Nigeria’s real estate sector continues to face significant financing challenges that are slowing down housing and commercial property development across the country.

Industry observers note that access to adequate funding remains one of the biggest barriers to project execution, as developers struggle to secure affordable and long-term capital needed for large-scale construction.

High borrowing costs from commercial banks, combined with short repayment periods, have made it difficult for many developers to sustain ongoing projects. In several cases, construction work slows down or is abandoned due to financial pressure.

The lack of affordable mortgage options also continues to limit the sector’s growth. Many potential homebuyers are unable to access financing, reducing demand for newly built properties and discouraging large-scale investments in housing development.

These financing constraints have contributed to Nigeria’s widening housing deficit, as population growth and urbanisation continue to outpace the supply of new homes in major cities.

Rising construction costs have further worsened the situation, with inflation and currency fluctuations increasing the cost of building materials and overall project budgets. This has forced developers to adjust designs, delay completion timelines, or seek additional funding that is often difficult to obtain.

Beyond developers, the funding gap has wider economic implications. The real estate sector supports multiple industries, including construction, manufacturing, engineering, and professional services. When projects are delayed, job creation and economic activity across these sectors are also affected.

Experts suggest that addressing these challenges will require coordinated efforts between government, financial institutions, and private investors. Improved access to long-term financing, development of flexible mortgage systems, and alternative funding models such as investment trusts and public-private partnerships are seen as key solutions.

Without stronger financing structures, analysts warn that Nigeria’s housing deficit will continue to grow, placing additional pressure on urban infrastructure and affordability.

The post Lack of Funds Stalls Real Estate Development in Nigeria appeared first on Housing TV Africa.

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.

The post Stakeholders Warn High Cement Price May Worsen Nigeria Housing Crisis appeared first on Housing TV Africa.

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.

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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.

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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.

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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.

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