0
0
The claim that Nigerian cement is the most expensive in the world is erroneous.
There is no credible global data that proves cement produced or sold in Nigeria is the most expensive anywhere in the world. None.
What exists are opinions, social media comparisons, and emotional conclusions, not rigorous evidence.
Now to the second myth.
Please note that I do not speak from the position of a cement manufacturing professional, but from an analysis of available data, and also as a business man involved in production.
Now there is a popular narrative that Dangote Cement is expensive simply because it wants to be, or that cement prices in Nigeria are high because of greed or monopoly.
That argument may sound satisfying emotionally, but it collapses completely once we examine history, inflation, currency realities, and the cement production process itself.
So let’s deal with facts, not feelings.
Cement Prices in Context: A 25-Year Perspective
In the early 2000s, a 50kg bag of cement sold for under ₦1,000.
By 2007–2008, prices moved to about ₦1,500–₦2,000.
By 2015, cement averaged ₦1,800–₦2,500.
In 2020, it was around ₦2,300–₦2,500.
By 2023–2024, prices jumped to ₦6,500–₦8,800.
In 2025, cement now sells between ₦9,500–₦11,500 across many parts of Nigeria.
At face value, that looks alarming, until you place it side by side with inflation and currency collapse.
Over the same period:
Inflation moved from mostly single digits to 30%+
The naira weakened from roughly ₦120/$ in year 2000 to ₦1,500+/$ by 2025.
Energy
Transport
Logistics costs
All exploded within these period.
So while cement prices rose about 10x over 25 years, the currency lost far more than 10x in value.
In real terms, cement did not suddenly become outrageously expensive the naira collapsed beneath it.
Now you may ask: if cement is produced locally, why is it so expensive? Here are the reasons.
Cement Is a Heavy Industry, Not a Light Consumer Good
Cement is not bread.
It is not rice.
It is not sachet water.
Cement production requires:
Limestone mining
Heavy industrial machinery
Kilns operating at 1,450°C
Continuous power, 24/7
Imported spare parts
Massive logistics infrastructure
In countries with stable power, rail transport, and strong currencies, cement production is cheaper.
In Nigeria:
Power is self-generated using diesel and gas
Diesel prices have more than doubled
Gas prices are dollar-linked
Most spare parts are imported
Distribution relies heavily on road transport
Trucks run on diesel in a high-inflation economy
Every one of these inputs is inflation- and FX-sensitive.
Why Inflation Hits Cement Harder Than Most Products
Inflation does not affect all goods equally.
Cement is hit harder because its cost structure is.
What about Taxation?
The Silent Cost Nobody Talks About.
The cement industry is one of the most heavily taxed sectors in Nigeria.
Not by one tax, but by multiple layers of taxes, levies, and charges, imposed at federal, state, and local government levels.
Cement manufacturers face:
Company Income Tax
Education Tax
Tertiary Education Trust Fund (TETFund) levy
Value Added Tax (VAT)
Customs duties on imported machinery and spare parts
Withholding taxes
Environmental levies
Mining fees and royalties
State and local government levies
Road taxes, haulage permits, and union fees.
So when headline inflation is 30%, cement production costs do not rise by 30%, they can rise by 40–70%.
Finally, Cement pricing does not follow average CPI – Consumer Price Index. No, It follows energy, FX, and logistics inflation.
Dangote Cement records:
About 59% EBITDA margin in Nigeria
About 19% EBITDA margin across the rest of Africa
This is not because Dangote loves other countries more.
It is because:
Power is cheaper elsewhere
Rail infrastructure works
Port systems are more efficient
Currency volatility is lower
Operating environments are more predictable.
Dangote is not charging Nigerians more because Nigerians can accommodate higher prices.
Dangote is charging more because Nigeria is more expensive to operate in.
Meanwhile, importing cement is not necessarily a cheaper option; it often comes with compromises in quality.
Cheaper + Poor Quality = Expensive
Daniel ADENIYI | #LeadershipArchitect
#thedanieladeniyi
#BuildLikeDangote.
SB E-news.
About the Author
