Stakeholders in Nigeria’s construction and real estate sector have expressed serious concern over the sharp rise in cement prices, which is threatening the delivery of affordable housing across the country.
A 50kg bag of cement now sells for approximately N12,000 in major markets in the Federal Capital Territory and other parts of Nigeria. Builders and developers warn that the escalating cost of cement, combined with high fuel prices, is making many housing projects financially unviable, with some sites already abandoned.
Sharp Increase in Three Years
Civil engineer Chukwuebuka Vincent noted that cement prices have more than doubled since 2023, when a bag sold for between N5,500 and N6,000. He revealed that one of the projects under his supervision has been put on hold due to the unsustainable cost of building materials.
Real estate expert Jide Fasuyi expressed puzzlement over the situation, questioning why cement remains so expensive despite being produced locally by major manufacturers including Dangote Cement, BUA, Ibeto Cement, and Lafarge. “It is troubling that a product manufactured within the country and even exported is still costing Nigerians so much,” he said.
Fuel Costs and Logistics Add Pressure
The situation is being worsened by rising petrol prices, which have significantly increased the cost of transporting cement, steel rods, tiles, and other building materials. Barrister Festus Adebayo, Executive Director of the Housing Development Advocacy Network, highlighted that logistics expenses are being passed on to end users, further driving up the overall cost of construction.
Government Policy and Industry Perspective
The Federal Government recently banned the importation of cement along with several other items to boost local production. However, industry players say the policy has so far failed to bring down prices in the domestic market.
Aliko Dangote, President of Dangote Group, had previously attributed the high cost of cement in Nigeria compared to export markets to the heavy burden of multiple taxes and levies. These include company income tax, education tax, health levies, VAT, and withholding tax. The Dangote Group remains one of Nigeria’s largest taxpayers.
Implications for Housing Delivery
Industry observers warn that if cement prices continue to climb, the dream of affordable housing for millions of Nigerians will become even more difficult to achieve. Developers are calling for urgent measures to address the factors driving up production and distribution costs, including taxes, levies, and fuel prices. The current crisis highlights the urgent need for better coordination between government policy and the private sector to ensure that local manufacturing translates into affordable building materials for citizens.
