Building materials crisis: Nigeria's construction costs surge over 400% in five years, experts warn

From cement and blocks to iron rods and roofing sheets, the cost of building materials in Nigeria has more than doubled in the last five years, with one expert putting the cumulative increase at about 420 per cent, deepening the country's housing crisis.

Stakeholders in the building sector say the ripple effects are already being felt, with both construction costs and rents rising sharply in major cities. Nigeria's housing deficit is now estimated at over 28 million units, creating what industry players describe as a perfect storm in the real estate and construction sector.

Former chairman of the Nigeria Institute of Building and lecturer at Obafemi Awolowo University, Ile-Ife, Professor Bolaji Wahab, said building materials account for 65 to 75 per cent of any building project's cost. He attributed the surge to heavy dependence on imports and exposure to exchange-rate shocks, noting that even locally produced goods carry dollar-denominated inputs.

Wahab also pointed to the cost of production and energy, including power generation for cement plants and diesel for trucks, as well as poor roads, insecurity on highways, inflation and high borrowing costs, saying banks charge up to 26.5 per cent interest, which limits manufacturers' access to cheap funds.

He argued that the solutions are already known but have lacked implementation, urging the government to fund research that enables local production of tiles, roofing sheets and fittings to cut dependence on foreign exchange, and to invest in technical and vocational education, including the National Skills Qualifications Framework, to certify artisans.

"Manufacturers, distributors, and the final consumers all bear the cost. That is why you see prices rising every quarter," Wahab said, warning that without urgent action millions of Nigerians risk remaining trapped in a cycle of high rent, overcrowding and abandoned projects.