Rising Rents Push Asaba Residents Deeper Into Housing Hardship

Residents of Asaba, Delta State, are facing increasing difficulty securing and retaining decent accommodation as rising rents, inflation, stagnant incomes and the wider cost-of-living crisis put greater pressure on household finances.

Asaba has continued to expand, with new roads, businesses and construction projects changing the city’s landscape. The state capital has also attracted people seeking employment, education, trade and better economic opportunities.

But behind the growth, many residents are struggling to keep up with the cost of housing.

For some households, finding accommodation has moved beyond a normal financial responsibility and become an annual struggle involving difficult choices between rent, food, transportation, school fees, electricity and healthcare.

A 2025 report on the State of Lagos Housing Market cited in the report indicated that rent could consume between 50 and 70 per cent of household income in some cases, reflecting the growing affordability challenge facing Nigerian households.

Residents also face additional costs from estate agents, legal fees and other charges, meaning the amount required to secure a property can be significantly higher than the advertised rent.

In parts of Asaba, a one-bedroom apartment can cost between N700,000 and N1m annually, while larger apartments command higher rents.

For workers whose earnings have not increased at the same rate as inflation, the cost of accommodation can consume a substantial portion of their income.

Workers struggle to keep up with rent increases

Ella, a civil servant living in Ugbolu, said she previously paid N400,000 annually for a three-bedroom apartment but now pays N700,000.

Her salary, however, has not increased by a similar margin, leaving less money available for savings and other family needs.

For Okafor Ikechukwu, a commercial tricycle operator and family breadwinner, the situation has become even more difficult.

His annual rent increased from N150,000 to N360,000, while his income did not rise accordingly. On some days, he said, he works for several hours without getting enough passengers.

Much of his earnings goes towards feeding his family, leaving little available for rent savings.

He said that while he was previously able to pay his rent once a year, he now sometimes has to make payments in instalments because raising the full amount at once is difficult.

Artisans are also feeling the pressure.

Paul Edward, a professional plumber who has worked in Asaba for more than 20 years and chairs the Plumbers Association, said his annual rent had increased from N145,000 to N450,000.

He said that after paying school fees, feeding his family and meeting other household expenses, saving enough money for rent had become increasingly difficult.

According to Edward, some artisans have resorted to living in unfinished buildings because they can no longer afford decent accommodation.

Owen Marvellous, a married commercial tricycle operator and father, said his housing needs changed after he started a family.

He explained that living in a single room was more manageable before marriage, but having a wife and children meant he needed a larger apartment.

The cost of moving into a bigger home, however, has become increasingly difficult to bear.

He said one-bedroom apartments can cost between N700,000 and N1m annually in some parts of Asaba, while agency and other charges add further pressure to prospective tenants.

Single mothers face additional housing pressure

For Doris, a single mother with one child, the housing challenge goes beyond rent.

She lives in a one-room apartment affected by poor drainage and flooding, making living conditions difficult.

Her concerns increased when her landlord threatened to remove the roof of the building during the rainy season.

Doris said she was terrified by the possibility of being left without a roof over her head.

She also faced the prospect of receiving a quit notice and, at one point, had to borrow money to raise enough funds to remain in her accommodation.

For a single-income household, the loss of accommodation could create wider consequences for the stability and security of the family.

Commercial rents squeeze businesses

The pressure is not limited to residential accommodation. Business owners are also dealing with increasing commercial rents.

Ikechukwu Emmanuel, who has been in the plumbing materials business for 15 years, said shops in Asaba now cost between N1m and N1.5m annually, depending on location and other factors.

He explained that when commercial rent is combined with residential accommodation, transportation, electricity, staff salaries and other operating costs, business owners can end up spending most of their earnings simply to remain in operation.

According to him, some entrepreneurs are now using money that would otherwise have gone into expanding their businesses to cover operating expenses.

Others, he said, have been forced to shut down after years of trading because the cost of maintaining their businesses became unsustainable.

Precious, a fashion designer in Okpanam, said rising shop costs had also affected her business.

She said that when a customer brings work worth N10,000, she may accept the amount without negotiating because she needs the money to meet her growing expenses.

“Rent keeps increasing, but my income has not increased at the same pace,” she said.

