The rising cost of cement and other building materials in Nigeria is threatening affordable housing delivery, according to Oba Akintoye Adeoye, President of the Real Estate Developers Association of Nigeria (REDAN).
Cement Prices Hit Record Highs
Adeoye said the construction sector is under increasing strain as cement prices continue to surge nationwide.
A 50kg bag of cement, which sold for about ₦7,500 in late 2025, now costs between ₦11,500 and ₦15,000 in many parts of Nigeria. Prices initially rose to ₦9,000–₦10,000 at the start of 2026 before climbing further in recent months.
He noted that this sharp increase is significantly impacting housing development and infrastructure projects across the country.
Developers Face Mounting Pressure
According to REDAN, the rising cost of cement, alongside increases in iron rods and sand, is putting developers under serious financial pressure.
Adeoye explained that:
- Project timelines are being delayed
- Housing developments are being scaled down
- Some projects are being abandoned entirely
Cement, a key component in construction, accounts for a large share of building costs. As prices rise, overall housing costs increase, making homeownership more difficult for Nigerians.
Impact on Housing Deficit
Nigeria already faces a significant housing deficit running into millions of units. The continuous rise in building material costs is expected to worsen the situation.
Adeoye warned that higher construction costs could:
- Reduce access to affordable housing
- Increase rent prices
- Encourage the use of substandard materials
He stressed that cutting corners on materials could compromise building safety and quality.
Call for Government Intervention
The REDAN president urged the Federal Ministry of Housing and other stakeholders to act urgently to stabilize prices.
He called for:
- Engagement with cement manufacturers
- Policy interventions to regulate pricing
- Collaboration across the construction value chain
Adeoye emphasized that a stable pricing environment is critical to sustaining housing delivery and attracting investment into the sector.
—
Why Rent Is Also Rising
Adeoye explained that rising building costs are indirectly affecting rent, though supply and demand remain key drivers.
Using a real-life example in Akure, he noted that rental prices have surged unexpectedly, with some properties now costing as much as ₦8 million annually—comparable to rates in parts of Lagos.
—
Land and Titling Challenges Persist
Beyond material costs, Adeoye identified structural challenges affecting housing delivery:
High cost and uncertainty of land acquisition
Slow and inefficient land titling processes
Lengthy approval timelines
He noted that, unlike in developed countries where property documentation is digitized, Nigeria still struggles with bureaucratic delays that can take years.
—
Outlook for Nigeria’s Housing Sector
Adeoye concluded that addressing rising cement prices and reforming land administration systems are essential to solving Nigeria’s housing crisis.
Without urgent action, he warned, affordable housing will remain out of reach for millions, while developers continue to face an increasingly difficult operating environment.
—
SEO Tags:
Cement price Nigeria, REDAN, housing deficit Nigeria, cost of building materials, real estate Nigeria, affordable housing crisis, construction cost Nigeria
