Rising Building Material Costs Put Fresh Pressure on Nigeria’s Real Estate Market

Rising building material costs are putting increasing pressure on the viability of real estate projects in Nigeria, forcing developers to reassess budgets, pricing and construction strategies as the cost of delivering new housing continues to climb.

The rising cost of construction is affecting one of the most important aspects of the property market, the ability of developers to deliver homes at prices that buyers and tenants can afford.

For developers, the pressure goes beyond the price of building materials. Higher input costs are coming alongside expensive financing, land acquisition, labour, energy, transportation and other development expenses, making it increasingly difficult to maintain the financial viability of projects.

Building materials account for a substantial portion of construction expenditure. As a result, significant changes in the prices of cement, steel, roofing materials, fittings, tiles, glass and other inputs can quickly change the economics of a housing project.

When costs increase after a development has already been planned or launched, developers are faced with difficult decisions.

They may have to absorb some of the additional costs, revise specifications, slow down construction, postpone projects or increase selling prices.

Each option carries implications for project profitability, delivery timelines and the ability of the market to absorb the completed properties.

Affordable housing faces greater pressure

The challenge is particularly significant for projects targeting low- and middle-income households.

Developers operating in this segment have limited room to increase prices because affordability is already one of the major constraints affecting effective demand for housing.

Recent industry reports have similarly linked rising prices of cement, steel, sand, wood and other construction inputs to delays, scaling down and, in some cases, suspension of housing projects.

Cement prices have been particularly important to the cost pressures facing developers.

Recent industry data cited by the Real Estate Developers Association of Nigeria showed that the price of a 50kg bag of cement, which was around N7,500 in the final quarter of 2025, increased to between N9,000 and N10,000 early in 2026 and subsequently reached between N11,500 and N15,000 in several parts of the country.

Other construction materials have also recorded increases.

A recent report by Panterra Real Estate Group found that prices of some key structural and finishing materials had risen by hundreds of percentage points from their 2019 levels, with iron rods and other materials among those experiencing substantial increases.

Developers reassess project viability

The effect of rising material prices is not limited to individual construction inputs.

Developers must account for the combined impact of materials, land, finance, labour, infrastructure and logistics when determining whether a project can be completed profitably.

Industry stakeholders have said this is making it more difficult to predict the final cost of developments, particularly for projects with long construction periods.

A project that appears financially viable at the planning stage can become more expensive to complete if the prices of major inputs rise significantly during construction.

This creates additional uncertainty for developers, particularly when properties have already been marketed or sold at prices based on earlier cost estimates.

Developers may therefore have to review their construction specifications, procurement strategies and project timelines to manage the impact of changing prices.

Impact on homebuyers and tenants

The pressure on developers can eventually affect consumers.

Where developers are unable to absorb higher construction costs, some of the additional expenses may be reflected in the prices of newly completed properties.

This can make homeownership more difficult for households that are already struggling with limited incomes and high financing costs.

The rental market can also be affected because landlords and property investors may seek to recover higher development and maintenance costs through rents.

Recent reporting has linked rising development costs in major Nigerian cities to increases in residential rents, particularly in Lagos and Abuja.

For prospective homeowners, the combination of higher property prices and expensive mortgage financing can further widen the gap between household incomes and the cost of purchasing a home.

Housing supply could also be affected

Another concern is the potential effect of rising construction costs on the volume of housing delivered to the market.

If developers postpone projects or reduce the scale of planned developments because of rising costs, fewer new homes may enter the market.

This is particularly significant for Nigeria, where demand for housing continues to grow as the population expands and more people move into urban centres.

The pressure on supply could become more pronounced if affordable housing projects are disproportionately affected because such projects generally operate within tighter price and profit margins.

Industry stakeholders have therefore continued to call for measures capable of stabilising the building materials market and supporting housing delivery.

Imported materials add to the pressure

The cost of building materials is also influenced by Nigeria’s exposure to imported construction products.

A Panterra report noted that between 60 and 80 per cent of some finishing materials, including tiles, sanitary ware and window fittings, are imported. It linked the price increases to factors including currency depreciation, import exposure and rising production costs.

Changes in foreign exchange conditions can therefore affect the cost of materials and components that developers depend on.

For developers, this can make budgeting more difficult and increase the risk of cost overruns, especially on projects that require imported finishing materials.