Housing demand outpaces supply

Estate agents in Asaba said the rental market had changed considerably in recent years.

Anthony, an estate agent with 12 years of experience in the city, said the market began changing significantly around 2023 as Asaba’s population grew and infrastructure improved.

According to him, demand for accommodation increased while the supply of available homes did not grow at the same pace.

Another estate agent, Gozie, attributed part of the increase in rents to higher construction costs.

He said the cost of building materials, labour, transportation and other development expenses had increased, with developers passing some of the additional costs on to tenants through higher rents.

Okolie Alexander, a building materials dealer, also said construction commodities had become more expensive.

He attributed the increases to fuel costs, transportation expenses, government policies and international economic conditions.

Economist links rent crisis to supply gap

Prof Anthony Monye-Emina, Head of the Department of Economics at Dennis Osadebay University, identified the imbalance between housing demand and supply as a major factor behind the rising rents.

He said Asaba was attracting more residents but affordable housing was not being developed quickly enough to meet the growing demand.

According to him, inflation has worsened the situation because the prices of goods and services continue to rise while wages do not automatically increase at the same pace.

As a result, households are forced to devote a larger share of their earnings to basic needs, leaving less money for savings, investments and emergencies.

Solomon Eyikwe, Chairman of the Asaba Branch of the Nigerian Institution of Estate Surveyors and Valuers, said Nigeria’s largely market-driven housing system gives private property owners significant control over rental prices.

He also pointed to exchange-rate fluctuations and inflation as factors that have increased the cost of imported building materials and property development.

Samuel Ekiyor, a married resident and father, expressed concern that continued increases in rent could eventually make it difficult for many workers to afford to live in Asaba.

Developing rural areas could ease pressure on cities

Monye-Emina said part of the response to rising urban housing demand should involve developing rural communities.

He argued that better roads, healthcare, schools and economic opportunities in rural areas could reduce the pressure driving people into cities such as Asaba.

According to him, reducing the need for people to move into urban centres could help moderate pressure on available housing.

The housing situation has broader consequences because accommodation costs affect household welfare, business operations and residents’ ability to save or invest.

The experiences of civil servants, artisans, commercial tricycle operators, traders, business owners and single parents in Asaba show how rising housing costs are affecting different categories of residents.

For many of them, the demand is not for luxury accommodation but for a decent home that can be sustained alongside other basic household expenses.

As rents continue to rise, residents are increasingly being forced to reduce spending, postpone plans, use instalment payments, borrow money or consider cheaper accommodation options.

The situation has also raised concerns about the ability of workers and small businesses to remain in the city as accommodation and operating costs continue to increase.

For many residents, a home that should provide security and stability is increasingly becoming another source of financial uncertainty.

The post Rising Rents Push Asaba Residents Deeper Into Housing Hardship appeared first on Housing TV Africa.

The Nigerian Institute of Architects (NIA), Kogi State Chapter, has called for practical action to address Nigeria’s housing challenges, urging professionals, policymakers and other stakeholders to promote affordable housing and greater use of indigenous building materials.

The call was made at the 2026 World Architecture Day and Annual General Meeting of the NIA, Kogi State Chapter, where stakeholders examined ways of translating the recognition of housing as a human right into practical housing solutions.

The Chairman of the Occasion, Arc. Kayode Oloninisi, Ph.D, FNIA, said the theme of the celebration, “Housing is a Human Right. Build It,” provided an opportunity for architects and other built-environment professionals to move beyond discussions and focus on solutions that could deliver decent, affordable and accessible homes to Nigerians.

Oloninisi, who was represented at the event by Associate Professor Okwenya Sunday, Head of the Department of Architecture at the Federal University Lokoja, said adequate housing was fundamental to human welfare and national development.

He noted that housing, alongside food and clothing, remained one of the basic needs of humanity, providing physical protection while also contributing to health, dignity, emotional security and overall wellbeing.

According to him, the theme adopted by the International Union of Architects (UIA) also reinforces the recognition of adequate housing under international human rights instruments, including the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights.

Oloninisi commended the Kogi State Chapter of the NIA for designing a programme that examined practical architectural, planning, financing and policy approaches to the housing challenges facing residents of the state.

He also praised the chapter for bringing together professionals to examine the theme from different perspectives and encouraged participants to use the event to strengthen professional development, networking and collaboration within the built environment.

