Nigeria Construction Costs In 2026: What a 367% Cement Rise Means for Buyers
Cement rose from N3,000 to N15,000 a bag in seven years. Here’s what that means for developers, buyers, and the housing market.A 50kg bag of cement cost between N2,500 and N3,000 before 2020. By March 2026, that same bag costs between N11,500 and N15,000.
That is a 367% increase in seven years, and Nigeria construction costs in 2026 shows no sign of slowing down. In fact, 30% of that rise happened in the first three months of 2026 alone.
These figures come from PropComms Africa’s “Build Cost, Broken Market” report, released in March 2026. Together, they explain something buyers and investors in Nigerian real estate are feeling but may not have fully quantified: building a home in Nigeria has never been this expensive. And, notably, it is not just about cement.
Cement price milestones, pre-2020 to March 2026. Source: PropComms Africa, “Build Cost, Broken Market” (March 2026).
The Full Picture: Every Construction Input Is Rising
According to the PropComms Africa report, Nigeria’s construction cost crisis goes well beyond cement. Steel, sand, and finishing materials have all climbed sharply, and the combined effect is changing the entire housing market.
In January 2026 alone, manufacturers added N500 per bag when new tax measures took effect, according to Economy Post. As stated earlier, the pressure is not limited to cement, every major building input tells a similar story.
Nairametrics reported that 10mm steel rods climbed from N335,000 per tonne in 2023 to N1,040,000 per tonne in 2025. Meanwhile, Housing TV Africa noted that sharp sand rose from N40,000–N80,000 per tipper load in 2025 to N170,000 and above in 2026. Another analysis, similarly, found that roofing costs increased by over N2.3 million on a single project, while windows, doors, and finishing works recorded increases exceeding N6 million due to imported materials becoming costlier after currency pressures.
Who Controls Cement Pricing in Nigeria
The report identified a key structural problem: three manufacturers, Dangote Cement, BUA Cement, and Lafarge Africa, collectively control over 95% of Nigeria’s domestic cement supply. The report argues that this level of market concentration means that even when production costs moderate, retail prices may not fall proportionally.
Producers have attributed price increases to rising energy costs, foreign exchange volatility, logistics challenges, and multiple taxation. However, the report stated that these explanations do not fully account for current price levels.
We felt it necessary to address the nation on a matter that is rapidly becoming a major challenge to housing delivery and infrastructure development in Nigeria, the escalating cost of cement and other critical building materials.
Oba Akintoye Adeoye, REDAN President — via VanguardThe Real Estate Developers Association of Nigeria (REDAN) has formally appealed to the Federal Competition and Consumer Protection Commission (FCCPC) to investigate cement pricing dynamics, according to Geoponts Properties. Aliyu Oroji, former REDAN president, added that escalating costs are pushing finished homes far beyond the reach of average citizens, forcing many into a cycle of permanent renting, according to CemNet.
What Rising Construction Costs Are Doing to Housing Supply
The PropComms Africa report’s summary is direct: projects are being abandoned, budgets renegotiated, and housing supply is contracting precisely when Nigeria’s reported 28-million-unit deficit demands the opposite.
This timing is particularly damaging. Closing Nigeria’s housing gap requires building roughly 700,000 homes per year, yet the country currently builds closer to 350,000. As a result, rising construction costs are making it harder, not easier, to close that gap. Nigeria Housing Market reported that REDAN has warned the trend could stall housing projects and worsen the country’s housing deficit, adding that affordable housing goals may become increasingly difficult to achieve without urgent intervention.
According to the National Bureau of Statistics, Nigeria’s inflation rate reached 15.69% in April 2026, up from 15.38% in March. This sustained pressure continues to affect production, logistics, and distribution costs throughout the construction value chain, as reported by Housing TV Africa.
What Nigeria Construction Costs In 2026 Mean for Property Buyers
When cement, steel, sand, and labour all rise simultaneously, the cost eventually reaches property prices. Leadership Newspaper reported that in cities like Lagos and Abuja, the price of newly built homes has surged in tandem with construction costs — placing them far beyond the reach of many civil servants.
I have been saving for years to build my own house. But every time I get closer, the cost of cement goes up again.