Industry calls for intervention

The Real Estate Developers Association of Nigeria has called for greater engagement between government and stakeholders across the building materials value chain to address price instability.

REDAN President, Oba Akintoye Adeoye, has warned that the combined effect of rising construction costs is putting financial pressure on developers and contributing to project delays, scaling down and suspension.

The association has also raised concerns that persistent cost increases could make homeownership more difficult for Nigerians and potentially encourage the use of substandard materials by individuals seeking to reduce construction expenses.

Recent industry reports have similarly called attention to the need for greater local production and measures that can reduce dependence on imported construction inputs.

Real estate sector faces a difficult balance

Nigeria’s real estate sector is therefore facing a difficult balance between rising development costs and the need to keep homes within the reach of buyers and tenants.

Developers must continue to manage land, financing, labour, materials, infrastructure and logistics while responding to changing purchasing power.

For the wider housing market, the challenge extends beyond developers.

Higher construction costs can affect housing supply, property prices, rents, mortgage affordability and the pace at which new developments are delivered.

As Nigeria continues to require more housing, the stability and affordability of construction inputs will remain an important factor in determining how quickly developers can bring new homes to the market.

The post High Material Prices Threaten Housing Affordability and Project Delivery appeared first on Housing TV Africa.

FTSE Russell has included 10 Nigerian companies in its Frontier Index Series as Nigeria prepares to regain Frontier Market status after nearly three years outside the classification.

The newly eligible companies are Aradel Holdings, Dangote Cement, First HoldCo, Guaranty Trust Holding Company, MTN Nigeria Communications and Nestlé Nigeria.

Others are Nigerian Breweries, Presco, Stanbic IBTC Holdings and Zenith Bank.

FTSE Russell identified all 10 companies as newly eligible large-cap stocks in its September 2026 index review.

Their inclusion will become effective when Nigeria’s reclassification from Unclassified to Frontier Market status takes effect at the opening of trading on September 21, 2026.

The FTSE Frontier Index Series provides benchmarks for the performance of large-, medium- and small-cap companies across eligible frontier markets.

The indices can be organised by company size, region, country and industry. They are also used by institutional investors, asset managers and investment funds to measure performance and create index-tracking products.

The addition of Nigerian companies could increase their visibility among international investors whose portfolios or investment strategies are linked to FTSE Russell benchmarks.

It could also support market liquidity and foreign portfolio participation, although index inclusion does not guarantee that investors will purchase the affected shares.

Nigeria was removed from the Frontier Market category and assigned Unclassified status in September 2023.

The decision followed persistent difficulties faced by international institutional investors in accessing foreign exchange and repatriating investment proceeds from Nigeria.

The country’s journey towards reclassification began in October 2025, when FTSE Russell placed Nigeria on a watchlist after observing improvements in foreign-exchange liquidity, market accessibility and capital repatriation.

In April 2026, the global index provider announced that Nigeria would return to Frontier Market status on September 21.

The process was later subjected to further assessment after the Nigerian capital market transitioned from a T+2 to a T+1 settlement cycle on June 1, 2026.

Under the T+1 system, equity trades are settled one business day after the transaction, compared with two business days under the previous arrangement.

Some international investors expressed concerns that the shorter settlement period could create a practical prefunding requirement, particularly for institutions needing additional time to complete foreign-exchange transactions and transfer money across markets.

The concerns led to consultations involving FTSE Russell, NGX Group, the Securities and Exchange Commission, global custodians and international institutional investors.

Following further assessment, FTSE Russell confirmed on August 27 that Nigeria’s return to the Frontier Market category would proceed as planned.

The selection of Dangote Cement provides additional international visibility for a company that plays a major role in Nigeria and Africa’s building-materials market.

The cement producer is separately pursuing a secondary listing on the London Stock Exchange as part of efforts to broaden its shareholder base and improve access to international capital.

Nairametrics reported that companies categorised as Nigerian megacaps added ₦46.69 trillion in market value between December 31, 2025, and August 31, 2026.

The publication defines a megacap company as one with a market capitalisation of at least ₦5 trillion.

Nigeria’s return to the FTSE Frontier Index Series represents an important step in rebuilding the international credibility of the country’s capital market.

Sustaining the benefits will depend on continued foreign-exchange stability, efficient settlement, reliable capital repatriation and investor confidence in Nigeria’s regulatory environment.