Architects push indigenous building materials

The call for practical action was reinforced by the Chairman of the Kogi State Chapter of the NIA, Arc. John O. Attah, MNIA.

Attah said the chapter deliberately selected the theme, “Exploiting Indigenous Building Techniques and Materials as a Sustainable Solution to our Housing Deficit,” to draw attention to the potential of locally available resources in addressing Nigeria’s housing shortage.

He argued that Nigeria could no longer afford excessive dependence on imported building materials while millions of Nigerians continued to face difficulties accessing affordable housing.

According to him, the country has abundant raw materials that can be developed and used in construction through stronger collaboration between government, academic institutions, researchers, professionals, private investors and local communities.

He identified stabilised compressed earth blocks, bamboo composites, laterite-based finishes and pozzolana among the indigenous or locally adaptable technologies and materials that could help reduce construction costs while responding to Nigeria’s climatic and economic conditions.

Attah said the wider adoption of such materials could also generate economic benefits beyond housing.

He said local production could create employment opportunities for young people and artisans, support local manufacturing, expand mining and processing value chains, stimulate economic activity and reduce pressure on foreign exchange.

He therefore called on architects to take the lead in promoting indigenous construction solutions.

According to him, professionals should engage government on policies that support local materials, work with academic institutions on research, encourage private-sector investment and involve communities in accepting and adopting locally developed construction technologies.

Attah also assured that the Kogi State Chapter would continue to promote sustainable, affordable and locally driven housing solutions.

He urged architects to design, specify and supervise the appropriate use of indigenous materials in construction projects.

Housing costs remain a major concern

The discussions at the event come amid wider concerns over the rising cost of housing construction in Nigeria.

Stakeholders in the housing sector have repeatedly linked high construction costs to expensive building materials, limited access to affordable finance and other development constraints.

Earlier housing-sector discussions have similarly called for greater adoption of locally produced materials, arguing that increased local production could reduce construction costs, conserve foreign exchange and create jobs.

The use of indigenous materials has also been identified as an important part of efforts to reduce dependence on imported construction inputs.

The Nigeria Building and Road Research Institute has previously developed materials and technologies including pozzolana, interlocking block-making machines and fibre-reinforced roofing materials, although commercialisation and mass production have remained challenges.

The NIA’s Kogi Chapter is therefore calling for stronger links between research, policy, investment and actual construction so that locally developed technologies can move beyond research and pilot stages into wider housing delivery.

Five professionals examine housing solutions

The World Architecture Day programme featured presentations and discussions involving five professionals who examined the housing theme from different perspectives.

They included Arc. Dr. Mohammad Adamu, MNIA; Arc. Isah Obenege Suleiman, MNIA; Arc. Dr. Jibrin Olanusi, MNIA; Bdr. Adoke Ismaila Ibrahim, MNIOB; and Bdr. Aisha Oruma-Sylvanus, MNIOB.

Oloninisi encouraged participants to engage with the presentations and discussions and use the platform to develop collaborations that could contribute to improvements in the built environment.

The discussions ultimately centred on the need to turn the recognition of housing as a basic human need into practical delivery strategies.

For the NIA Kogi State Chapter, that includes promoting indigenous construction technologies, strengthening local production and encouraging policies and investment that can make decent housing more affordable to Nigerians.

The post NIA Calls for Wider Use of Local Materials to Cut Housing Costs appeared first on Housing TV Africa.

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.

Developers and property experts call for cheaper land, stronger housing supply, affordable mortgages and improved regulation.

Nigeria’s housing affordability crisis is deepening as rising property prices, escalating rents and increasing construction costs place homeownership beyond the reach of millions of households.

Real estate developers, estate surveyors and investment professionals attributed the challenge to expensive land, costly building materials, infrastructure gaps, high financing costs, statutory charges and weak household purchasing power.

The stakeholders made the observations while highlighting the need for reforms across Nigeria’s housing value chain.

Rising Construction Costs Drive Property Prices

President of the Real Estate Developers Association of Nigeria (REDAN), Oba Akintoye Adeoye, said rising residential property prices and rents had become a major concern for developers, tenants, prospective homeowners and investors.

