Cementing Nigerians Out of Home Ownership

Despite plentiful limestone deposits and sufficient cement production capacity, cement prices in Nigeria have risen dramatically, outpacing homeownership for millions of citizens. The average price of 100 bags of cement escalated from about N380,000 in May 2023 to N1.25 million in August 2026—a staggering 229 percent increase. In some regions, a 50-kilogramme bag now trades between N13,000 and N15,000, compared to roughly N3,300-N3,500 in 2021.

For a middle-class earner planning a modest home, cement alone may consume several months' salary. Adding land, reinforcement bars, roofing materials, labor, plumbing, electrical fittings, and transportation, the ambition of becoming a landlord becomes an increasingly elusive dream. The consequences extend beyond individual disappointment.

Nigeria already grapples with a massive housing deficit, currently estimated at 14.925 million units, with the effective shortage possibly reaching 28 million units without action. As cement prices soar, the ripple effects touch the entire economy. Contractors adjust bids, developers raise selling prices, landlords seek higher rents, and public infrastructure becomes pricier.

Despite the country's ample cement production and export, the contradiction remains: abundant capacity should drive down prices, yet consumers now pay more. The Federal Competition and Consumer Protection Commission (FCCPC) is probing potential manipulation and anti-competitive practices. While the commission has not concluded wrongdoing, manufacturers attribute higher prices to energy costs, currency depreciation, imported machinery and spare parts, transportation, and logistics.

The Nigerian Institute of Quantity Surveyors identifies energy, foreign exchange, logistics, insecurity, and multiple taxation as significant cost pressures. The issue is compounded by public infrastructure projects using cement, further straining supplies for housing. Despite the rising costs burdening prospective homeowners, major cement producers report soaring profits.

Dangote Cement and BUA Cement posted substantial revenue and profit increases in the first half of 2026 compared to the previous year, while collectively, they achieved an 40.48 percent jump in profit after tax. This paradox leaves Nigerians questioning whether manufacturers are leveraging their ample production capacity to their financial advantage, while ordinary citizens continue to struggle with unaffordable housing.