Nigerians are facing a significant increase in cement prices, with the cost of a 50-kilogram bag rising to N10,500, up from N9,800 in December 2025. This 7.1 percent hike has been implemented in various parts of the country, including Abuja, Nassarawa, and Niger. The price surge is notable, given Nigeria’s abundance of natural resources for cement production, including limestone deposits in Obajana, Kogi State, and Okpella, Edo State.
The cement price increase is expected to have far-reaching consequences, including a potential rise in house rents. In urban areas like Abuja and Lagos, the minimum rent for self-contained homes has already increased by over 100 percent, reaching N800,000 per annum. The Nigerian government has not publicly addressed the rising cost of living and rent.
In December 2025, Nigeria’s inflation rate climbed to 15.15 percent, up from 14.45 percent. The former president of the Real Estate Developers Association of Nigeria (REDAN), Alhaji Aliyu Oroji Wamakko, expressed concern over the cement price hike, warning that it poses a threat to property development, housing costs, and employment. Wamakko noted that higher construction costs would inevitably lead to increased rent for apartments, potentially forcing businesses in the construction value chain to shut down and resulting in job losses.
Wamakko recalled that major cement producers, including Dangote and BUA, had pledged to reduce prices to around N7,000 per bag after a previous price increase. However, the current reasons for the hike remain unclear, and the government has not provided an explanation. The former REDAN president attributed the price surge to factors such as increased demand driven by road construction projects, currency fluctuations, and Nigeria’s reliance on imported chemicals and equipment for cement production.
Wamakko called for a comprehensive review of the cement production and pricing system to identify the root causes of the problem and develop lasting solutions. The situation has become unpredictable, making it challenging to estimate how high cement prices could rise. As the Nigerian government remains silent on the issue, the country’s construction and real estate sectors face uncertainty, with potential consequences for the broader economy.