Adeoye explained that housing costs were increasing faster than the purchasing power of many Nigerians.

He said policymakers must examine land acquisition, construction, infrastructure, finance, transportation, professional services and regulatory charges instead of focusing only on the final price of properties.

“When the cost of producing a house increases, it inevitably impacts the price of the finished property,” REDAN said.

However, the association cautioned developers against using rising production costs to justify arbitrary pricing or consumer exploitation.

It called for measures to reduce the cost of land, infrastructure, building materials and housing finance, arguing that lower production costs would enable developers to offer more affordable homes.

Experts Demand Affordable Mortgage Financing

Adeoye urged greater access to long-term mortgage financing, allowing Nigerians to spread homeownership payments over 15, 20 or 30 years.

REDAN also advocated rent-to-own arrangements, cooperative housing schemes and housing savings programmes.

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) reported in June 2026 that it had delivered ₦128 billion in mortgages to 1,859 families across 25 states.

The mortgages reportedly carried a fixed interest rate of 9.75 per cent, with repayment periods of up to 20 years and a minimum 10 per cent equity contribution.

By August, the State House said MREIF’s disbursements had increased to ₦140 billion, supporting 2,018 mortgages across 27 states. 

Despite these interventions, experts maintained that affordable mortgages alone would not resolve the crisis if housing production remained expensive.

Land Scarcity and Urban Migration

Chief M.I. Okoro, a Fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), identified population growth, urban migration and limited land supply as key drivers of rising property prices.

He pointed to Lagos areas such as Ikoyi, Victoria Island and Lekki Phase One, where developers increasingly construct vertically because of land scarcity and high acquisition costs.

Okoro said rising property values in prime locations were pushing residents towards less expensive communities on the Mainland and outskirts of Lagos.

He called for increased housing supply, social housing programmes and greater involvement by local governments.

“Social housing is not meant to be for profit motive. That is where government comes in,” he said.

Construction Inflation Worsens Affordability

Ayo Ibaru, Chief Investment Officer at housing development company Panterra, described the crisis as the result of interconnected pressures across the housing sector.

He identified rising costs of cement, steel, finishing materials, labour, diesel and imported equipment as major contributors.

According to Ibaru, exchange-rate volatility has also increased the cost of imported materials and technical expertise.

Developers consequently reassess project budgets and may transfer some additional costs to buyers and tenants through higher sale prices, rents and service charges.

However, he noted that developers’ ability to increase prices remains limited by household incomes and effective market demand.

He argued that housing must be affordable to build, finance and maintain.

Land Documentation and Market Transparency

Ibaru also identified inefficient land administration and limited market transparency as factors increasing housing costs.

He called for faster land registration, clearer disclosure requirements for off-plan developments, stronger developer accreditation and appropriate escrow arrangements.

He also advocated better mechanisms for addressing abandoned or poorly constructed projects.

REDAN urged consumers to verify developers and property titles and conduct due diligence before making substantial payments.

Experts Call for Balanced Housing Development

Okoro argued that improving infrastructure and economic opportunities outside major urban centres could reduce migration pressure on cities such as Lagos.

He identified electricity, water, roads and telecommunications as essential investments for smaller cities and rural communities.

The stakeholders agreed that Nigeria’s housing crisis involves multiple factors, including:

• Expensive land and construction materials.
• High financing costs.
• Inadequate infrastructure.
• Weak household purchasing power.
• Limited housing supply.
• Inefficient land administration.
• Gaps in regulation and consumer protection.

The experts said addressing these interconnected challenges would require coordinated action from government, developers, financial institutions, local authorities and other stakeholders.

The post Nigeria’s Housing Crisis Deepens as Rising Costs Push Homeownership Beyond Reach appeared first on Housing TV Africa.

Rising construction costs are making homeownership harder for Nigerians, while the FCCPC investigates possible anti-competitive practices in the cement market.

For millions of Nigerians hoping to build homes, the rising cost of cement is making homeownership increasingly difficult.

The price of 100 bags of cement reportedly increased from approximately ₦380,000 in May 2023 to about ₦1.25 million by August 2026, representing a rise of roughly 229 per cent.

In some parts of Nigeria, a 50-kilogramme bag of cement now sells for between ₦13,000 and ₦15,000, compared with approximately ₦3,300 to ₦3,500 in 2021.

