Nigeria’s rising cement prices are putting fresh pressure on the housing market. Real estate developers warn that higher building costs could slow construction and make affordable homes harder to deliver.

The development comes as the Federal Competition and Consumer Protection Commission (FCCPC) investigates cement pricing in Nigeria. The commission is also examining price differences between Nigeria and selected African markets.

Cement prices climb

Market checks cited in the report showed that a 50kg bag of cement sold for N9,300 to N9,700 in January 2026. By July, the price had reached as much as N15,000 in some locations.

Current prices in parts of Nigeria range from about N11,000 to N13,000 per bag. Prices vary by location, supplier and distribution channel.

The increase has added to existing pressures on property developers. Many are already dealing with high borrowing costs, expensive energy, rising material prices and weak consumer purchasing power.

Higher cement costs can reduce developers’ profit margins. They can also force firms to revise project budgets, slow construction or transfer some of the extra cost to buyers and tenants.

Developers seek lower costs

Victor Ameh, managing director of Legendary Foreshore Construction, said cement prices between N13,500 and N15,000 were making construction more difficult.

Ameh noted that many developers depend on bank financing. High borrowing costs therefore make any increase in building material prices more difficult to absorb.

He called for more investment across the cement value chain. He also urged measures to reduce electricity and fuel costs, saying lower production costs would support the construction industry.

Chudi Ubosi, chairman of the Association of Capital Market and Valuers, also called for more investment and competition in cement production.

Ubosi pointed to Nigeria’s large limestone reserves as an opportunity for new investment. He said more producers could help increase competition in the cement market.

He also warned that high cement prices have effects beyond construction. According to him, the impact reaches manufacturing, real estate, commerce and hospitality.

FCCPC faces calls for wider review

The FCCPC investigation has also drawn calls for a broader review of cement pricing. Industry stakeholders say production costs alone do not explain the final price paid by consumers.

Mansur Ahmed, interim chairman and president of the Pan-African Manufacturers Association (PAMA), said the commission should consider the wider economic environment. He cited financing costs, infrastructure gaps and other economic factors.

Muda Yusuf, director-general of the Centre for the Promotion of Private Enterprise (CPPE), also called for a detailed review of cement production costs.

Yusuf said taxes, levies, transport, logistics, energy and financing costs should form part of any comparison between Nigeria and other countries. He also stressed the importance of considering both producers and consumers.

West African prices vary

Cement prices across West Africa show that regional differences are not uniform.

In Lomé, Togo, a 50kg bag sells for about CFA4,550. That was equivalent to roughly N10,844 or $8.03 using the August 18, 2026 exchange rates cited in the report.

The reported average price in Benin Republic was CFA4,500, or about N10,725. In Ivory Coast, CFA5,000 was equivalent to approximately N11,917.

In Ghana, a 50kg bag sold for about GH₵106, equivalent to roughly N12,962.

Prices within Togo also varied sharply by location. A 50kg bag cost about N10,844 in Lomé, compared with approximately N15,492 in Kara and N17,160 in Dapaong.

The differences point to the role of transport, distribution, taxes and other supply-chain costs in determining the final price of cement.

Housing affordability under pressure

For Nigeria’s housing sector, the main concern is the effect of higher cement costs on project delivery.

Developers now face difficult choices. They can absorb the extra cost, reduce the size of projects or raise property prices and rents.

The Real Estate Developers Association of Nigeria (REDAN) described cement affordability in March as a national housing emergency. The association also called for a review of pricing dynamics, including differences between domestic and export prices.

Higher construction costs matter because they affect the entire housing supply chain. When developers face larger project expenses, the cost of new homes can rise. This can make it harder for households to enter the property market or afford better rental housing.

What the FCCPC investigation could mean

The FCCPC investigation could have implications beyond the cement industry. Its findings may help clarify the role of production costs, competition, distribution and other market factors in determining cement prices.

