New Cement Prices Emerge in Nigeria, Across West Africa as Developers Warn of Housing Crisis
- Cement prices have surged nationwide, straining Nigeria's affordable housing market and impacting developers
- Industry leaders call for increased investment and competition to combat rising cement costs and improve housing access
- FCCPC's investigation into cement pricing could reshape policies, influencing construction costs and housing availability
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Cement prices have climbed sharply across parts of Nigeria, raising fresh concerns among real estate developers who say the rising cost of the essential building material is making affordable housing increasingly difficult to deliver.
Market checks show that a 50kg bag of cement, which sold for between ₦9,300 and ₦9,700 in January 2026, had reached as much as ₦15,000 in some locations by July.
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The increase has added to pressures already facing developers, including high borrowing costs, expensive energy, rising prices of other building materials and weak consumer purchasing power.
Victor Ameh, managing director of Legendary Foreshore Construction, said cement prices of between ₦13,500 and ₦15,000 were putting additional strain on construction businesses.
He noted that many developers rely on bank financing, making higher material costs particularly difficult to absorb amid elevated interest rates.
Ameh called for greater investment across the cement value chain and measures to reduce electricity and fuel costs, arguing that lower production expenses would help support the construction sector.
Developers seek more competition
Chudi Ubosi, chairman of the Association of Capital Market and Valuers, also backed increased investment and greater participation in cement production as possible ways of moderating prices.
According to him, Nigeria's substantial limestone deposits provide an opportunity to attract more investors and strengthen competition within the industry.
Ubosi warned that expensive cement was creating wider economic consequences, affecting manufacturing, real estate, commerce and hospitality.
“Nigerians can no longer afford decent homes due to the rent crisis,” he said.
The concerns come as the Federal Competition and Consumer Protection Commission (FCCPC) investigates cement pricing and price differences between Nigeria and other African markets.
Industry stakeholders, however, have urged caution in interpreting the comparison.
Stakeholders question simple price comparisons
Mansur Ahmed, interim chairman and president of the Pan-African Manufacturers Association, said cement prices should be assessed within the broader economic environment.
He identified factors such as the cost of funds, infrastructure challenges and other economic variables as important considerations in determining industry competitiveness.
The director-general of the Centre for the Promotion of Private Enterprise, Muda Yusuf, similarly called for a detailed assessment of cement producers' cost structures.
He said taxes, levies, logistics, transportation, energy expenses and financing costs should be considered when comparing Nigerian cement prices with those in other countries.
Major producers, including Dangote Cement Plc, BUA Cement Plc and BHM Nigeria Plc, formerly Lafarge Africa, declined to comment on the FCCPC's preliminary findings, according to a report by Leadership.
How Nigeria compares with West Africa
Regional prices also present a more complicated picture.
In Lomé, Togo, a 50kg bag sells for about CFA4,550, equivalent to roughly ₦10,844 or $8.03 at August 18, 2026 exchange rates. In Benin Republic, CFA4,500 translates to about ₦10,725 or $7.94, while CFA5,000 in Côte d'Ivoire is approximately ₦11,917 or $8.82.
In Ghana, a 50kg bag priced at about GH₵106 is equivalent to roughly ₦12,962 or $9.60.
Even within Togo, prices vary considerably. A 50kg bag costs about ₦10,844 in Lomé, compared with approximately ₦15,492 in Kara and ₦17,160 in Dapaong.
Nigeria's prevailing retail range of about ₦11,000 to ₦13,000 therefore puts its prices broadly in line with some neighbouring markets, although significant regional variations exist.
The figures suggest that transportation costs, distribution margins, taxes, infrastructure and other supply chain expenses may influence prices alongside production costs.
Housing crisis remains the bigger concern
For developers, however, the immediate issue goes beyond the reasons behind cement price differences.
Higher construction costs leave developers with difficult choices: absorb the additional expense and accept lower margins, scale back projects or pass the burden to buyers and tenants through higher property prices and rents.
The Real Estate Developers Association of Nigeria described cement affordability in March as a national housing emergency and called for greater scrutiny of pricing dynamics.
Source: Getty Images
As the FCCPC investigation continues, stakeholders say its findings could have implications beyond the cement industry. A clearer understanding of production and distribution costs could help shape policies aimed at improving competition, reducing construction expenses and accelerating housing delivery.
For millions of Nigerians already struggling with rising rents and home prices, the outcome could determine whether decent housing becomes more accessible or slips further out of reach.
FCCPC unveils Nigerian cement price
Legit.ng earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) has opened a major investigation into Nigeria’s cement industry, questioning why prices remain significantly higher than in several other African countries despite the country’s huge limestone reserves and substantial production capacity.
The commission has summoned major cement manufacturers, including leading industry players, as it examines whether the current price of cement is being driven by genuine production costs or possible anti-competitive practices.
The investigation follows widespread complaints from consumers, builders and businesses over the sharp increase in the cost of cement, a product that directly affects housing, infrastructure, and construction costs across Nigeria.
Source: Legit.ng
