Cement Price Surge Worsens Nigeria's Housing Crisis, Builders Warn
Written on
Building sector operators say the erratic surge in cement prices, with a 50kg bag of Dangote Cement topping N15,000 in some locations, is driving up construction costs, property values and rents.
Building sector operators have warned that the erratic surge in cement prices is worsening Nigeria's housing crisis by driving up construction costs, property values and rents.
The warning follows the price of a 50kg bag of Dangote Cement rising above N15,000 in some locations, despite an ongoing investigation by the Federal Competition and Consumer Protection Commission (FCCPC) into possible price hikes in the cement industry.
Amusan Oluseyi, principal partner at Space Button Architecture Limited, said the increase remained difficult to justify given Nigeria's large limestone deposits and cement production capacity estimated between 60 and 65 million metric tonnes annually, against domestic consumption estimated between 25 and 30 million tonnes. He urged the FCCPC to take decisive steps to protect prospective homeowners.
Oluseyi also called on the government to promote alternative building materials and construction methods to reduce the sector's dependence on cement, citing laterite-based construction materials including Latcrete blocks developed by Nigerian architect and artist Demas Nwoko.
Soji Adeniji, chairman of the Lagos Chamber of Commerce and Industry's Engineering and Construction Group, attributed the latest price spike largely to temporary scarcity rather than an official price increase, linking it to recent plant maintenance by Dangote Cement and access restrictions affecting some material depots.
Adeniji described the prevailing prices as artificial, arguing that inadequate supply had allowed distributors to impose arbitrary margins, and said prices should ease once product floods back into the market. The FCCPC's investigation into the cement market remains ongoing.