The increase has raised construction expenses for homeowners, developers and landlords, adding pressure to a housing market already facing a significant supply deficit.

Rising Cement Prices Threaten Homeownership

Cement remains a critical material in Nigeria’s conventional construction industry. Its rising cost affects the prices of blocks, foundations, columns, plastering and other building activities.

Construction professionals say the price increases have also contributed to higher property values, rents and project costs.

Amusan Oluseyi, principal partner of Space Button Architecture Limited, questioned the persistent price increases given Nigeria’s limestone reserves and cement production capacity.

John Agbezin, Public Relations Secretary of the Nigerian Institute of Quantity Surveyors, identified energy costs, foreign exchange pressures, logistics, insecurity and multiple taxation as factors affecting cement prices.

Benjamin Onigbinde, Chief Executive Officer of Sigvent Property Trust Limited, also pointed to transportation costs and the role of intermediaries between manufacturers and construction sites.

Nigeria Has Excess Cement Production Capacity

The Federal Competition and Consumer Protection Commission (FCCPC) estimates that Nigeria has installed cement production capacity of between 60 million and 65 million metric tonnes annually.

Domestic consumption, however, is estimated at approximately 25 million to 30 million metric tonnes.

The commission also identified Nigeria as a net exporter of cement to neighbouring countries.

Despite the reported production surplus, cement prices have continued to rise, prompting the FCCPC to investigate possible price manipulation and other anti-competitive practices.

The regulator said its preliminary findings did not establish wrongdoing but provided sufficient grounds for the investigation to continue. 

FCCPC Investigates Cement Pricing

The FCCPC’s investigation followed public complaints about the high cost of cement in Nigeria.

The commission compared prices and market conditions in Nigeria with those in countries including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.

According to the regulator, a 50kg bag of cement in Nigeria sold for approximately ₦9,300–₦9,700 in January 2026. By mid-year, prices had risen to between ₦10,500 and ₦13,000, reaching ₦13,000–₦15,000 in some areas by July.

Manufacturers cited energy expenses, naira depreciation, imported machinery and spare parts, transportation and logistics as contributing factors.

The FCCPC said it was examining whether those explanations adequately accounted for prevailing prices or whether the market showed evidence of coordinated conduct, abuse of market power or anti-competitive distribution practices.

The commission has issued notices of investigation and summonses requiring key industry players to provide information about pricing, production, capacity utilisation, exports and commercial relationships. 

Cement Manufacturers Report Stronger Earnings

While consumers and builders face higher costs, major cement producers have reported substantial financial growth.

Dangote Cement recorded first-half 2026 revenue of ₦2.51 trillion, compared with ₦2.07 trillion in the corresponding period of the previous year. Its profit after tax reportedly increased to ₦638.53 billion.

BUA Cement also recorded higher revenue and profit during the period, while the combined profit after tax of Dangote Cement, BUA Cement and HBM Nigeria was reported at approximately ₦1.17 trillion.

The financial performance does not, by itself, establish that manufacturers engaged in unlawful pricing practices. However, the earnings have intensified public debate about competition, production costs and consumer protection.

The FCCPC’s investigation is expected to determine whether current prices reflect legitimate market conditions or potential violations of competition law.

Housing Crisis Adds Pressure

The impact of cement prices extends beyond individual construction projects.

Higher building costs can discourage developers, increase property prices and make affordable housing more difficult to deliver.

Aliyu Oroji Wamakko, a former president of the Real Estate Developers Association of Nigeria, argued that cement demand from major infrastructure projects could place additional pressure on supplies available to the housing sector.

Industry stakeholders have called for improved transportation infrastructure, reduced production costs, stronger competition and greater transparency across the cement distribution chain.

They also advocate increased support for alternative building technologies that could reduce dependence on conventional construction materials.

What Needs to Change?

Addressing cement affordability will require coordinated action involving government regulators, manufacturers, distributors and construction professionals.

Key areas for attention include:

• Greater transparency in factory-gate and retail pricing.
• Improved road infrastructure and transportation systems.
• Reliable and affordable energy supply.
• Stronger competition within the cement industry.
• Clearer oversight of distributor margins.
• Support for alternative construction technologies.
• Continued investigation of potential anti-competitive conduct.

