HBM Nigeria Plc, formerly Lafarge Africa Plc, has reported a strong financial performance for the first half of 2026, recording a 31% increase in revenue and a 57% rise in profit after tax (PAT). The company attributed the growth to higher cement sales volumes, improved operational efficiency, and stronger distribution performance amid sustained demand for building materials.

According to the company’s unaudited financial results for the six months ended June 30, 2026, net sales rose to ₦678.4 billion, up from ₦517.0 billion in the corresponding period of 2025. Profit after tax climbed to ₦208.3 billion, while operating profit increased by 51% to approximately ₦291 billion, reflecting improved cost management and operational excellence.

HBM Nigeria said revenue growth was supported by an 11% increase in sales volume, enhanced plant stability, improved logistics, and continued demand from infrastructure and construction projects across the country. The company also recorded stronger operating margins, which rose from 37% in H1 2025 to 43% in H1 2026, highlighting gains in production efficiency and disciplined cost control.

The company noted that its cement business remained the primary revenue driver, accounting for the vast majority of total sales during the period. It added that strategic investments in operational improvements and distribution efficiency continue to strengthen its competitive position within Nigeria’s building materials industry.

Looking ahead, HBM Nigeria said it remains focused on expanding production capacity, maintaining operational excellence, and creating long-term value for shareholders. The company is also progressing plans for a new three-million-tonne integrated cement production line in Calabar, a project expected to strengthen domestic cement supply and support Nigeria’s growing infrastructure and housing sectors.

Industry analysts say HBM Nigeria’s strong half-year performance reflects continued resilience in the construction materials market despite broader economic challenges. They note that sustained investment in cement production and operational efficiency will remain critical to meeting rising demand from housing, commercial real estate, and infrastructure development across Nigeria.

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Housing sector stakeholders have called on the Federal Government to declare a state of emergency on rising building costs, warning that escalating construction expenses are making homeownership increasingly unaffordable and slowing housing delivery across Nigeria. They argue that tackling the cost of building, rather than regulating rents, is the most sustainable way to address the country’s housing crisis.

Former President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Wamakko, said the sharp increase in the prices of cement, steel, roofing materials, electrical fittings, labour, transportation, and financing has significantly raised the cost of housing development. According to him, developers are finding it increasingly difficult to deliver affordable homes under current market conditions.

Wamakko explained that high rental prices are largely a consequence of expensive housing production rather than the root cause of the housing affordability challenge. He maintained that efforts to control rents without reducing construction costs could discourage investment in the real estate sector and worsen the housing shortage.

He urged the Federal Government to introduce targeted policies aimed at lowering construction costs, including support for local production of building materials, improved access to affordable housing finance, better transport infrastructure, stable energy supply, and incentives for large-scale housing development. He noted that reducing the cost of production would encourage developers to build more homes and improve housing affordability.

Industry stakeholders also emphasised the need for reforms in land administration, mortgage financing, and infrastructure development to stimulate private sector investment in housing. They argued that increasing housing supply through lower development costs would have a greater long-term impact on affordability than direct intervention in rental prices.

Experts believe that coordinated government action to reduce construction costs, strengthen housing finance, and encourage local manufacturing of building materials will be critical to closing Nigeria’s housing deficit, improving access to affordable homes, and supporting sustainable growth in the real estate sector.

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The Tertiary Education Trust Fund (TETFund) has called for research-driven solutions to address Nigeria’s growing housing deficit, urging architects, researchers, and academic institutions to develop innovative building technologies and locally sourced construction materials that can make housing more affordable and sustainable. The Fund said research and innovation are critical to transforming the country’s housing sector and reducing dependence on imported building materials.

Speaking during a courtesy visit by the leadership of the Female Architects of Nigeria (FAN) to the TETFund headquarters in Abuja, Executive Secretary Arc. Sonny Echono said the Fund is committed to supporting research initiatives capable of delivering practical solutions to Nigeria’s housing challenges. He explained that TETFund’s National Research Fund has been expanded to support innovation beyond universities and other tertiary institutions, allowing broader participation in research that addresses national development priorities.

