What are the reasons for the current high price of cement in Nigeria?
It is correct that the prices for cement have increased considerably over the past years. If you take CCNN, about 50% of our total costs are related to energy – electric power and fuel. We have our own power station and use diesel to generate electricity. When the oil prices go up, our costs go up, and in order to stay in business we have to increase prices. All the cement companies in Nigeria are in this position. The cost of energy is the biggest driver of cement prices in the country. What are the main challenges you face in doing business in Nigeria? The main challenges we face are in the supply of energy. We get most of our products from the Kaduna oil refinery that has just started again after being closed for two years due to problems in the South. Before this we had to truck fuel all the way from Port Harcourt which is 1 500 kilometres away. It was a challenge. But regardless of this, the Nigerian economy has been booming and has seen very good growth for several years. Cement
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