Nigeria’s cement industry has significant production capacity and access to local raw materials. However, rising prices continue to create challenges for households seeking to build homes.

The outcome of the FCCPC investigation could provide important information about the factors driving cement prices and the measures required to make construction more affordable.

The post Cement Price Surge Deepens Nigeria’s Housing Crisis as Manufacturers Record Higher Profits 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.

The rising price of cement is putting more pressure on Nigeria’s housing market as construction costs increase and homeownership becomes harder for many Nigerians.

The price of a 50kg bag of Dangote Cement has reportedly climbed above N15,000 in some locations. The development comes while the Federal Competition and Consumer Protection Commission investigates pricing in the cement industry.

Construction professionals have called for urgent action to improve supply, increase competition and ensure greater transparency in cement pricing.

Experts Raise Concern Over Housing Costs

Amusan Oluseyi, Principal Partner at Space Button Architecture Limited, said the recent price increases were difficult to explain given Nigeria’s large limestone deposits and cement production capacity.

He said Nigeria has an estimated cement production capacity of between 60 million and 65 million metric tonnes each year. Domestic consumption, however, stands at about 25 million to 30 million metric tonnes.

Amusan urged the FCCPC to take steps that would protect Nigerians who want to build their own homes.

He also warned that cement price volatility was affecting more than construction budgets. According to him, higher cement costs are raising the cost and value of housing while putting additional pressure on rents.

The architect also called for greater use of alternative building materials. He said the government could support research and commercial production of construction methods that rely less on cement.

He cited laterite-based materials, including Latcrete blocks developed by Nigerian architect and artist Demas Nwoko, as one possible alternative.

Supply Shortage Drives Recent Spike

Soji Adeniji, Chairman of the Lagos Chamber of Commerce and Industry’s Engineering and Construction Group, offered a different view of the latest price increase.

Adeniji said the market was facing a temporary shortage rather than a new official price from cement manufacturers.

He linked the shortage to recent maintenance work at a Dangote Cement plant and access restrictions affecting some material depots.

According to him, these challenges reduced the quantity of cement available to distributors. The limited supply then allowed some players in the distribution chain to raise prices.

Adeniji expects prices to ease once more cement reaches the market.

He also said he had not received an official notice from Dangote Cement announcing a new price. He therefore argued that the current prices in some locations should not automatically be treated as an official manufacturer price increase.

Energy and Logistics Add to Costs

John Agbezin, Public Relations Secretary of the Nigerian Institute of Quantity Surveyors, identified several factors that affect cement prices.

These include energy costs, foreign exchange movements, transportation, insecurity and multiple taxes.

Agbezin said manufacturers rely on diesel and gas to operate their plants. Rising energy costs therefore increase production expenses.

Foreign exchange pressures also affect the sector. Some imported inputs, including diesel additives and coal, are priced in foreign currency and add to manufacturers’ costs.

Transportation creates another challenge. Poor roads and insecurity can force truck drivers to take longer routes to avoid unsafe areas.

Agbezin said longer journeys can add significant costs to the final price of a bag of cement.

Infrastructure Projects Increase Demand

Agbezin also pointed to strong demand from major infrastructure projects.

He said large projects can absorb substantial quantities of cement. Suppliers may therefore struggle to meet demand from smaller construction projects and individual developers when supplies become tight.

The situation could create additional pressure for Nigerians building homes, especially those working with limited budgets.

For developers, sudden changes in cement prices can also make project planning more difficult. Higher material costs may affect construction timelines, development budgets and the final price of properties.

Calls for More Competition

Agbezin urged the FCCPC to complete its investigation into the cement industry and publish its findings.

He also called for action against cartels if the investigation establishes evidence of anti-competitive practices.

Greater transparency across the supply chain is another priority. Agbezin said manufacturers and distributors should provide clearer information about factory, wholesale and retail prices.

He also called for more competition in the cement industry. In addition to Dangote Cement, BUA and Lafarge, he said Nigeria should encourage more investment and production capacity.

More competition could give buyers greater choice and reduce the risk of supply disruptions affecting prices.

Impact on Nigeria’s Housing Crisis

The cement market matters directly to Nigeria’s housing sector because cement remains an important construction material.

