By Favour Udezue

The deteriorating condition of roads, rising logistics costs and distribution bottlenecks are emerging as major factors behind a fresh surge in cement and other building material prices, raising concerns among builders, developers and other stakeholders over the implications for Nigeria’s construction and housing sectors.

A 50-kilogramme bag of cement, which sold for between N11,500 and N12,500 in February, now sells for as high as N15,000 in some parts of the country, while a bag of Plaster of Paris (POP), which sold for about N8,300 two months ago, now costs approximately N9,000.

Similarly, a five- and ten-tonne truckload of sharp sand, which sold for between N40,000 and N60,000, now costs between N85,000 and N150,000, while a 20- and 30-tonne truckload, which previously sold for between N70,000 and N120,000, now costs between N170,000 and N400,000. A 30-tonne truckload of granite, which cost N430,000 last year, now sells for as much as N860,000, according to dealers and retailers surveyed by The Guardian.

However, prices of paint and reinforcement bars, popularly known as iron rods, have remained relatively stable. A 20-litre bucket of emulsion paint currently sells for between N18,000 and N20,000, while a four-litre container costs between N4,000 and N5,500, with dealers saying prices have remained largely unchanged since December.

Reinforcement bars have also recorded limited price movements, with 8mm rods selling for about N6,500, 10mm for N7,500, 12mm for N9,300 and 16mm for about N17,000 in Lagos. In some regions, a tonne of 16mm iron rods sells for between N799,000 and N1.38 million.

The sharp increases are adding fresh pressure to an already distressed construction industry, where developers are grappling with high borrowing costs, expensive building materials and declining purchasing power among prospective homeowners.

Experts said the latest increases are affecting government infrastructure projects, private housing developments and small-scale building activities, with some projects being slowed down, redesigned or suspended as contractors struggle to cope with escalating costs.

Although the Federal Government and institutions such as the Federal Competition and Consumer Protection Commission (FCCPC), Ministry of Works and National Assembly have previously expressed concerns over cement prices, market operators said the factors responsible for the rising costs have persisted.

Dealers identified poor road conditions, high fuel costs, delays in loading trucks at factories, maintenance activities at some plants and other logistics challenges as major contributors to the latest price movement.

A cement retailer in Lagos, Mathew Ogoke, who spoke with The Guardian, said distribution had become increasingly difficult for dealers, particularly as trucks spend long hours, and in some cases days, navigating bad roads and waiting to load products from factories.

According to the retailer, the additional time spent on the road and at loading points translates into higher transportation costs, which are eventually transferred to consumers. He added that maintenance and renovation activities at some cement factories may also have affected supply to the market.

Another dealer, Mrs Olushola Akinleye, attributed the sharp increase largely to rising petrol and transportation costs. She said moving cement from factories and depots to distributors and retailers had become more expensive as vehicle operators factor fuel expenses, road delays and maintenance costs into freight charges.

For Miss Chioma Justice, a cement dealer, the most immediate impact has been a significant decline in demand. She said many prospective customers had either postponed their building plans or reduced the scale of their projects because they could no longer afford cement at the current price.

“People no longer buy cement the way they used to. The market is dry. Only wealthy people can comfortably continue building houses,” she said.

Justice lamented that consumers’ purchasing power had weakened considerably, making it increasingly difficult for low- and middle-income Nigerians to embark on private housing projects.

A POP dealer, Mr Kelechi Peter, said the cost of the product had also risen, although not as sharply as ordinary cement. Peter said dealers face significant difficulties obtaining supplies from major distributors.

“In most cases, when you send your truck to pick up the products, it can remain there for two or three days before it is loaded,” he said.

He attributed the delays largely to scarcity and supply bottlenecks, noting that the waiting period increases dealers’ operating costs because truck owners charge for the additional time spent at loading locations.

Industry operators have repeatedly argued that the final cost of building materials is influenced not only by factory prices but also by the condition of roads linking production centres, depots and construction sites.

For cement, which is bulky and heavily dependent on road transportation, the implications are particularly significant. Trucks transporting cement over damaged roads consume more fuel, spend longer periods in traffic and incur higher maintenance costs. These expenses are ultimately reflected in the prices paid by retailers, builders and homeowners.

The situation is particularly troubling for the housing sector, where construction costs have already risen sharply in recent years.

Former President of the Nigerian Institute of Building (NIOB), Mr Kunle Awobodu, said logistics and energy remained major cost drivers.

“Poor road infrastructure can compound the problem by increasing haulage time, fuel consumption, vehicle maintenance and turnaround costs, particularly when cement has to move long distances from the plant to major consumption centres,” he said.

He, however, identified other factors, including production costs, capacity utilisation, distribution margins, competition and market concentration, as well as pricing practices, as contributing to the crisis.

Awobodu said, “The real danger is that higher input costs reduce project viability, while reduced construction constrains housing supply. Constrained supply worsens affordability and pushes more Nigerians further away from home ownership.”

He called for the rehabilitation of roads linking factories and raw material sources, greater price and distribution transparency, and improved distribution efficiency.

An estate surveyor and valuer, Mr Femi Oyedele, said rising building material prices were affecting ongoing construction projects, triggering disagreements over contract sums in some cases and causing frequent variations.

He urged manufacturers of cement and other building materials to help ease the situation by adopting gas-powered vehicles to reduce distribution costs.

Oyedele also advocated the use of alternative building materials that could lower construction costs, including clay, gum for bonding bricks and plastic syrups as walling materials.