The post Dangote Cement Among 10 Nigerian Companies Added to FTSE Frontier Index appeared first on Housing TV Africa.

The dream of building a personal home is becoming increasingly difficult for young Nigerians as rising construction costs, expensive land, limited mortgage access and declining purchasing power combine to weaken housing affordability.

For many young people, securing employment and maintaining regular savings no longer provide a reliable path to homeownership. A growing proportion of household income is now spent on food, rent, transportation, electricity and other necessities, leaving little for land acquisition or construction.

A 2024 savings report by PiggyVest indicated that 65 per cent of Nigerians surveyed either earned below ₦100,000 monthly or had no income.

Only 57 per cent reportedly had some form of financial safety net, down from 64 per cent in the preceding year. The report also found that just 15 per cent had increased their savings, while 19 per cent of those who previously maintained emergency funds had lost them.

The income challenge has been compounded by sharp increases in the prices of essential building materials.

A March 2026 market report placed the price of a 50-kilogramme bag of cement at between ₦11,500 and ₦15,000, compared with about ₦2,500 to ₦3,000 in 2019.

This represents an increase of as much as 367 per cent within seven years.

For a residential project requiring hundreds of bags of cement, the price difference can add several millions of naira to the construction budget.

Other building inputs, including reinforcement steel, sand, granite, roofing sheets, tiles, electrical materials and plumbing products, have also recorded substantial price increases.

Some major building materials reportedly rose by more than 60 per cent, with the increase attributed to inflation, exchange-rate instability, transportation expenses, taxes and higher production costs.

These price changes create severe difficulties for individuals constructing their homes in phases. A budget prepared at the foundation stage may no longer be realistic by the time the owner is ready to begin roofing or finishing work.

Land acquisition presents another major obstacle. In Lagos, Abuja and other rapidly growing urban centres, the cost of land can consume a substantial portion of a young worker’s lifetime savings before construction even begins.

Prospective homeowners must also pay for surveys, title documentation, planning approvals, architectural drawings and other preliminary requirements.

Borrowing is equally difficult. Commercial interest rates remain too high for many individuals seeking loans to build or purchase residential properties.

Although mortgage products are available, eligibility conditions, equity contributions, property-documentation requirements and repayment obligations can exclude workers with modest or irregular incomes.

Labour and professional services add another layer of expense. Residential construction requires masons, carpenters, plumbers, electricians, roofers, painters and tilers.

Developers and individual builders must also engage qualified architects, engineers and quantity surveyors to ensure that projects comply with planning requirements and safety standards.

Attempts to reduce costs by avoiding competent professionals can expose homeowners to defective construction, project abandonment, building failure and future legal problems.

The seven major pressures affecting young prospective homeowners are declining disposable income, expensive cement, rising prices of other materials, high land costs, costly credit, increased labour and professional fees, and inflation during construction delays.

The situation underscores the need for housing policies that recognise the income realities of Nigeria’s young population.

Government interventions could include serviced land schemes, single-digit mortgages, rent-to-own programmes, housing cooperatives, affordable building-material initiatives and support for professionally managed incremental construction.

Reducing the cost of homeownership will require more than encouraging young Nigerians to save. It demands coordinated reforms covering land, finance, infrastructure, construction materials, wages and property documentation.

Without such reforms, owning a home could remain beyond the reach of millions of young Nigerians despite their willingness to work, plan and save.

The post 7 Factors Making It Harder for Young Nigerians to Build Homes in 2026 appeared first on Housing TV Africa.

Nigeria’s manufacturing sector continued to face prohibitively expensive credit in 2025, with the average interest rate on industrial loans standing at 32.1 per cent.

Although the figure represented an improvement from the 35.6 per cent average recorded in 2024, borrowing costs remained too high to support sustainable industrial expansion and long-term investment.

Data from the Manufacturers Association of Nigeria showed that the average lending rate was 32.5 per cent during the first half of 2025 before declining slightly to 31.8 per cent in the second half.

Despite the moderation, every major manufacturing segment surveyed by MAN recorded an average borrowing rate above 30 per cent.

Chemical and pharmaceutical manufacturers faced the lowest annual average rate at 30.4 per cent, followed by wood, furniture and related producers at 30.8 per cent.

