Construction and housing stakeholders have urged the government’s intervention to address rising cement prices, warning that increasing building costs were worsening Nigeria’s housing affordability crisis.
The stakeholders spoke with the News Agency of Nigeria (NAN) on Sunday in Abuja.
The stakeholders, who raised concerns over rising cement prices in Nigeria, warned that escalating building costs were making home ownership increasingly difficult for many citizens.
They said that the rising cost of cement, iron rods, sand, and other construction materials had placed many developers under severe financial pressure.
According to them, the Federal Government should engage manufacturers and key players in the construction value chain to stabilise the prices.
Dr Chinedu Amadi, the President, Organisation of Youth in International Trade and Commerce (OY-(ITC), said the steady increase in cement and other building materials had slowed many construction projects across the country.
According to him, materials such as iron rods and roofing sheets have also experienced a significant price increase. The rising cost of cement reflects deeper economic challenges affecting production and supply chains.
Amadi noted that Nigeria’s growing population continues to increase demand for housing, adding that large infrastructure projects also contribute to rising demand for cement.
Amadi explained that cement production relied heavily on energy sources such as gas and diesel, adding that the increase in energy prices had raised operational costs for manufacturers.
He added that the depreciation of the naira had increased the cost of importing machinery, and other industrial inputs.
Amadi also identified transportation as a major factor influencing the price of cement and building materials, adding that the additional costs were eventually reflected in market prices.
He said that high diesel prices and poor road networks had increased logistics costs, adding that security concerns along transport routes also affect distribution expenses.
According to him, these challenges cause price variations in different parts of the country.
He emphasised that government intervention was necessary to stabilise the construction sector, suggesting that improved electricity supply and affordable gas for manufacturers would help reduce prices.
He also advised the Federal Government to open borders for cement importation to force a price reduction, while also boosting local production, curbing logistics bottlenecks, and promoting alternative locally produced building materials.
Mrs Flora Anne, the Founder of Africa Women in Housing and Construction Network, linked rising building costs to production and distribution challenges.
Anne said energy accounts for about 30 to 40 per cent of cement production costs in Nigeria, noting that an increase in gas, diesel and electricity tariffs had affected manufacturers.
According to her, transportation costs can represent up to 25 per cent of the final retail price of cement and foreign exchange pressures have also increased the cost of importing industrial equipment and additives.
She said that rising cement prices directly affect housing affordability for many Nigerians.
Anne emphasised that housing development should be regarded as a national priority.
She recommended a stable energy supply and policy incentives to support local manufacturing, while encouraging the government to support affordable housing projects.
She said that regional price differences were influenced by transportation distance and supply concentration, noting that the South-East depends largely on cement transported from other regions.
According to her, decentralising cement production will help stabilise prices nationwide, and stronger market monitoring will prevent price manipulation in distribution channels.
Anne added that reviving the Nigercem plant in Nkalagu, Ebonyi, could boost cement supply, create jobs and improve price stability in the South-East.
Also, Mr Joseph Aregbesola, an expert in the Construction Industry, said that the rising cost of cement and other building materials was already affecting housing prices and rental markets across the country.
Aregbesola said annual rent for a self-contained apartment in Lagos and Abuja had increased significantly, rising from about N800,000 previously to between N1.5 million and two million for a two-bedroom apartment, in many locations.
According to him, similar trends are emerging in other cities such as Kano and Port Harcourt and if the trend continues, housing affordability will deteriorate further in urban areas.
He called for increased investment in alternative building materials and innovative construction technologies that could reduce reliance on conventional materials like cement.
Aregbesola said that the Federal Government, through the Ministry of Housing and Urban Development, should support local production of building materials and improve logistics and supply chains.
Alhaji Rabiu Yusuf, a builder, called for government intervention to control the soaring cost of building materials, particularly cement.
According to him, cement prices vary across different parts of the country, for example, in the South-East, a 50kg bag sells for over N14,000, while in Abuja, it is priced at N12,000.
“This development has really caused most construction projects to stall.
“The high costs, driven by high energy expenses, logistics, and production challenges, threaten to stop construction, cripple housing development, and escalate rental prices.
“The surging costs make affordable housing unattainable and threaten thousands of jobs in the building sector,’’ he said.
Mr Richard Enoh, a landlord in the FCT, said that the cost of cement had risen by more than 30 per cent in recent months, while steel prices have increased by about 20 per cent and sharp sand costs have increased, by nearly 25 per cent.