When cement prices rise sharply, developers and individuals face higher building costs. Developers may pass some of these costs to buyers through higher property prices.

Higher construction costs can also affect rental housing. When it becomes more expensive to develop new properties, landlords and developers may seek higher returns to recover their investment.

The latest price surge has therefore added another challenge to Nigeria’s housing affordability problem.

While some industry operators believe the current increase may result from temporary supply shortages, sustained price volatility could make it harder for households to plan and finance home construction.

Greater supply, stronger competition, transparent pricing and lower production and logistics costs could help bring more stability to the market.

For Nigeria’s housing sector, a more predictable cement market would provide greater certainty for developers, contractors and prospective homeowners.

The post Cement Price Surge Worsens Nigeria’s Housing Affordability Crisis appeared first on Housing TV Africa.

By Adebayo Tobi

Nigeria’s housing conversation has focused heavily on one question: How many homes does the country need to build?

With the country facing a housing deficit estimated at more than 28 million units, increasing housing supply is clearly important. But there is another question that deserves just as much attention: How many Nigerians can actually afford the homes being delivered?

That question could define the next phase of Nigeria’s housing and real estate market.

Across Lagos, Abuja, Port Harcourt, Ibadan and other growing urban centres, residential development continues to expand. New estates, apartments and gated communities are appearing in areas where demand for housing remains strong.

Yet a growing number of Nigerians are finding themselves priced out of homeownership.

READ ALSO : Why Government JVs Struggle to Deliver Affordable Housing in Nigeria

The house may exist, but can people afford it?

Housing affordability is not simply about the price attached to a property.

For a prospective homeowner, affordability also depends on income, mortgage rates, deposit requirements, land costs, construction expenses, transportation, infrastructure charges and the general cost of living.

This means that a property can be technically available without being financially accessible.

A young professional may have a stable income and still struggle to raise the required deposit. A family may be able to afford monthly payments but not the initial equity contribution. Another household may find a property within its budget but reject it because its location creates unaffordable transportation costs.

These realities show why Nigeria’s housing challenge cannot be solved by construction alone.

The affordability gap is widening

The cost of delivering housing has become a major concern for developers and buyers.

Land, building materials, labour, infrastructure and financing all influence the final price of a property. When these costs rise, developers face pressure to increase selling prices or reduce the scale and specifications of projects.

Buyers, meanwhile, are dealing with household incomes that may not increase at the same pace as property prices.

This creates what can be described as an affordability gap  the distance between the cost of available housing and what households can realistically pay.

Closing that gap should become a central part of Nigeria’s housing conversation.

Developers must understand the real market

The private sector has an important role to play.

Developers naturally respond to market opportunities, and there will always be demand for premium residential developments. But Nigeria also needs housing products designed around the purchasing power of the broader population.

The question should not only be, “What can we build?”

It should also be:

“Who is the intended buyer, and can that buyer realistically afford it?”

This requires developers to pay closer attention to housing design, location, construction methods, infrastructure costs and payment structures.

Smaller but well-planned homes, efficient designs and phased developments could provide alternative ways of reducing the entry cost for some buyers.

Financing remains a critical piece

Even where property prices are relatively manageable, access to long-term housing finance remains important.

For many households, homeownership cannot be achieved through savings alone. A functioning mortgage market, longer repayment periods and suitable financing products can help spread the cost of purchasing a home over a period that is more consistent with household income.

Developers and financial institutions also have room to explore innovative payment models that can make property acquisition more accessible.

The objective should be simple: make the journey to homeownership financially realistic.

Government also has a role

The affordability challenge cannot be left entirely to developers.

Government policies on land, taxation, infrastructure, planning, building regulation and housing finance can significantly influence the cost of delivering homes.

Efficient land administration can reduce delays and uncertainty. Better infrastructure planning can reduce the burden developers pass on to buyers. Clear and predictable regulations can also improve the environment for housing investment.

At the same time, housing policy must recognise that affordable housing is not simply about constructing cheaper buildings. It is about creating communities where people can live safely and sustainably without housing consuming an unreasonable share of their income.

The opportunity in Nigeria’s housing market

Nigeria’s housing challenge is enormous, but so is the opportunity.

Millions of people need decent homes, while developers, investors, financial institutions and construction professionals are searching for sustainable opportunities.

