Nigeria's Construction Sector Urges to Shift into More Sustainable Asphalt Amid Cement Crisis

Nigeria is experiencing periods of severe inflation, which has led to an ongoing spike in the price of cement. Thus, in response to the current situation with cement, the chairman of a construction company is now suggesting a transition away from cement and toward asphalt, which is more environmentally friendly.

(Photo : Pexels/Tima Miroshnichenko)

Severe Inflation Rate in Nigeria

The recent increase in cement prices has further exacerbated social instability when the nation grapples with a severe inflationary period during which daily necessities become progressively unaffordable for the average citizen. The Chairman of Allwell Engineering Construction Company, Aminu Musa, who has been a prominent figure in Nigeria's construction industry for a long time, contends that the government's existing policy, which prioritizes cement for road construction, is improper in light of the current conditions. 

As mentioned, he suggests that the general public will be less adversely affected by the return to asphalt, historically employed in road construction. In addition to providing superior resistance to the intense rainfall that is typical in many regions of Nigeria, asphalt roads are not only economical over time owing to their longevity and low maintenance requirements. The implementation of asphalt could boost local enterprises that are focused on its manufacturing and use, which could result in the creation of jobs and the promotion of economic growth.

On the other hand, although BUA Cement had previously stated that it would keep costs at N3,500 ($2.36) per bag, the actual situation is a bit different. Dangote Cement and BUA Cement sell their retail products for N9,500 ($5.91) and N9,000 ($5.60), respectively. As indicated by Dangote Cement's 33% increase in operational expenses in the third quarter of 2023, this surge is consistent with Cardinal Stone's prediction that cement prices will remain elevated through 2024 due to producer-incurred operational cost increases.

Moreover, the preference of the Federal Government for concrete in road construction further exacerbates worries regarding increases in the price of cement, which is in line with the warnings issued by the Cement Producers Association of Nigeria on the matter.

Also Read: Hardscape vs. Landscape Differences: Blending Elements For a Harmonious Outdoor Space

Heated Argument on Cement Crisis

In many regions of Nigeria, the price of a bag of cement, which is used for building across the country, has jumped to almost N13,000 ($8.09) in the middle of a crisis in the cost of living that has led to increases in the costs of products and services throughout the entire nation. On Monday, Feb. 19, a meeting between the Minister of Works, David Umahi, and the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, as well as officials from BUA Cement, Dangote Cement, Lafarge, and the Cement Producers Association, resulted in agreement that the cost of a sack of cement would not surpass N7,000 ($4.36) to N8,000. ($4.98)

In addition, Minister of Housing and Urban Development Ahmed Dangiwa threatened the producers the following day that if the cost of cement did not decrease nationwide, the government would permit massive imports of cement. As per Dangiwa, cement producers are reaping the benefits of the measures implemented by the government. He pointed out that the justifications that cement makers provided for the price rise, including the high cost of gas and production equipment, were insufficient to justify such excessive pricing.

Accordingly, cement manufacturers can set the pricing at which they sell their products; however, wholesalers and retailers frequently set their prices, which may be influenced by the fact that they also have to cover their operational expenses. Nevertheless, Dangiwa noted that the government requests that the wholesalers and merchants feel obligated to sell at fixed pricing by the manufacturers.

Related Article: 7 Major Concrete Mix Ratios That Affect the Durability of Your Construction Work!