Nigeria’s housing sector is facing growing pressure as rising cement prices continue to drive up construction costs, prompting developers and housing experts to call for urgent government intervention.
Cement prices jump above ₦15,000
Speaking during a joint press conference in Lagos, REDAN President said the price of a 50kg bag of cement has increased sharply within a few months.
According to him, cement sold for about ₦7,500 in late 2025, rose to between ₦9,000 and ₦10,000 at the beginning of 2026, and has now climbed to ₦11,500–₦15,000 in several parts of Nigeria.
Adeoye noted that cement is a major component of construction costs, warning that the sudden spike is already affecting housing development projects nationwide.
“When the price of cement rises significantly, the entire cost structure of housing development is affected,” he said.
Developers slowing projects
The rising cost of cement, iron rods, sand, and other construction materials has placed many developers under severe financial pressure.
According to REDAN, some developers are now scaling down projects, delaying construction timelines, or abandoning housing developments altogether.
Adeoye warned that the situation could worsen Nigeria’s already massive housing shortage and make homeownership even more difficult for millions of citizens.
He also raised concerns that high construction costs could push some builders to use substandard materials, potentially compromising building safety.
Construction sector under pressure
Also speaking, , founder of the housing centre at the University of Lagos, noted that the construction sector remains a major driver of economic growth and employment in Nigeria.
He revealed that cement prices have risen by more than 30 percent in recent months, while steel prices have increased by about 20 percent, and sharp sand costs have climbed by nearly 25 percent.
According to Nubi, the increases are driven by a combination of global market pressures, logistics challenges, and rising local demand.
Rising rents across major cities
The rising cost of construction is already affecting housing prices and rental markets across the country.
Nubi said annual rent for a self-contained apartment in Lagos and Abuja has increased significantly, rising from about ₦400,000 previously to between ₦800,000 and ₦1.5 million in many locations.
Similar trends are emerging in other cities such as Kano and Port Harcourt.
Experts warn that if the trend continues, housing affordability could deteriorate further in urban areas.
Calls for government action
REDAN urged the Federal Government and the Federal Ministry of Housing and Urban Development to engage cement manufacturers and stakeholders in the construction materials value chain to stabilise prices.
The organisations also recommended policies that would:
- Support local production of building materials
- Improve logistics and supply chains
- Promote transparency in the construction materials market
In addition, researchers called for increased investment in alternative building materials and innovative construction technologies that could reduce reliance on conventional materials like cement.