Manufacturers of textiles, clothing, carpets, leather and footwear obtained loans at an average rate of 31.6 per cent.

Metal, iron, steel and fabricated-metal producers paid an average of 32.3 per cent, while electrical and electronics manufacturers faced a rate of 32.4 per cent.

The average borrowing rate for food, beverage and tobacco companies stood at 32.5 per cent. Plastic, rubber and foam manufacturers paid 32.6 per cent.

Motor vehicle and miscellaneous assembly companies recorded an average lending rate of 32.8 per cent. The pulp, paper, printing, publishing and packaging sector faced the same rate.

Non-metallic mineral-product manufacturers recorded the highest average borrowing cost at 33 per cent.

The high rate in the non-metallic mineral sector could have direct implications for Nigeria’s housing and construction industries because the segment produces important building inputs, including cement, ceramics, glass, tiles and related materials.

When manufacturers finance production, machinery, raw materials and expansion at interest rates above 30 per cent, part of the cost may eventually be transferred to consumers through higher product prices.

Elevated borrowing costs can also discourage companies from increasing capacity, upgrading equipment or developing new factories. This could further weaken local production and increase dependence on imported goods.

MAN attributed the slight reduction in lending rates during 2025 to improving economic conditions, including lower headline inflation, greater stability in energy prices and the appreciation of the naira.

However, the association maintained that the cost of credit remained a serious obstacle to manufacturing competitiveness and output growth.

Manufacturers require financing to purchase raw materials, maintain equipment, meet working-capital obligations and expand production. At prevailing commercial lending rates, many businesses may struggle to generate returns sufficient to cover their financing costs.

The situation is particularly concerning for small and medium-sized manufacturers, which generally have fewer financing options and weaker balance sheets than large corporations.

The figures suggest that Nigeria must move beyond modest reductions in commercial lending rates and develop more accessible, long-term industrial finance for productive sectors.

Without affordable credit, efforts to increase local manufacturing, reduce building-material costs, create jobs and improve the competitiveness of Nigerian products could remain constrained.

The post Nigerian Factories Still Borrow Above 30% Despite Modest Rate Decline appeared first on Housing TV Africa.

A fire has destroyed shops and goods at the Jabi Building Materials Market in Abuja, leaving traders facing losses estimated at millions of naira.

The blaze reportedly started at about 03:00 local time on Sunday at the market, which is located opposite Chida Hotel in the Jabi district of the Federal Capital Territory.

An eyewitness told the Nigerian Television Authority that traders and residents rushed to the market after receiving an emergency call about the fire.

He said his brother-in-law owned two shops and a storage facility at the affected plaza. One shop was saved, while the second shop and the storage facility were destroyed.

According to the witness, roofing materials valued at more than ₦20 million were lost. Some of the goods had reportedly been restocked shortly before the fire broke out.

No deaths were reported, although the full extent of the damage to other businesses at the market had not been determined at the time of publication.

The cause of the fire also remains unknown, and emergency authorities have yet to release an official assessment of the incident.

The latest outbreak is expected to renew concerns about fire-prevention measures, emergency access and insurance protection in Nigeria’s major commercial markets.

Investigations are expected to establish how the fire started and determine the total value of the property destroyed.

The post BREAKING: Fire destroys shops at Jabi building materials market in Abuja appeared first on Housing TV Africa.

Nigeria’s headline inflation rate is expected to continue easing in the coming months, although rising food prices remain a major source of pressure, according to analysts at Comercio Partners.

The outlook followed the latest inflation figures from the National Bureau of Statistics, which showed that headline inflation declined to 15.43 per cent year-on-year in July 2026, compared with 15.91 per cent in June.

The July figure represented the second straight monthly decline in headline inflation and the largest monthly moderation recorded so far this year. Analysts said the trend suggests that underlying price pressures across parts of the economy are beginning to weaken.

A key factor behind the improvement was the sharp decline in core inflation, which excludes some volatile items. Core inflation fell to 14.97 per cent in July, from 15.92 per cent in June, while the month-on-month rate dropped substantially to 0.15 per cent, compared with 1.66 per cent in the previous month.

Comercio Partners said the movement indicated weaker underlying inflationary pressure, supported in part by reduced exchange-rate volatility. The development could provide some relief for businesses and households facing higher costs, particularly in sectors that depend heavily on imported inputs.

