ABUJA, NIGERIA — The Nigerian construction industry is facing a severe setback as the price of cement, a foundational material for infrastructure and housing, has climbed to a staggering ₦11,000 per bag. Market surveys conducted across major hubs like Abuja, Lagos, Kano, and Kwara State on Friday, February 27, 2026, confirm that the previous average of ₦9,000 to ₦9,500 has been completely overtaken by a fresh wave of inflation.
Price Breakdown by Brand and Region In the Federal Capital Territory, specifically in markets like Utako and Dei-Dei, a bag of BUA Cement is currently retailing between ₦11,000 and ₦11,200. Dangote Cement is not far behind, selling for approximately ₦10,800 to ₦11,000 depending on the vendor's location and transportation costs.
In Lagos State, the situation is even more critical. Some retailers in the Ojo and Badagry areas have reported prices as high as ₦11,500, blaming "middlemen" and "wholesalers" for creating artificial scarcity and hiking margins. In Northern states like Kano and Jigawa, dealers have pegged the benchmark price at ₦10,500 for bulk purchases, with retail prices firmly sitting at the ₦11,000 mark.
Factors Driving the Surge Manufacturers and distributors have pointed to a variety of economic pressures as the primary drivers of this hike. Key factors include:
High Energy Costs: The cost of gas and coal used to power cement kilns remains high, putting pressure on production margins.
Transportation and Logistics: The rising cost of diesel and the poor state of road infrastructure have increased the "landed cost" for retailers.
Imported Components: While the primary raw material (limestone) is abundant in Nigeria, certain additives and industrial spare parts are priced in US Dollars, making them susceptible to exchange rate fluctuations.
The Ripple Effect on Housing The implications of this price hike are dire for the Nigerian housing sector. Block makers in Kano and Abuja have already begun adjusting their prices, with a standard nine-inch block moving from ₦750 to ₦800 or ₦850. This increase trickles down to house rents and the overall cost of ongoing projects, many of which have already been suspended by developers.
Real estate experts warn that if the federal government does not intervene to stabilize the market—perhaps by easing importation restrictions or providing energy subsidies to manufacturers—the national housing deficit will only continue to widen. For many Nigerians, the dream of owning a modest home is becoming increasingly elusive as the cost of a single bag of cement now consumes a significant portion of the monthly minimum wage.
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