For developers, however, the immediate issue is affordability. They need construction materials at prices that allow projects to remain viable while keeping homes within reach of buyers and tenants.

As the investigation continues, policymakers will face the challenge of supporting a sustainable cement industry while addressing the rising cost of housing. The outcome could influence how Nigeria approaches competition, construction costs and efforts to expand housing delivery.

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The Nigerian currency recorded a marginal decline at the official foreign exchange market on Tuesday, reflecting continued fluctuations within a broadly stable range.

Data released by the Central Bank of Nigeria (CBN) showed that the naira depreciated to N1,386.65 per dollar, representing a loss of N5.86 or 0.4 per cent compared to N1,380.79 recorded before the Easter break on April 2.

The latest movement also follows a slight dip recorded earlier in the month, when the currency traded at N1,378.70 per dollar on April 1, indicating a marginal 0.1 per cent depreciation.

Despite the recent weakening, analysts maintain a cautiously optimistic outlook for the naira, pointing to ongoing monetary and foreign exchange reforms by the apex bank aimed at improving market stability.

The Centre for the Promotion of Private Enterprise (CPPE) noted that relative stability of the currency in the first quarter of 2026 has helped boost business confidence, particularly among investors navigating Nigeria’s volatile economic environment.

According to the CPPE, the naira has largely traded within a band of N1,340 to N1,430 per dollar during the period, reflecting a more predictable exchange rate trend compared to previous volatility.

The think tank attributed this stability to improved foreign exchange liquidity, supported by stronger oil earnings and a steady rise in external reserves, which have surpassed the $50 billion mark.

Economic analysts say while short-term fluctuations are expected in a liberalised foreign exchange market, the broader outlook will depend on sustained inflows, effective policy coordination, and global oil price dynamics.

The development highlights the delicate balance facing monetary authorities as they seek to stabilise the currency while supporting economic growth in an environment shaped by both domestic reforms and external pressures.

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Nigeria’s Net Domestic Credit (NDC) fell by 12.8 percent year-on-year to N98.97 trillion in August 2025, according to the Central Bank of Nigeria’s latest money and credit report. The decline, analysts say, mirrors the Central Bank’s monetary policy easing measures as inflation continues to moderate.

A breakdown shows that in August 2025, bank credit to government stood at N23.13 billion, while credit to the private sector amounted to N75.84 billion. This compares to August 2024 figures of N39.39 billion to government and N74.07 billion to the private sector, which brought total NDC to N113.46 trillion.

On a monthly trend, NDC was N102.41 billion in January 2025 and rose slightly by 0.9 percent to N103.37 billion in February, before falling sharply by 34 percent to N68.18 billion in March. It rebounded by 49.6 percent to N102 billion in April, dipped by 1.03 percent in May, and dropped further by 3.13 percent in June. Though July data was unavailable, August saw a mild 1.2 percent recovery.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), commended the Central Bank’s Monetary Policy Committee for cutting the Monetary Policy Rate (MPR), describing it as “a welcome and timely intervention.” He noted that a lower MPR, alongside reduced Cash Reserve Requirements, should expand banks’ lending capacity, ease borrowing costs, and stimulate business growth and job creation.

However, Yusuf cautioned that fiscal support remains crucial. “Monetary easing alone is not enough. Fiscal authorities must prioritize infrastructure, strengthen regulation, and sustain fiscal discipline to ensure macroeconomic stability and investor confidence,” he said.

David Adonri, Executive Vice Chairman at High Cap Securities Limited, warned that the ongoing contraction in credit could further strain businesses already battling inflation, forex volatility, and weak consumer demand. He noted that Nigeria’s policy move aligns with a wider African trend, with countries like Ghana and Kenya also cutting interest rates as inflation cools.

Despite these regional shifts, Nigeria’s MPR remains among the highest in Africa, reflecting persistent inflationary pressures and cautious monetary management.

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