Cement prices hit N12,000 per bag as BUA blames forex, energy costs
By Aboki Forex —
The cost of cement in Nigeria has crossed N12,000 per 50kg bag in several states, sparking fresh concerns over housing affordability. BUA Cement has blamed foreign exchange volatility and rising energy costs for the surge.
Speaking at the company’s 10th Annual General Meeting in Abuja, chairman Abdul Samad Rabiu said the naira depreciation has pushed up the cost of imported spare parts, energy inputs and other materials. He noted that energy alone accounts for nearly 60 percent of production costs.
BUA Cement managing director Yusuf Binji revealed that one of the company’s plants in Edo State saw its monthly natural gas bill jump from N4 billion to N16 billion after the naira devaluation. Diesel prices also climbed from N930 per litre in March to nearly N1,850 per litre within two months, driven by tensions in the Middle East.
Binji said transportation is now a major cost driver. “Half of that price of a bag of cement is actually because of transportation,” he stated.
Despite the challenges, BUA Cement reported strong financial results. Revenue rose to N1.2 trillion in 2025, up from N876.5 billion in 2024. Profit before tax surged 367 percent to N465.3 billion, while profit after tax jumped to N356 billion from N73.9 billion. Shareholders approved a final dividend of N10 per share.
The company is pushing ahead with expansion. A new production line in Ososo, Edo State, is nearing completion, and another line has been announced for Sokoto State. These projects are expected to add six million tonnes to annual output, raising total installed capacity to 23 million tonnes by the end of next year.
Rabiu acknowledged that recent forex reforms have brought some stability, allowing manufacturers to project costs up to nine months ahead. He said the reforms initially caused pain but removed distortions that made forex access difficult.
Industry operators say the latest price jump from N11,000 to N12,000 per bag deepens concerns about affordability and slowing construction activity. Experts point to rising energy costs as the primary trigger.