Food prices, however, moved in the opposite direction. Food inflation increased to 20.31 per cent year-on-year in July, up from 17.52 per cent in June. On a monthly basis, food inflation also accelerated to 5.56 per cent, compared with 3.75 per cent in June.

The analysts linked the increase to constraints affecting agricultural supply, higher logistics and distribution expenses, seasonal influences and wider structural challenges within the food supply chain. They said these pressures are not issues that monetary policy can address on its own.

The divergence between food and core inflation is particularly relevant to household spending. Food represents a substantial portion of expenditure for many Nigerian households, making increases in food prices an important factor in the cost of living even when the overall inflation rate is declining.

Despite the increase in food inflation, several major expenditure categories recorded lower contributions to headline inflation during July. The contribution of food and non-alcoholic beverages declined from 6.37 percentage points in June to 6.18 percentage points in July.

Restaurants and accommodation also recorded a lower contribution, falling from 2.06 percentage points to 1.99 percentage points. Transport declined from 1.70 percentage points to 1.64 percentage points, while housing, utilities and fuels fell from 1.34 percentage points to 1.30 percentage points.

According to Comercio Partners, the combined decline in contributions from these four expenditure divisions represented about 75 per cent of the 0.48 percentage-point reduction in headline inflation recorded between June and July.

The figures also have implications for Nigeria’s housing and construction sectors. Housing-related costs are influenced by inflation through the prices of building materials, transportation, energy and other inputs, while higher living costs can affect households’ ability to save for home purchases, meet rent obligations and service mortgages.

For developers and construction companies, a sustained moderation in underlying inflation could improve cost forecasting and financial planning. However, continued food-price increases could keep pressure on household budgets and limit the amount of income available for housing and other long-term spending.

The July data therefore presents a mixed picture for the wider economy. While easing core inflation and reduced exchange-rate volatility point to moderating price pressures, persistent food inflation remains a significant challenge for households and businesses.

For the housing and infrastructure sectors, the direction of inflation will remain important because changes in prices affect construction costs, household purchasing power, project financing and the broader affordability of housing.

The post Nigeria Inflation Slows as Food Prices Keep Pressure on Households appeared first on Housing TV Africa.

A former President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Wamakko, has urged the Federal Government to declare a state of emergency on rising building costs instead of focusing on rent regulation, arguing that the country’s housing affordability crisis is fundamentally driven by the high cost of housing production.

Speaking in Abuja, Wamakko said soaring prices of construction materials, land acquisition, labour, infrastructure, and financing have significantly increased the cost of developing residential properties, making it impossible for developers to offer affordable rental housing. He maintained that high rents are a consequence of expensive housing production rather than the primary cause of the housing crisis.

According to him, the prices of cement, steel reinforcement, roofing materials, electrical fittings, plumbing supplies, and other essential construction inputs have risen sharply in recent years, while labour and financing costs have also increased substantially. He noted that developers cannot recover their investments if rental prices are artificially suppressed without addressing these underlying production costs.

Wamakko called on the Federal Government to prioritise policies that reduce the cost of building materials, expand access to affordable long-term financing, strengthen local manufacturing, improve energy supply, lower transportation costs, and encourage large-scale housing development. He argued that such measures would increase housing supply and naturally reduce rental prices over time.

He warned that attempts to regulate rents without tackling the economic realities of housing development could discourage private investment in the real estate sector and worsen the country’s housing shortage. Instead, he advocated market-driven solutions supported by government policies that lower construction costs and stimulate investment in affordable housing.

Housing experts have consistently maintained that reducing construction costs, expanding mortgage financing, simplifying land administration, and increasing infrastructure investment are essential to improving housing affordability and addressing Nigeria’s estimated housing deficit. They believe that boosting housing supply remains the most sustainable strategy for easing pressure on rental prices while supporting long-term economic growth.

The post Wamakko Urges FG to Cut Building Costs to Solve Nigeria’s Housing Crisis appeared first on Housing TV Africa.

A new chapter has opened in Nigeria’s building materials industry as Lafarge Africa Plc officially unveiled its new corporate identity and name, HBM Nigeria Plc, following a change in ownership structure and strategic direction.

The rebranding marks a significant milestone in the company’s transformation journey and aligns with its integration into the global operations of Huaxin Building Materials Group, a leading Chinese construction materials company.

