HBM Nigeria PLC, a member of the HUAXIN Group, formerly known as Lafarge, has assured consumers of its commitment to prioritising their needs through fair cement pricing. However, the company urged customers to bear with it, noting that cement producers are not deliberately increasing prices to burden consumers.

This was disclosed yesterday during a media parley organised by HBM Nigeria PLC to formally introduce its rebranding to media partners and also strengthen partnerships for accurate reportage of the company’s activities.

Speaking at the event, the Group Managing Director/Chief Executive Officer of the company, Lolu Alade-Akinyemi, clarified that cement accounts for only a small fraction of total building costs, attributing the rise in construction expenses largely to broader economic pressures, including energy, logistics, and the foreign exchange crisis.

He revealed that cement accounts for approximately 14 per cent of the cost of building a house, countering the common perception that it accounts for up to 80 per cent.

Alade-Akinyemi said: “If you are building a house for 100 million, cement accounts for 14 per cent of the total cost because everybody thinks cement is 80 per cent of the cost.

There are other things like iron rods, finishing, and logistics that make up a much larger share.”

He explained that the cement production value chain is heavily dependent on imported inputs and energy, which significantly inflate costs. According to him, most equipment used in quarrying operations, including excavators, dumpers, and graders, is imported.

He further noted that energy costs account for 50-60 per cent of production expenses, explaining that the manufacturing process involves heating limestone in kilns at temperatures of up to 1,500 degrees Celsius, a process powered largely by gas purchased in dollars.

“The gas that we use is bought in dollars; although we pay in Naira, it’s indexed in dollars. Three years ago, the exchange rate was around N350-N400 per dollar. Today, it is about N1,400. That alone has significantly increased production costs,” he said.