Echono expressed concern over Nigeria’s continued reliance on imported construction materials, noting that nearly 80 per cent of the building materials used in the country are sourced from abroad. He challenged architects and researchers to intensify efforts toward developing indigenous alternatives that are affordable, environmentally sustainable, and capable of strengthening local manufacturing while creating employment opportunities.

According to the TETFund boss, greater investment in research and innovation would help lower construction costs, improve housing quality, and promote climate-responsive building solutions suited to Nigeria’s environment. He added that translating research findings into commercial applications would strengthen the construction industry and contribute significantly to national economic development.

Echono also encouraged professionals within the built environment to take advantage of TETFund’s research funding opportunities and collaborate with universities, research institutes, and industry stakeholders to develop scalable housing solutions capable of addressing Nigeria’s estimated housing deficit.

Stakeholders believe that combining research, innovation, local material development, and stronger collaboration between academia and industry will accelerate affordable housing delivery, reduce import dependence, and improve the long-term sustainability of Nigeria’s housing sector.

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The Minister of Works, David Umahi, has called for a reduction in cement prices in Nigeria, urging manufacturers to support the Federal Government’s infrastructure and housing development efforts by making the product more affordable.

Umahi made the appeal during the rebranding ceremony of Lafarge Africa Plc to HBM. He noted that cement remains a critical component of road construction, housing projects, and other infrastructure developments, stressing that lower prices would help accelerate ongoing projects and reduce construction costs nationwide.

The minister expressed concern over the high cost of cement despite the availability of raw materials and local production capacity in the country. He said affordable cement prices would not only benefit government projects but also ease the financial burden on individuals and private developers undertaking building projects.

Speaking at the event, officials of HBM reaffirmed the company’s commitment to maintaining quality standards and contributing to Nigeria’s economic growth through continued investment in manufacturing and sustainable business practices.

Industry stakeholders noted that cement prices have remained a major concern for builders and property developers, with rising construction costs affecting housing delivery and infrastructure expansion across the country. They added that stable and affordable pricing could significantly improve access to housing and stimulate activity within the construction sector.

Analysts believe that collaboration between government and cement manufacturers will be essential to addressing cost challenges and supporting the country’s broader development objectives, particularly in housing and infrastructure.

The minister reiterated the government’s commitment to expanding infrastructure and creating an enabling environment for industrial growth while encouraging manufacturers to align with national development priorities.

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Nigeria’s housing sector is facing fresh pressure as the cost of a 50-kilogram bag of cement continues to rise sharply, with prices reaching as high as ₦15,000 in some locations nationwide.

The increasing cost has triggered concerns from the Real Estate Developers Association of Nigeria (REDAN), which warns that the trend could slow housing development, delay projects and worsen Nigeria’s growing housing deficit.

Cement Prices Surge Above 30 Percent

Industry data indicates that cement prices have experienced a steep increase within a short period.

A bag of cement that sold for about ₦7,500 in late 2025 reportedly rose to between ₦9,000 and ₦10,000 in early 2026 before climbing further to between ₦11,500 and ₦15,000 depending on location and brand.

The latest increase represents a rise of more than 30 percent in just a few months, making cement one of the most volatile construction inputs in Nigeria.

Developers Face Rising Project Costs

For real estate developers already operating in a difficult business environment, the increasing cost of cement is creating additional pressure.

REDAN warned that because cement accounts for a substantial share of construction costs, rising prices directly affect project viability.

The association noted that some developers are already scaling back projects, delaying delivery timelines and reconsidering planned investments.

According to industry stakeholders, the situation is particularly difficult for low- and middle-income housing developments where affordability margins are already narrow.

Other Building Materials Also Recording Price Hikes

The cement crisis is occurring alongside increases in other construction materials.

Reports indicate that:

• Steel prices have risen by roughly 20 percent
• Sharp sand costs increased by about 25 percent
• Timber and other construction materials have also recorded sharp increases

These combined increases are significantly driving up the total cost of housing delivery.

Rent Prices Rising in Major Cities

The effect of rising construction costs is gradually spreading into Nigeria’s rental market.

In cities such as Lagos and Abuja, reports suggest annual rent for self-contained apartments has increased sharply.

Some units previously rented at about ₦400,000 annually now reportedly cost between ₦800,000 and ₦1.5 million.

