Nigeria's real estate sector struggles as material prices surge by 400% in seven years

Nigeria’s real estate and construction sectors are navigating severe cost pressures as building material prices surged by as much as 440 per cent between 2019 and 2026, according to a report by Panterra Real Estate Group led by Ayo Ibaru.

The data index shows iron rods rising by 410% per tonne, a 50kg bag of cement increasing from about N2,500 in 2019 to N14,000 in 2026, and roofing sheets surging by 440% per square metre. A standard six-inch block also rose by 275%, closely tracking the increase in cement prices.

The report attributes the continuous and steep price increases to rising import exposure, currency depreciation and increasing production costs. It notes that between 60% and 80% of finishing materials, including tiles, sanitary ware and window fittings, are imported, resulting in widespread reliance on grey-market channels. Three major players — Dangote, BUA and Lafarge now HMB — control approximately 70% of Nigeria’s domestic cement market.

Built-environment professional bodies, including the Nigerian Institute of Building, the Nigerian Institution of Estate Surveyors and Valuers and the Nigerian Society of Engineers, have warned that uncontrolled increases in building material prices threaten the provision of affordable housing across major urban areas. Former NIOB President Kunle Awobodu said developers were being forced to renegotiate project contracts midway through construction because of unpredictable material cost increases.

The report also highlights underutilised local steel production capacity, with Delta Steel historically operating at less than 30% capacity, leaving the market heavily reliant on imported steel products. It further notes that unregulated timber supply and accelerating deforestation are compounding long-term supply risks.