LAGOS / ABUJA, NIGERIA — The Nigerian construction industry is facing a severe setback as the retail price of cement has surged to unprecedented levels. As of Monday, March 9, 2026, market surveys across major cities show that a 50kg bag of cement, which previously hovered around ₦8,500 to ₦9,500, is now being sold for between ₦11,500 and ₦15,000.
Market Variations and Regional Prices In the Federal Capital Territory, Abuja, and surrounding areas like Lugbe, retailers are quoting prices at the higher end of the spectrum, with some brands reaching ₦14,500 per bag. In Lagos and the Southwest, prices fluctuate between ₦11,500 and ₦13,000, while the Southeast and parts of the North are seeing prices consistently above ₦14,000 due to added logistics and transportation costs.
The price hike has affected all major manufacturers, including Dangote Cement, BUA Cement, and Lafarge Africa. While the manufacturers have not officially announced a uniform base price increase, distributors claim that the "landed cost" of the product has risen significantly due to the removal of certain transport subsidies and the increasing cost of diesel used in heavy-duty delivery trucks.
Drivers of the Inflation Industry analysts attribute this latest spike to three primary factors:
Energy Costs: The continued rise in gas and diesel prices has made the energy-intensive process of cement production and distribution significantly more expensive.
Currency Fluctuations: Even though cement is produced locally, many of the spare parts for machinery and some additives are imported, making the sector vulnerable to foreign exchange volatility.
Logistics Bottlenecks: Security concerns and poor road infrastructure have increased the time and cost required to move product from plants to retail points.
Impact on the Housing Sector The hike is already having a ripple effect on the real estate market. Many small-scale contractors have reportedly suspended operations, citing the inability to keep up with the fluctuating costs of materials. "We gave quotes based on ₦9,000 last month. At ₦15,000, we are essentially working at a loss," one site engineer in Abuja lamented.
There are growing calls for the Federal Government to intervene, with the Real Estate Developers Association of Nigeria (REDAN) urging the Ministry of Industry, Trade and Investment to meet with the "Cement Big Three" to find a sustainable pricing model. Without intervention, many fear that the government’s mass housing targets for 2026 will remain unachievable.
English (US) ·