states found prices ranging from approximately ₦3,800 to ₦4,600 per bag.

Interestingly, Dangote Cement said in April 2021 that its factory prices were only ₦2,450 at Obajana and Gboko and ₦2,510 at Ibese, highlighting the gap between factory and retail prices.

2022: Around ₦4,300–₦4,700

BusinessDay reported that by the end of the year, a 50kg bag was selling for approximately ₦4,300 to ₦4,700 across several states.

The increase was attributed partly to higher energy, transportation and general production costs.

2023: Around ₦5,000–₦5,600

BusinessDay reported that a bag climbed to about ₦5,600, compared with earlier prices of approximately ₦3,000–₦3,500.

In October, BUA Cement announced a reduction in its ex-factory price to ₦3,500, but the lower price did not become widespread at retail outlets.

By December, BUA Cement was still selling for about ₦5,500 in major markets.

2024: Cement Briefly Hits ₦10,000–₦15,000

Prices that had been around ₦5,000–₦5,500 in December 2023 climbed sharply within weeks.

In February, The Guardian found 50kg bags selling for ₦7,000 to ₦9,500 in major building-material markets.

Sunday PUNCH found prices as high as ₦10,000 to ₦13,000 in parts of Abuja and Enugu.

Some locations reportedly recorded prices approaching ₦15,000 during the height of the crisis. However, the market later moderated substantially.

By September 2024, BusinessDay reported that the average market price had stabilised at approximately ₦7,500 per 50kg bag.

2025: Around ₦7,500–₦10,500

BusinessDay reported that prices ranged between ₦9,000 and ₦9,500 throughout the first quarter, before climbing to approximately ₦10,000–₦10,400 in April.

The Guardian similarly reported retail prices of around ₦10,000–₦10,500 in April, depending on location and brand.

Prices later moderated in some markets, with industry observations putting a bag around ₦7,500 in the final quarter of 2025.

This again demonstrates why cement does not have one fixed national price.

January 2026: ₦9,300–₦9,700

The Federal Competition and Consumer Protection Commission provides one of the clearest official market snapshots for 2026.

According to the FCCPC, its market intelligence showed a 50kg bag selling for approximately ₦9,300 to ₦9,700 in January 2026.

First Half Of 2026: Price Climbs Above ₦10,000

The FCCPC said cement was selling for between approximately ₦10,500 and ₦13,000 by mid-2026.

A Guardian review in June similarly found a bag selling for as much as ₦13,000, depending on location and market conditions.

July 2026: Up To ₦15,000

The FCCPC said its market intelligence showed prices between ₦13,000 and ₦15,000 in parts of Nigeria.

The Commission expressed concern that retail prices had risen despite Nigeria having installed production capacity of approximately 60–65 million metric tonnes annually, compared with estimated domestic consumption of about 25–30 million tonnes.

August–September 2026: Prices Vary Widely

A market survey published on August 17 found 50kg cement prices ranging from approximately ₦8,500 to much higher levels, depending on the brand, location and cement type.

For ordinary standard cement, recent construction-market surveys have generally placed prices at roughly ₦9,500–₦13,000, although buyers in some locations have continued to report prices approaching ₦15,000.