Cement Prices Surge Amid Housing Crunch: 2020 Vs 2026

According to Ireporter Online, the price of a 50kg bag of cement in Nigeria has surged by as much as 367 per cent over the past seven years, exacerbating the country’s housing crisis and pushing construction costs to record levels. Cement, a fundamental building material, sold for between ₦2,500 and ₦3,000 before 2020 but now costs up to ₦15,000 as of March 2026.

A recent study by PropComms Africa indicated that prices have risen steadily over the years, with a sharp spike in recent months. The report, titled “Build Cost, Broken Market,” shows that cement prices have moved from ₦2,500–₦3,000 pre-2020 to ₦11,500–₦15,000 in March 2026, marking a 30 per cent increase in the first quarter of 2026 alone. Analysts attribute part of the jump to new tax measures implemented earlier this year.

The report warns that escalating prices are severely affecting Nigeria’s housing sector. Projects are being abandoned, budgets renegotiated, and housing supply is shrinking at a time when the country faces a 28-million-unit deficit. Urban rents have more than doubled, rendering homeownership unattainable for many low- and middle-income Nigerians.

Other construction materials have also seen significant price hikes. Steel has risen by roughly 20 per cent, sharp sand by 25 per cent, and iron rods by over 120 per cent in certain periods. Market analysts note that these increases are compounding challenges for developers and prospective homeowners.

PropComms Africa highlighted that market concentration is a major factor driving cement prices. Three companies—Dangote Cement, BUA Cement, and Lafarge Africa—control over 95 per cent of the domestic market. While manufacturers cite energy costs, foreign exchange volatility, logistics, and taxes as reasons for the increases, the report contends these factors do not fully justify the magnitude of the hikes. Despite a production capacity of 65 million metric tonnes annually, compared to domestic consumption of 32 million tonnes, prices continue to climb, raising concerns over industry pricing practices.

To address the situation, PropComms Africa recommended structural reforms to increase competition, including transparent access to limestone deposits, separation of manufacturing and distribution networks, and strengthened antitrust enforcement. In response, the Federal Competition and Consumer Protection Commission (FCCPC) announced on March 12 that it had commenced a nationwide investigation into cement pricing, with an investigative team tasked to examine market conduct and pricing practices.