Experts in the cement manufacturing sector have determined that a fair price for cement in Nigeria should be between N7,000 and N8,000, taking into account the refining process.
In an interview with the Nigerian Tribune, expert Kelvin Tar described the cement refining process, which includes extraction and crushing. He explained that raw materials such as limestone, clay, shale, and sand are blasted and excavated from quarries.
These materials are then fed into heavy-duty industrial crushers, where they are reduced to gravel-sized pieces for efficient transport and handling.
“The crushed materials are then analyzed and proportioned based on precise chemical requirements to ensure consistent product quality. When mixed, it is pulverized into a fine, homogeneous powder known as “raw meal” using vertical roller mills or ball mills, often utilizing waste heat from downstream processes to dry out moisture”.
He stated that at Pyroprocessing (Kiln Stage), “the raw meal travels through a multi-stage preheater tower where hot exhaust gases heat the material, initiating partial calcination. Then the heated meal enters a massive, rotating kiln reaching temperatures up to 1450°C. Extreme heat causes chemical reactions that fuse the materials into nodular, pebble-sized grey intermediates called clinker.
“After which rapid air cooling stabilizes the clinker’s complex mineral structure and recovers thermal energy for the system. Finish Grinding and Packaging.
The cooled clinker is blended with roughly 3% to 5% gypsum to regulate the setting time of the final cement. The mixture is ground in high-efficiency mills into an ultra-fine powder, the finished product we call cement,” Tar noted.
Putting the process to figures, another Expert, Clement Joseph, explained that “extraction and Crushing of Raw Materials per bag will cost like N500.. What it covers is Surface mining, blasting, heavy-duty diesel or electric excavators, and primary/secondary crushing of raw limestone, clay, and shale.
“Proportioning, Blending, and Raw Grinding will cost N950. What it covers is Computerized proportioning, vertical roller/ball milling to create the fine “raw meal,” and homogenization silos”.
He stated that Pyroprocessing will cost N3,500. “What it covers is operating multi-stage preheater towers and firing the rotary kilns up to 1450°C to turn raw meal into clinker, followed by rapid cooling. Note: this is the heaviest cost incurred during production.
“Finish Grinding N1,200. What it covers is Procuring and mixing the necessary 3–5% gypsum, operating high-efficiency finish-grinding mills to transform clinker into fine Portland cement powder, and testing quality compliance.
“Packaging, Storage, and Logistics will cost N1500. What it covers is woven 50kg bags, automated bagging, bulk silo storage, factory overheads, corporate taxes, and long-distance transport logistics to distribution hubs.
“From an economic point of view,
Fair Factory-Gate Price should be between 7,000 to 8,000, which will allows manufacturers a healthy 20–25% profit,” the Expert explained.
Few days ago, the Federal Competition and Consumer Protection Commission (FCCPC) said the Commission had established possible manipulation of cement prices in Nigeria.
Analysts believe the price of cement in the country is high considering the manufacturing process.
At the moment, it was gathered that a bag of cement is sold between N12,000 to N15,000 depending on the location.