The continued rise in cement prices across Nigeria is beginning to slow down housing development and is also contributing to increasing rental costs, the Real Estate Developers Association of Nigeria (REDAN) has warned.
Speaking during a recent industry briefing in Lagos organised in collaboration with the Centre for Housing and Sustainable Development (CHSD), developers noted that the sharp increase in cement prices has emerged as a serious challenge for housing delivery and infrastructure projects across the country.
Stakeholders in the building sector explained that the persistent rise in the cost of construction materials, especially cement, is putting pressure on ongoing building projects and forcing many developers to review their construction plans and schedules.
As gathered by NATIONAL ECONOMY, REDAN’s warning is coming as cement prices climb beyond ₦11,000. REDAN president, Oba Akintoye Adeoye, revealed that the price of a 50kg bag of cement has jumped by more than 30 per cent within the last six months.
Industry figures indicate that the product sold for about ₦7,500 during the final quarter of 2025 before increasing to between ₦9,000 and ₦10,000 early in 2026, and even up to ₦15,000 in different parts of the country depending on location and availability.
Developers say the sharp rise has significantly affected the cost structure of housing projects. As one of the most essential materials used in construction, fluctuations in cement prices quickly translate into higher building expenses.
Given the situation in the housing sector of the economy, construction projects face delays. Real estate developers say the increase in cement prices is already affecting project timelines across several parts of the country.
For developers operating with limited financing or predetermined project budgets, sudden increases in construction costs make it difficult to keep projects on track. As a result, some projects are being delayed, while others have been temporarily put on hold.
REDAN noted that the volatility in cement prices is causing concern among private developers, who are responsible for delivering a substantial portion of Nigeria’s housing stock.
Industry analysts explained that when construction costs increase unexpectedly, developers are often left with two options: absorb the extra cost at the expense of profit margins or transfer the additional expenses to buyers and tenants.
Against the volatile market situation in the sector, higher building costs no doubt reflect in rent. Housing experts say the ripple effects of rising construction costs are already being felt in the rental market.
A professor and founding director of the Centre for Housing and Sustainable Development, Timothy Nubi, pointed out that higher construction input prices are contributing to rising rents in several major cities.
He cited Abuja as an example, where the annual rent for a self-contained apartment now ranges between ₦800,000 and ₦1.5 million, compared to about ₦400,000 previously.
According to experts, the trend reflects a wider economic pattern where increases in construction costs eventually translate into higher housing prices and rental rates.
The surge in cement prices comes at a time when Nigeria is already grappling with a significant housing deficit. This is as private developers play a major role in providing residential housing, especially in fast-growing urban centres such as Lagos, Abuja, and Port Harcourt. However, continuous increases in building material costs may slow down the pace of new housing development.
Industry observers warn that when developers postpone or scale down projects, the reduction in housing supply could worsen affordability challenges for many Nigerians.
Given the obnoxious situation in the rental market, stakeholders in the sector are calling on the government to take steps to stabilize the prices of building materials and support the construction industry.
Among the policy measures being proposed are incentives to encourage local production of building materials, improvements in supply chain systems, and fiscal policies aimed at reducing the cost of construction inputs.
Developers insist that addressing the rising cost of cement and other materials is crucial to boosting housing supply and making homes more affordable.
Looking at the prevailing rental market situation, a real estate consultant Mr. Tony Ukadike said “Nigeria’s real estate industry remains an important contributor to economic growth, generating jobs and supporting infrastructure development and urban expansion”.
However, he explained that persistent increases in construction material prices are becoming a major concern for developers and investors
