Despite a steady decline in Nigeria’s inflation rate, prices of key building materials such as cement and iron rods have remained stubbornly high, raising concerns for builders and developers across the country.
Data from the National Bureau of Statistics (NBS) shows that headline inflation eased for the fifth consecutive month, dropping to 20.12 percent in August from 21.88 percent in July 2025. However, this decline has yet to translate into relief in the construction sector, where prices have largely stayed elevated.
BusinessDay market checks reveal that as of last week, a 50kg bag of Dangote cement sold for N10,200 in Lagos, while Lafarge and Elephant brands went for N10,000. In Enugu, prices were even higher, ranging between N10,200 and N10,500 depending on the brand and location, according to dealer Samuel Chinwendu.
Similarly, iron rods have seen little price movement in recent months. “One length of 12mm rod sells for N9,500 for the local brand and N12,500 for the imported ones,” said Sebastin Ovie, a building materials seller in Ojo, Lagos.
Other materials such as sand and granite have also held steady, selling at N50,000 and N60,000 per ton respectively over the past six months.
Industry watchers attribute the stubbornly high prices to factors including currency depreciation, increased demand from government-backed infrastructure projects, and market dynamics that do not always mirror the inflation trend.
The sustained high cost of materials is expected to continue exerting pressure on construction costs, potentially slowing down housing delivery and infrastructure development in the short term.
By: Chuka Uroko
Source: Business Day
