Stakeholders in Nigeria's housing and construction sector have expressed deep concern over the soaring price of cement, which now sells for approximately N12,000 per bag. Builders and homeowners alike have voiced outrage, warning that the rising cost of cement and fuel is making housing projects increasingly expensive and forcing some developers to halt construction work.
Impact on Affordable Housing
Industry experts have warned that affordable housing in Nigeria will remain elusive if cement prices continue to climb, despite local production. The sharp increase in cement prices has exacerbated the housing crisis, with many developers abandoning projects due to skyrocketing construction costs. Private individuals hoping to build their own homes are also being discouraged.
Market Survey Findings
A market survey conducted at major building materials markets in the Federal Capital Territory (FCT) revealed that a 50kg bag of Dangote Cement now sells between N11,800 and N12,000, depending on the product type. Other leading cement producers in Nigeria include BUA, Ibeto Cement, and Lafarge.
Real estate expert Jide Fasuyi questioned why cement remains expensive despite the presence of local manufacturers and the availability of raw materials within the country. He noted that it is troubling that Nigerians still pay heavily for cement even though the product is produced locally and exported to other countries.
Developers Fear Affordable Housing May Slip Away
Civil engineer Chukwuebuka Vincent criticized the steady rise in prices, noting that cement costs have more than doubled within the last three years. According to him, cement sold for between N5,500 and N6,000 in 2023, but now costs nearly N12,000 per bag. He explained that the sudden increase has affected several construction projects, including one he is currently supervising, which has been suspended because of the high cost of materials.
Vincent warned that affordable housing may become impossible if cement prices remain high, as developers would inevitably transfer the additional costs to home buyers.
Fuel Prices Worsen the Situation
The Executive Director of the Housing Development Advocacy Network (HDAN), Barrister Festus Adebayo, said rising fuel prices are also worsening the housing situation in Nigeria. He explained that the cost of transporting building materials such as cement, iron rods, tiles, and fittings has increased significantly due to higher petrol prices. According to him, contractors and developers are struggling with rising logistics expenses, forcing suppliers to pass the added costs on to consumers.
These concerns come shortly after the Federal Government added cement and several other products to the list of prohibited imports. The updated policy also covers items such as soap, fertiliser, and 14 other product categories, increasing the total number of restricted goods to 17.
