Cement prices have surged past N13,000 per bag in parts of Nigeria, intensifying pressure on construction costs, house rents, and the country's housing deficit. Housing expert Aliyu Wammakko, former president of the Real Estate Developers Association of Nigeria (REDAN), has called for urgent government intervention, including tax reductions, production incentives, subsidies, and expanded mortgage financing.
Soaring Cement Prices Squeeze Nigerians
Wammakko said the rising cost of cement, iron rods, and other essential materials is making it increasingly difficult for ordinary Nigerians to build or purchase homes. According to him, a bag of cement that sold for about N7,500 in March 2025 now costs approximately N13,000, representing an increase of more than 70%.
This development has also placed pressure on landlords, property developers, and tenants as construction and maintenance expenses continue to rise. Wammakko argued that the surge in house rents is closely connected to the cost of materials used to build and renovate residential properties.
“The higher cost of rent now in Nigeria doesn’t come by accident. It has its genesis in the cost of building materials,” he said during an interview with a Nigerian media house.
Expert Seeks Tax Cuts and Cement Subsidies
To ease the burden, the former REDAN president urged the Federal Government to review the numerous taxes and levies imposed on cement manufacturers. He said reducing production-related taxes and providing targeted incentives could lower manufacturers' operating costs and enable them to sell cement at more affordable prices.
Wammakko also proposed a subsidy for cement production, explaining that cheaper building materials would reduce construction costs and ultimately moderate house prices and rents. However, any government support would require proper monitoring to ensure that savings given to producers are reflected in retail prices and benefit consumers.
Renewed Call for Real Estate Regulation
The housing expert also called on the government to sign the Real Estate Regulation and Development Bill, commonly known as the RECON Bill, which was passed by the ninth National Assembly. He said stronger legislation could improve regulation within the housing sector and support policies aimed at tackling Nigeria's housing deficit.
N1 Trillion Proposed for Mortgage Financing
Beyond lowering material costs, Wammakko urged the government to inject at least N1 trillion into the Federal Mortgage Bank of Nigeria. He explained that increased funding would enable more Nigerians to access affordable mortgages and construction loans.
According to him, combining cheaper building materials with accessible long-term finance could stimulate housing development, expand homeownership, and offer relief to tenants facing repeated rent increases.
Legit.ng earlier reported that Nigerians are demanding that cement manufacturers explain how a 50kg bag now retails at between N12,000 and N15,000 in many parts of the country, a sharp jump from roughly N7,500 less than a year ago, despite Nigeria holding an installed production capacity of more than 60 million metric tonnes annually and large limestone reserves. Architect and affordable housing advocate Ezekiel Nya-Etok, executive director of Estate Services at the Federal Housing Authority, said Nigerians had a right to know why prices had risen so sharply at a time when millions of citizens cannot afford decent housing.