A school teacher in Ogun State, via Leadership NewspaperFor buyers, this creates three concrete realities in 2026. Each one matters, and together they change how a purchase decision should be made.
A residential house that cost N100 million to build in 2024 may cost N130 million or more by late 2026. Developers who absorb these costs reduce margins. Those who pass them on raise prices. Either way, the buyer faces a more expensive market than just two years ago.
Geoponts Properties noted that developers face two difficult choices: absorb increased project expenses, often at the cost of slimmer margins and delayed delivery, or pass costs on to buyers by raising prices. Many, however, are choosing a third option — pausing new projects entirely. This reduces future supply and sustains upward price pressure across the market.
When you buy off-plan at today’s prices, the developer is building at tomorrow’s costs. Consequently, developers with strong capital structures and locked-in material procurement can honour their commitments, while those without that cushion may face delivery delays or cost renegotiation. Choosing a financially stable developer therefore matters more than ever before.
What This Means for Real Estate Investors
For investors, rising construction costs carry a different but equally important implication, one that, in some respects, favours those already holding completed property.
The Estate Intel 2025/2026 Lagos Real Estate Pipeline Report, cited by Nairametrics, links project delays directly to rising construction costs and financing constraints. Fewer completions mean less new stock entering the market, which, in turn, means existing properties face less competition from new supply, supporting price appreciation for current owners.
Renovation and refurbishment budgets also need adjusting. If you own property that needs upgrading, your budget should reflect current material prices, not 2024 estimates. Above all, developer selection is now a genuine risk factor in its own right.
Only developers with strong capital structures, disciplined execution models, and realistic absorption strategies are expected to remain competitive in 2026.
Victor Ameh, Managing Director, Legendary Foreshore — via NairametricsWhat Buyers Can Do Right Now
Despite rising costs, buyers are not without options. The following steps can meaningfully reduce risk and protect your budget in this environment.
- Verify your developer’s capital position. Ask whether materials are secured and how cost increases are being managed. A developer who locked in cement and steel prices in late 2025 is in a stronger position than one procuring at current rates.
- Get a fixed-price contract where possible. If buying off-plan, negotiate for a fixed total cost rather than an estimate subject to material cost adjustments.
- Build in a contingency. If building personally, budget 15–20% above contractor quotes to account for material price movements during construction.
- Look at completed properties. A finished property with a verified title avoids construction cost risk entirely, the price reflects what it cost to build, not what it will cost.
- Consider markets where construction budgets go further. In Ibadan, land costs 40–60% less than Lagos equivalents, so the same budget delivers considerably more property. You can read more in MKH Properties’ Ibadan real estate investment guide.
The Bottom Line on Nigeria Construction Costs In 2026
Nigeria’s construction cost crisis is real, well documented, and worsening. Cement is 367% more expensive than it was seven years ago. Steel rods rose 210% in two years. Sand has more than doubled in price since 2025. These come from PropComms Africa’s March 2026 report, REDAN’s formal statements, and NBS inflation data.
The consequences are documented and serious: projects abandoned, supply contracting, homeownership moving further out of reach for low- and middle-income Nigerians. For buyers and investors, however, the implication is clear. Understand the cost environment before you commit, verify your developer’s ability to absorb it, and choose your entry point strategically. The market is still full of opportunity, but in 2026, doing your homework on construction costs is no longer optional. It is essential.
- PropComms Africa, “Build Cost, Broken Market” — via The Cable, March 2026
- Economy Post — “Housing supply shrinks as cement prices jump 367% in 7 years,” March 2026
- Vanguard — “Affordable housing: stakeholders raise alarm over escalating price of cement,” March 2026
- Nigeria Housing Market (NHM) — “Cement Price Hike Intensifies Pressure on Nigeria’s Housing Sector,” March 2026
- Housing TV Africa — Construction cost and inflation coverage, 2026
- Nairametrics — Real estate consolidation and steel price reporting, April 2026
- Castles Lifestyle — Residential construction cost analysis, June 2026
- Leadership Newspaper — “Soaring Cement Costs Shut Millions Out of Homeownership,” April 2026
- Cemnet — “Nigerian homeownership dreams crumble as cement prices soar,” April 2026
- Geoponts Properties — Developer impact analysis, March 2026
- National Bureau of Statistics (NBS) — Nigeria inflation data, 2026
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