The company assured stakeholders that the transition to HBM Nigeria Plc would not affect its operations, workforce, customers, shareholders or longstanding commitment to supporting Nigeria’s economic growth and infrastructure development.

Huaxin, a Chinese building materials giant established in 1907, recently acquired the controlling stake previously held by Holcim in Lafarge Africa, paving the way for the company’s new identity.

Speaking during the unveiling ceremony in Lagos, Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, described the rebranding as a strategic move designed to position the company for future growth while maintaining its strong presence in Nigeria’s construction sector.

“HBM Nigeria Plc represents an exciting new chapter in our journey as a leading building solutions company. While our corporate identity is evolving, our commitment to Nigeria remains unwavering,” he said.

Alade-Akinyemi noted that the company would continue delivering high-quality cement, concrete, aggregates and innovative building solutions aimed at supporting infrastructure development, housing expansion and industrialisation across the country.

According to him, the transition will be implemented through a structured and phased process across the company’s nationwide operations to ensure seamless business continuity.

He added that the company remains focused on operational excellence, innovation, sustainability and long-term value creation for shareholders and other stakeholders.

Chairman of HBM Nigeria Plc, Gbenga Oyebode, said the new corporate identity is designed to strengthen the company’s position for long-term success while preserving the values and principles that have defined its legacy over the years.

Oyebode expressed confidence that the company would continue to create sustainable value, strengthen stakeholder trust and contribute significantly to Nigeria’s economic development.

Also speaking at the event, Minister of Works, David Umahi, commended the company for its contributions to Nigeria’s infrastructure development through the execution of major construction and building projects across the country.

The rebranding signals a new era for the company as it seeks to leverage global expertise, advanced technology and expanded industrial collaboration to deepen its impact on Nigeria’s construction and infrastructure sectors.

The post Lafarge Africa Rebrands as HBM Nigeria Following Huaxin Acquisition appeared first on Housing TV Africa.

The Minister of Works, David Umahi, has called on cement manufacturers to urgently reduce the price of cement, warning that the rising cost is putting Nigeria’s infrastructure development projects under serious strain.

Umahi made the demand in Lagos during the unveiling of the new corporate identity of Lafarge Africa Plc, which has now been rebranded as HBM Nigeria Plc following its acquisition by China’s Huaxin Building Materials Group.

The minister said the continuous increase in cement prices is already affecting the execution of federal road and bridge projects nationwide, with contractors increasingly pushing for upward reviews of existing contracts.

‘Reduce Cement Prices Now’ – Umahi Tells Manufacturers

Addressing industry stakeholders, investors, and government officials, Umahi insisted that cement producers must play a more active role in supporting national development by ensuring affordability.

“I want to insist that Lafarge, now HBM, and other manufacturers of cement should reduce their prices,” the minister said.

He warned that the Federal Government would begin formal engagements with cement manufacturers from July 1 to address pricing concerns and safeguard ongoing infrastructure projects.

According to him, the cement industry is benefiting significantly from government-led infrastructure expansion and must reciprocate by ensuring fair pricing.

Government Moves to Stabilise Construction Costs

Umahi explained that escalating cement costs are increasing project execution risks and placing additional financial pressure on contractors handling public works across the country.

He added that the planned engagement with manufacturers will focus on achieving a balance between industry profitability and national infrastructure needs.

Lafarge Rebrands as HBM Nigeria Plc

At the same event, the company formerly known as Lafarge Africa Plc officially unveiled its new identity as HBM Nigeria Plc, marking a new phase following its acquisition by Huaxin Building Materials Group.

Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, said the rebranding reflects a new corporate direction while maintaining operational stability.

“HBM Nigeria Plc represents an exciting new chapter in our journey as a leading building solutions company. While our corporate identity is evolving, our values remain the same,” he said.

He assured stakeholders that the transition would not affect operations, workforce, or customer relationships, noting that the process would be implemented in phases across the company’s facilities nationwide.

Company Reaffirms Commitment to Nigeria

Chairman of HBM Nigeria Plc, Gbenga Oyebode, also reaffirmed the company’s long-term commitment to Nigeria’s economic development, describing the transition as a strategic step for sustainable growth.

He expressed confidence that the new identity would strengthen investor confidence, enhance stakeholder trust, and support long-term value creation.

