Cement Price Surge Shocks Nigeria Construction Sector

Cement price increases by 30%, steel 20%, sharp sand 25% Developers call for stakeholders’ engagement

The escalating increase in the prices of cement has sent shockwaves to operators in the housing and construction sector, leading to delays and abandonment of projects across the country.

As previously reported by NaijaChoice News, major cement manufacturers — Dangote Cement, BUA Cement and Lafarge Africa — posted a combined profit after tax of N1.64 trillion in the 2025 financial year, even as retail prices continue to climb sharply.

Depending on the location and brand, a 50-kilogramme bag of cement, which cost N7,500 in the last quarter of 2025, now sells for between N11,500 and N15,000 in the market. Market checks confirm the surge: in Lagos it has hit N11,500, Abuja up to N11,200 for BUA brand, Ilorin N10,500–N10,700, and Kano N10,500–N11,000, with similar trends in Kaduna, Jigawa and other states.

Real estate developers have decried the situation and called on the Federal Government to intervene and prevail on manufacturers over the excessive increase in the prices of cement and other critical building materials.

They pointed out that cement prices rose by over 30 per cent in the past quarter, while steel prices shot up 20 per cent, and sharp sand prices jumped by 25 per cent. Wood and granite prices have also increased, though at a slower pace.

The hikes, they noted, are driven by global market trends, logistics challenges, rising local demand, supply chain costs, middlemen margins and production expenses. Developers say they are facing serious financial pressures, with many projects already delayed, scaled down or abandoned.

In a joint statement described as “a troubling increase in the prices of essential building materials,” the President of the Real Estate Developers Association of Nigeria (REDAN), HRM Oba Akintoye Adeoye, and Professor Timothy Nubi, Director of the Centre for Housing and Sustainable Development, University of Lagos, called on the Federal Ministry of Housing and Urban Development and other relevant government institutions to urgently engage stakeholders in the building materials value chain.

“We also appeal to cement manufacturers and other industry players to work collaboratively with government and stakeholders in order to ensure that the housing sector remains stable and capable of delivering affordable homes to Nigerians,” the duo said.

Oba Adeoye warned that escalating cement prices are threatening affordable housing delivery at a time Nigeria is already confronted with a significant housing deficit estimated at over 15 million units.

He noted that the price of a 50kg bag of cement rose from about N7,500 in the last quarter of 2025 to between N9,000 and N10,000 at the beginning of 2026, and has now climbed to between N11,500 and N15,000 in several parts of the country.

“Cement remains one of the most critical inputs in construction, accounting for a significant proportion of the overall cost of building houses. When the price of cement rises, the entire cost structure of housing development is affected,” he said.

The REDAN president added that the cost of other construction inputs such as iron rods and sand has also increased considerably, placing enormous pressure on developers and investors.

“The combined effect of these rising costs is that developers are now facing serious financial pressures, which are already leading to delays in project delivery, scaling down of housing developments, and in some cases the suspension or abandonment of projects.

“This situation is particularly worrisome when we consider the fact that Nigeria is already confronted with a significant housing deficit. Any development that further increases the cost of building houses will ultimately make homeownership even more difficult for millions of Nigerians,” he stated.

Professor Nubi described the building and construction sector as a vital component of Nigeria’s economy that contributes significantly to GDP growth and employment, having surpassed the oil sector for the first time last year.

“The recent surge in cement prices has sent shockwaves through Nigeria’s construction sector. But cement isn’t the only material affected — steel, wood, granite, and sharp sand have also seen significant price increases, exacerbating the challenge,” he said.

He warned of persistent increases creating unintended consequences, including escalated project costs leading to delays or cancellations, deepened housing affordability crisis, squeezed contractor margins, and potential compromise on quality and safety as some may resort to substandard materials.

“The impact is evident in housing and rent prices across major cities,” Professor Nubi added.

Oba Adeoye reiterated REDAN’s commitment to supporting government initiatives aimed at addressing the housing deficit but stressed the need for a stable and predictable environment in the pricing of critical building materials.

“We believe that through constructive dialogue, policy support, and cooperation among stakeholders, practical solutions can be found to address this challenge and safeguard the future of housing development in Nigeria,” the REDAN president said.

Stakeholders are now watching closely to see how the Federal Government and cement manufacturers respond to the growing calls for urgent intervention to stabilise prices and protect the sector that drives jobs and economic growth.