Cement price in Nigeria has surged up to 367% from 2020 to 2026, reaching ₦15,000 per bag and worsening the country’s housing crisis

The price of cement in Nigeria has recorded a dramatic increase over the past seven years, rising by as much as 367 per cent and significantly worsening the country’s housing and construction challenges.

The cement price Nigeria 2026 trend shows that a 50kg bag, which sold for between ₦2,500 and ₦3,000 before 2020, now costs as high as ₦15,000 in several parts of the country.

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A recent industry report titled “Build Cost, Broken Market” attributed the sustained price surge to a combination of market structure, economic pressures, and regulatory factors. The report highlighted a consistent upward trajectory in cement prices over the years, with particularly sharp increases recorded from 2022 onwards.

Between 2021 and 2022, prices nearly doubled, reflecting broader economic conditions and rising production costs. By February 2024, cement was already selling between ₦10,000 and ₦14,000 per bag, before stabilizing briefly in late 2025. However, prices resumed their upward climb in early 2026, with a 30 per cent increase recorded within the first quarter alone.

The report noted that new tax policies introduced in January 2026 contributed to additional price increases, with manufacturers adding approximately ₦500 per bag following the policy changes.

The rising cost of cement has had a ripple effect across Nigeria’s housing sector. Developers are reportedly abandoning projects, renegotiating budgets, and scaling down construction plans due to escalating expenses.

Analysts warn that this trend is shrinking housing supply at a time when Nigeria is already facing an estimated 28-million-unit housing deficit.

Urban rents have also increased significantly, making homeownership increasingly difficult for low- and middle-income earners.

The cost pressures extend beyond cement, as other construction materials such as steel, sharp sand, and iron rods have also seen substantial price increases.

The report identified market concentration as a major factor influencing pricing in the cement industry. Three major manufacturers Dangote Cement, BUA Cement, and Lafarge Africa control over 95 per cent of the domestic market, limiting competition.

While producers have cited factors such as energy costs, foreign exchange volatility, logistics challenges, and taxes as reasons for price hikes, the report argues that these explanations do not fully account for the magnitude of the increases.

Despite Nigeria’s estimated cement production capacity exceeding domestic consumption, prices have continued to rise, raising concerns about market dynamics and pricing practices within the sector.

In response, the Federal Competition and Consumer Protection Commission (FCCPC) has initiated an investigation into cement pricing across the country. The probe aims to examine potential anti-competitive practices and ensure fair market conditions.

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Industry analysts and stakeholders are calling for reforms to improve competition, including opening access to raw materials, encouraging new entrants into the market, and strengthening regulatory oversight.

As construction costs continue to climb, the trajectory of cement prices remains a critical factor shaping Nigeria’s housing sector and broader economic outlook.