Industry Presence and Capacity

The unveiling ceremony attracted top government officials, state representatives, traditional rulers, and industry leaders.

HBM Nigeria Plc remains one of the country’s largest cement producers, with operations across Ogun, Gombe, and Cross River States, as well as ready-mix facilities in Lagos, Abuja, and Port Harcourt. The company has an installed capacity of 10.5 million metric tonnes per annum.

The post Umahi Orders Cement Price Reduction, Warns High Costs Threaten Infrastructure Delivery appeared first on Housing TV Africa.

Nigeria’s housing and construction sector continues to face mounting pressure as the prices of building materials rise sharply, driven by inflation, exchange rate volatility, multiple taxation, high transportation costs and increasing production expenses.

A review of market prices shows that key construction materials, including cement, sand, stones and tiles, have recorded significant increases over the past year, with some products rising by more than 60 per cent and others nearly doubling in price.

A 50kg bag of cement, which sold for between N8,500 and N10,000 in 2025, now costs as much as N13,000 in several parts of the country, depending on location and supply conditions.

Similarly, the cost of sharp sand has risen dramatically from between N40,000 and N80,000 per tipper in 2025 to between N170,000 and N350,000, reflecting higher fuel, extraction and transportation costs.

The price of local stones has also climbed sharply, increasing from about N180,000 per tonne in 2025 to as much as N350,000 in some markets, further raising the cost of structural construction projects.

Finishing materials have not been exempt from the trend. A carton of locally manufactured tiles that previously sold for between N4,500 and N6,000 now costs between N7,500 and N8,500. Imported tiles have witnessed even steeper increases due to foreign exchange fluctuations, customs duties and rising import costs.

However, a few products have recorded slight reductions. Some paint manufacturers have marginally lowered prices due to weak demand from homeowners who have postponed renovation and repainting projects. A 20-litre container of emulsion paint, which previously sold for N18,000, now sells for about N17,200, while gloss paint has declined slightly from N20,000 to N19,900.

The persistent rise in building material costs has slowed housing development activities across the country, increased project delivery costs and forced many developers to delay or suspend construction projects.

Manufacturers of cement-based products, including roofing sheets, ceiling boards, paving stones and other concrete products, have also adjusted prices upward in response to rising input costs.

According to data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate increased to 15.69 per cent in April 2026 from 15.38 per cent in March, highlighting continued pressure on production, logistics and distribution costs within the construction value chain.

Industry stakeholders have warned that unless inflation moderates, exchange rate stability improves and local production capacity expands, construction costs are likely to remain elevated, further worsening the nation’s housing deficit.

A landlord, Mr. Stanley Nnabuike, attributed the rising prices to foreign exchange instability and increasing operational costs.

“The exchange rate is not stable, and the high cost of fuel has increased the cost of building materials because companies use fuel to power production equipment. Labour costs have also gone up significantly,” he said.

He added that suppliers who purchased materials at higher costs are unable to lower prices without incurring losses.

A quantity surveyor and construction cost expert, Goodman Etiowo, blamed the situation on structural challenges within the building materials industry, particularly limited competition in cement production and Nigeria’s heavy dependence on imported materials.

According to him, increased competition among manufacturers would help reduce construction costs and improve affordability.

Etiowo also noted that imported products such as tiles, sanitary wares and POP fittings remain vulnerable to exchange rate fluctuations, which continue to push up prices.

Architect Kingsley Chilaka said rising material costs reflect broader weaknesses in Nigeria’s construction supply chain, including high import duties, production expenses and inadequate market regulation.

“Most of these companies are heavily taxed, including on imported building materials during the clearing process. By the time they incur such costs in production and importation, the burden is transferred to the end-users,” he said.

Chilaka also criticised the absence of effective price regulation, arguing that manufacturers and suppliers largely determine market prices without adequate monitoring mechanisms.

“There is no proper regulation. Different companies fix prices on their own and there is no effective monitoring system to stabilise the market,” he added.

Stakeholders warn that without targeted interventions to stabilise inflation, strengthen local manufacturing and address regulatory bottlenecks, the rising cost of building materials could further constrain housing delivery and deepen affordability challenges for millions of Nigerians.

The post Building Material Prices Surge as Inflation, FX Crisis Push Construction Costs Higher appeared first on Housing TV Africa.