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.

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

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

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

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

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

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

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The Federal Government has issued a firm directive to cement manufacturers nationwide to immediately lower the market cost of their products. This intervention comes amid rising concerns that current pricing structures are creating significant financial strains on active infrastructure initiatives across the country. According to authorities, the pricing surge has led to numerous construction firms demanding contract variations, a situation that the government insists must be addressed by adjusting production costs rather than public budgets.

Minister of Works, Senator David Umahi, announced that official talks between the government and major industry stakeholders are scheduled to commence on July 1, 2026. Speaking at an industrial gathering in Lagos, Umahi stated that building material suppliers must take proactive measures to manage their pricing structures instead of relying on the state to absorb rising material expenses. The minister emphasized that contractors are under immense pressure due to financial constraints, but noted that the administration will not be reviewing existing project allocations.

Beyond securing public infrastructure, the government highlighted that a reduction in market rates is essential to support affordable housing for everyday citizens. The ongoing expansion of transport networks, bridges, and highways under President Bola Tinubu’s administration offers extensive commercial prospects for suppliers who adapt to the country’s development needs. Consequently, industry players have been urged to scale up their manufacturing volumes to balance affordability with the accelerating demands of national growth.

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

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

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

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

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

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

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

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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.

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