This trend is increasing pressure on households already dealing with inflation and declining purchasing power.

Concerns Over Construction Quality

Industry experts have also raised concerns that rising material prices may encourage some developers to cut costs through the use of lower-quality materials.

Stakeholders warn that such practices could create safety risks, especially as Nigeria continues to record cases of building collapse.

They stress that maintaining construction standards remains critical despite current economic pressures.

REDAN Calls for Government Intervention

REDAN has urged the Federal Government and regulatory agencies to intervene through coordinated measures aimed at stabilising the building materials market.

The association recommended:

• Improved supply chain efficiency
• Support for local production of construction inputs
• Greater pricing transparency
• Stronger engagement with stakeholders across the value chain
• Increased investment in alternative building technologies

Industry leaders warn that without urgent intervention, Nigeria’s affordable housing goals may become increasingly difficult to achieve.

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Stakeholders in Nigeria’s construction and housing sector have raised concerns over the rising cost of cement, warning that the current price of about ₦12,000 per 50kg bag could undermine efforts to achieve affordable housing across the country.

They argue that continued price increases in cement and other key building materials are making housing development increasingly expensive for both developers and individual homebuilders.

A market survey in parts of the Federal Capital Territory (FCT) shows that cement prices currently range between ₦11,800 and ₦12,000 per bag, depending on brand and location.

The development comes shortly after the Federal Government included cement among items restricted under its updated import prohibition list, alongside soaps, fertilisers, and several other goods under the 2026 fiscal policy framework.

The policy, which took effect from April 1, 2026, is part of the ECOWAS Common External Tariff arrangement aimed at regulating trade and boosting local production.

However, industry players say the policy environment has not translated into price stability in the domestic market.

Real estate expert Jide Fasuyi described the rising cost of cement as a major threat to housing delivery in Nigeria, especially at a time when government and private developers are trying to bridge the country’s housing deficit.

He questioned the justification for repeated price hikes despite the availability of raw materials used in cement production within Nigeria.

“It is disheartening to see how much Nigerians now pay for essential building materials like cement,” Fasuyi said. “Prices are increasing almost daily, and there is no clear justification for it.”

He added that raw materials such as limestone, clay, silica sand, gypsum, and iron ore are abundantly available locally, making it difficult to justify persistent price increases.

According to him, rising cement prices will directly translate to higher housing costs.

“Clearly, this is a crisis for housing delivery. When cement prices go up, house prices automatically rise, making affordability impossible,” he said.

Civil engineer Chukwuebuka Vincent also expressed concern over the sharp increase in construction costs, noting that cement prices have more than doubled in the past three years.

He recalled that in 2023, cement sold between ₦5,500 and ₦6,000 per bag, compared to the current average of about ₦12,000.

“As a civil engineer supervising projects, I have seen several sites abandoned due to rising costs,” he said. “Clients are unable to continue funding construction because of inflation in building materials.”

Vincent noted that Nigeria remains one of the largest cement producers in West Africa, with major manufacturers such as Dangote Cement, Lafarge, and Ibeto Cement contributing significantly to output.

He warned that sustained price increases would continue to push housing out of reach for many Nigerians.

“Affordable housing will remain difficult to achieve as long as cement prices stay this high,” he added.

Meanwhile, the Executive Director of the Housing Development Advocacy Network (HDAN), Barrister Festus Adebayo, said rising fuel prices are further worsening Nigeria’s housing crisis.

He explained that increased transportation and production costs are driving up prices of essential building materials.

“Cement, iron rods, tiles, and fittings have all become more expensive due to higher logistics costs linked to fuel prices,” he said.

Adebayo added that contractors are now passing increased operational costs to end users, making housing less affordable for middle-income earners.

He noted that labour costs have also risen as workers demand higher wages to cope with transportation expenses.

“As a result, many housing units that were once affordable are now beyond the reach of average Nigerians,” he said.

He warned that without urgent intervention, the housing deficit in Nigeria will continue to widen as affordability declines.

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Housing experts in have raised fresh concerns over the rising cost of building materials, warning that increasing construction expenses are making housing less affordable and pushing rents higher across the country.