The market can bring these interests together if affordability becomes a stronger part of the development equation.

Nigeria does not only need more houses.

It needs more homes that ordinary working Nigerians can realistically aspire to own.

The future of the housing industry should therefore be measured not only by the number of units delivered, but also by whether those units create genuine pathways to homeownership.

The biggest opportunity may be found in the space between what Nigerians need, what they earn, and what the market currently offers.

Bridging that gap will require collaboration, innovation and a willingness to rethink conventional approaches to housing delivery.

The post Nigeria’s Housing Market Needs Homes People Can Actually Afford appeared first on Housing TV Africa.

Sudan recorded the highest inflation rate among the African countries reviewed in July 2026, with annual consumer price growth reaching 41.61%, while Nigeria ranked third at 15.43%, according to the latest available consumer price index data.

The figures, drawn from national statistical agencies and central banks, cover the most recent readings available between June and July 2026. South Sudan was excluded because its latest reported inflation figure dates back to May 2025.

Sudan’s 41.61% inflation rate was significantly above the rest of the countries in the ranking. However, the figure represented a sharp decline from 51.28% in June, a reduction of 9.67 percentage points.

Despite the annual slowdown, consumer prices in Sudan continued to rise during July. The country’s general Consumer Price Index increased 1.47% month-on-month, while urban inflation stood at 45.24% and rural inflation at 39.85%.

Malawi ranked second, with inflation easing to 20.80% in July from 21.10% in June. The decline was mainly linked to lower food-price pressures, with food inflation falling to 14.3% from 14.7%.

Non-food inflation in Malawi, however, moved higher to 32.2%, largely because of increases in charcoal and firewood prices. The figures highlight the continued influence of food and energy costs on household purchasing power across African economies.

Nigeria came third at 15.43%, down from 15.91% in June. While the headline rate continued to moderate, food inflation moved in the opposite direction, rising to 20.31% year-on-year.

The National Bureau of Statistics reported a sharp increase in Nigeria’s monthly food inflation rate, which rose to 5.56% from 3.75% in June. Higher average prices for rice, water yam, plantain, fresh pepper, onions, tomatoes, garri, beef and eggs contributed to the increase.

Ethiopia ranked fourth, recording 15.30% inflation in July, compared with 13.90% in June. Food inflation rose to 15.7%, while non-food inflation increased to 14.8%. Monthly consumer prices also rose 2.6%, the strongest monthly increase since March 2025.

Sierra Leone followed at 14.77% in June, up from 12.69% in May. The increase was driven largely by non-food inflation, which reached 21.03%. Housing, water, electricity, gas and other fuels recorded an annual increase of 81.33%, while transport prices rose 40.23%.

Rwanda recorded 14.50% inflation in July, up from 13.60% a month earlier. Transport prices increased 24.2% year-on-year, while housing, water, electricity, gas and other fuels rose 21.0%.

Egypt ranked seventh with 13.00% inflation in July, compared with 12.20% in June. Housing, water, electricity, gas and fuel recorded a 31.1% annual increase, while transport and education costs rose 21.1% and 20%, respectively.

Libya recorded 12.70% inflation in June, down from 14.00% in May. Food inflation also eased substantially, falling to 13.90% from 17.60%.

São Tomé and Príncipe posted 9.70% inflation in June, up from 9.20%, while Botswana completed the ranking at 9.40%. Botswana’s decline was linked partly to lower domestic fuel prices introduced on July 7.

The inflation trends have implications beyond household consumption. Higher prices for building materials, transport, energy and other inputs can increase construction costs, put pressure on property development budgets and affect the affordability of housing and infrastructure projects.

For Nigeria, the combination of easing headline inflation and rising food inflation remains particularly important for the housing sector. Developers, contractors, homebuyers and mortgage borrowers continue to operate in an environment where the cost of essential goods and services can influence construction budgets, household disposable income and the ability to finance housing.

Across the 10 countries, five recorded higher inflation while five saw their rates decline. The contrasting movements underline the different pressures facing African economies, with food, energy, transport and broader consumer costs remaining important drivers of inflation.

The post Top 10 African Countries With Highest Inflation Rates in July 2026 appeared first on Housing TV Africa.