The price of a 50kg bag of cement in Nigeria has surged by as much as 367 per cent over the past seven years, worsening the country’s housing crisis and pushing construction costs to unprecedented levels...READ FULL; FROM THE SOURCE.
Findings show that cement, a key building material, which sold for between ₦2,500 and ₦3,000 before 2020, now goes for as high as ₦15,000 as of March 2026.
A recent report by PropComms Africa revealed that prices have climbed steadily over the years, with a sharp spike recorded in recent months.
Breakdown of cement price growth (2019–2026)
According to the report titled “Build Cost, Broken Market,” cement prices have followed a consistent upward trajectory:
Pre-2020: ₦2,500 – ₦3,000
2021: ₦3,300 – ₦3,500
2022: ₦5,500 – ₦8,000
February 2024: ₦10,000 – ₦14,000
Q4 2025: ₦10,000 – ₦10,500
January 2026: ₦10,000 – ₦10,500
March 2026: ₦11,500 – ₦15,000
The report noted that the latest increase represents a 30 per cent rise within the first quarter of 2026 alone.
“Prices that had settled at approximately ₦10,500 in Q4 2025 resumed their climb sharply. Manufacturers added ₦500 per bag in January 2026 alone when new tax measures took effect,” the report stated.
The firm warned that the continuous rise in cement and other building materials is severely affecting Nigeria’s housing sector.
“Projects are being abandoned, budgets renegotiated, and housing supply is contracting precisely when Nigeria’s reported 28-million-unit deficit demands the opposite,” the report said.
It added, “Urban rents have more than doubled. Homeownership has become economically inaccessible for most low and middle-income Nigerians.”
Beyond cement, the report highlighted increases in other construction inputs.
Steel prices have risen by about 20 per cent, sharp sand by 25 per cent, while iron rods have surged by over 120 per cent in some periods.
These rising costs, according to analysts, are compounding the challenges faced by developers and prospective homeowners.
PropComms Africa identified market concentration as a key driver of the rising cement prices.
The report noted that three major manufacturers, Dangote Cement, BUA Cement, and Lafarge Africa, control over 95 per cent of the domestic cement market.
While the manufacturers have attributed price increases to factors such as energy costs, foreign exchange volatility, logistics challenges, and taxes, the firm argued that these reasons do not fully justify the magnitude of the hikes.
“Market concentration and the systematic absence of competitive pressure in the sector” are largely responsible, the report stated.
The report further revealed that Nigeria’s cement production capacity stands at about 65 million metric tonnes annually, compared to the consumption of roughly 32 million tonnes.
Despite this apparent surplus, prices have continued to climb, raising concerns about pricing practices in the industry.
Call For Reforms, FCCPC Begins Probe
To address the situation, PropComms Africa called for structural reforms to boost competition.
It recommended opening up access to limestone deposits through transparent licensing to attract new entrants, as well as separating manufacturing from distribution networks to ensure fair market access.
The firm also urged the Federal Competition and Consumer Protection Commission to strengthen antitrust enforcement.
Meanwhile, the commission disclosed on March 12 that it had commenced an investigation into cement pricing across the country.
According to the FCCPC, the probe followed a formal report, with an investigative team already set up to examine pricing practices and market conduct in the sector.
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