Rising cement prices across Nigeria are raising fresh concerns within the construction and real estate sectors as the cost of the essential building material approaches N12,000 per bag in several markets.
Industry findings show that the price of cement has increased significantly since the second half of 2025, rising by more than 30 percent and putting additional pressure on property developers, builders and prospective homeowners.
A market survey in several building material markets in Abuja indicates that a 50-kilogram bag of cement, which sold for around N7,500 in the last quarter of 2025, now sells between N11,200 and N11,800 depending on the location.
Markets in areas such as Jabi, Karu, Area 1 and Utako recorded prices of no less than N11,500 per bag during recent checks.
Stakeholders say the continued increase in cement prices could lead to project delays, rising rent, and higher property prices across the country.
The development has also raised concerns about Nigeria’s efforts to improve access to affordable housing, especially as the country currently faces an estimated housing deficit of about 28 million units.
Manufacturers record massive revenue growth
Despite the rising costs, Nigeria’s three major cement manufacturers recorded significant revenue growth in 2025.
The companies — , and — generated a combined revenue of about N6.55 trillion during the 2025 financial year.
This represents a 27 percent increase compared to the N5.15 trillion revenue recorded by the three firms in 2024.
According to their audited financial reports for the year ending December 2025, Dangote Cement posted the highest revenue at N4.31 trillion, representing a 20.28 percent increase from N3.58 trillion recorded in 2024.
BUA Cement followed with N1.18 trillion in revenue, marking a 35 percent rise from N876.5 billion in the previous year.
Lafarge Africa also recorded strong growth, reporting N1.07 trillion in revenue in 2025, a 53.04 percent increase from N696.77 billion in 2024.
Analysts say the growth reflects both expansion in production capacity and increases in cement prices across the Nigerian market.
Developers warn of impact on housing sector
Industry experts say the surge in cement prices is troubling, especially for a country already grappling with a large housing deficit.
President of the (REDAN), , described the situation as alarming and called for urgent intervention from the government.
According to him, the sharp increase in cement prices has placed significant pressure on developers and investors in the housing sector.
He explained that cement is one of the most critical inputs in construction and accounts for a large portion of building costs. When its price rises, the overall cost of housing development also increases.
Adeoye added that developers are already experiencing financial pressure, leading to project delays, scaling down of housing developments and, in some cases, the suspension or abandonment of projects.
He warned that the trend could worsen Nigeria’s housing deficit and make homeownership even more difficult for millions of Nigerians.
Experts also noted that other building materials, including iron rods and sand, have experienced price increases, further raising construction costs.
They urged the government to engage stakeholders in the building materials value chain to stabilise prices and support affordable housing development.