The (NIESV) has called on federal and state governments to urgently address the issue to prevent further pressure on the nation’s housing market.

Rising Construction Costs Driving Up Rent

Speaking ahead of the association’s annual NIESV Week in , the chairman of the Ondo State branch, , said the soaring prices of cement, steel, and other construction materials are significantly increasing the cost of building homes.

According to him, developers often pass these costs directly to tenants and property buyers, resulting in higher rents and property prices.

Experts note that Nigeria already faces a severe housing deficit estimated at over 22 million units, making it increasingly difficult for many citizens to afford decent accommodation.

Local Production of Materials Key to Reducing Costs

The estate surveyors stressed that promoting local production of construction materials could help stabilise prices and improve housing affordability.

They explained that Nigeria’s reliance on imported materials and expensive conventional construction inputs has contributed to rising development costs.

The association also encouraged the use of traditional building materials such as mud blocks and stone foundations, which can provide durability and natural insulation when properly produced.

According to the group, increased government support for locally manufactured materials in infrastructure projects could strengthen the domestic construction industry and reduce costs.

Government Urged to Treat Housing as a Social Service

Beyond reducing material costs, NIESV urged authorities to prioritise housing as a social service rather than leaving it entirely to market forces.

The association believes stronger government investment in public housing projects would help increase supply and ease pressure on rental prices.

Industry analysts also highlighted the importance of improved access to financing for developers, noting that high interest rates and limited credit options remain major obstacles to large-scale housing development.

Economic Pressures Affecting Nigeria’s Construction Sector

The rising cost of building materials has been linked to broader economic challenges such as inflation, currency volatility, and supply chain disruptions.

These factors have increased the prices of critical construction inputs like cement and reinforcement steel, slowing housing development and making new homes more expensive.

Experts warn that without targeted policy reforms, housing affordability in major cities could continue to deteriorate.

Outlook for Nigeria’s Housing Market

Nigeria’s housing sector remains vital to economic growth, urban development, and job creation. However, experts believe solving the country’s housing deficit will require coordinated policies that reduce construction costs, boost housing supply, and expand access to affordable financing.

Estate surveyors say tackling the high cost of building materials is a crucial step toward making housing more accessible for millions of Nigerians.

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A recent market survey shows that a 50-kilogramme bag of cement now sells for between ₦9,500 and ₦12,000 in many areas. Earlier in March 2025, the price had dropped to ₦7,800 after peaking at ₦15,000 in February 2024.

The continuous rise in cement prices has led to higher building costs and house rents across Nigeria. Many citizens are struggling to afford decent housing.

Speaking on the issue, real estate stakeholder Benjamin Udoka criticized the price hike. “It is painful that Dangote did not replicate his fuel price reduction strategy in cement. In some parts of Abuja, cement costs as much as ₦11,000 per bag. The government must act to control prices and reduce the burden on Nigerians,” Udoka said.

Maryam Abubakar, a resident of Dawaki, also called for immediate action to address the cement price increase in Nigeria.

Aliyu Wamakko, past national president and Board of Trustees member of the Real Estate Developers Association of Nigeria (REDAN), blamed the high prices on poor regulation and rising demand. “Cement consumption in Nigeria is higher than before. Basic economics shows that when demand exceeds supply, prices go up. About 70% of cement materials are sourced locally, yet prices remain high,” he explained.

Wamakko also noted that using cement for road construction adds more pressure to the demand. “The government needs to engage cement manufacturers as it did in March 2025 to reduce prices and ease economic hardship,” he advised.

Efforts to get comments from Dangote Group spokesman Anthony Chijiena and the Federal Competition & Consumer Protection Commission (FCCPC) were unsuccessful.

The National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation fell to 22.97% in May. Food inflation is also declining. However, housing costs remain high. For example, the rent for a self-contained apartment in Gwarimpa, Abuja, has risen from ₦700,000 to ₦1.5 million per year.

President Tinubu’s 3,112-unit housing project, started in February 2024, has not been completed. Also, the Senate’s investigation into cement price hikes since 2024 has not produced any results.

The cement price increase in Nigeria continues to worsen the housing crisis. Many stakeholders believe urgent government intervention is needed to protect citizens and stabilize the construction sector.

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