Cement Prices Spike Amid Rising Property Costs
Nigerians face rising construction costs as cement prices have jumped to N10,500 per 50-kilogram bag in January 2026, up from about N9,800 in December 2025, representing a 7.1 percent increase. The new prices apply in Abuja, Nasarawa, Niger, and other regions.
The increase comes despite Nigeria’s domestic cement production capacity in Obajana, Kogi State, Okpella, Edo, and other areas, and amid prior industry promises to cap prices at N7,000 per bag.
REDAN Raises Concerns Over Market Impact
Alhaji Aliyu Oroji Wamakko, former president of the Real Estate Developers Association of Nigeria (REDAN), warned the spike could disrupt property development, housing costs, and employment.
“Higher cement costs will inevitably push up rent for apartments and may force some businesses in the construction value chain to close, leading to job losses,” Wamakko said.
He noted that major cement producers, including Dangote and BUA, were invited by the presidency last year when prices reached N10,000 per bag and had pledged to reduce costs to around N7,000. However, reasons for the current increase remain unclear, and government response has been limited.
Factors Driving the Price Hike
Wamakko highlighted several possible contributors, including increased demand from road construction projects, currency fluctuations, and reliance on imported chemicals and equipment necessary for cement production.
He called for a comprehensive review of Nigeria’s cement production and pricing system to address the underlying causes of the surge.
Rising Housing Costs Compound Pressure
The cement price hike comes as minimum rents for self-contained homes in urban areas, including Abuja and Lagos, have reportedly doubled to N800,000 per annum from N400,000. Nigeria’s inflation rate, already high, reached 15.15 percent in December 2025, up from 14.45 percent.
