The Real Estate Developers Association of Nigeria (REDAN), in collaboration with the Centre for Housing and Sustainable Development at the University of Lagos (CHSD-UNILAG), has raised serious concerns over the escalating cost of cement and other critical building materials, a trend that poses a major threat to housing delivery and infrastructure development across the country.

The organisations emphasised that collaborative efforts among government, industry players, researchers, and financial institutions are necessary to ensure the long-term sustainability of Nigeria’s housing and construction sector.  They called for urgent government intervention and industry collaboration to stabilise the cost of building materials.

They also called for policy measures that would support local production, improve logistics, and market transparency in the construction materials sector, as well as expressed confidence that with constructive dialogue, sound policy interventions, and stronger cooperation among stakeholders, practical solutions can be developed to stabilise the market and protect the future of housing delivery.

Addressing journalists during a Joint Press Conference held at the CHSD-UNILAG, the President and Chairman of the Council of REDAN, HRM Oba Akintoye Adeoye, noted that the sharp rise in cement prices is already exerting significant pressure on developers and investors in the housing sector.

According to him, the price of a 50kg bag of cement, which sold for about N7,500 in the last quarter of 2025, rose to between N9,000 and N10,000 at the beginning of 2026, and has now climbed further to between N11,500 and N15,000 in several parts of the country.

He warned that the rapid increase within such a short period is severely disrupting housing development projects nationwide. “Cement remains one of the most critical inputs in construction, accounting for a significant proportion of the overall cost of building houses. When the price of cement rises, the entire cost structure of housing development is affected,” Adeoye said.

He explained that the rising cost of cement, alongside increases in the prices of iron rods, sand, and other construction materials, has placed developers under enormous financial pressure. “As a result, many developers are already experiencing project delays, scaling down housing developments, and in some cases suspending or abandoning projects altogether,” he added.

Adeoye further warned that the situation is particularly troubling at a time when Nigeria is already grappling with a significant housing deficit, stressing that any increase in construction costs would further push homeownership beyond the reach of millions of Nigerians.

He also cautioned that persistent increases in building material prices could create unintended consequences in the industry. “When construction costs rise beyond manageable levels, there is always the risk that some individuals may resort to the use of substandard materials in an attempt to cut costs, which can ultimately compromise the quality and safety of buildings,” he said.

REDAN urged the Federal Government, particularly the Federal Ministry of Housing and Urban Development, to engage cement manufacturers and other stakeholders in the building materials value chain to address the current price volatility.

Also speaking, the Founder Director of the CHSD-UNILAG, Prof. Timothy Nubi, emphasised that the building and construction sector remains a critical driver of Nigeria’s economic growth, employment generation, and urban development.

He noted that the sector has continued to demonstrate strong growth and recently recorded a major milestone by surpassing the oil sector in its contribution to national economic activity. “The construction sector is a vital component of Nigeria’s economy. It contributes significantly to Gross Domestic Product (GDP) growth and employment. We cannot afford to lose the momentum that the sector has gained,” he said.

Nubi explained that the rising cost of cement is part of a broader trend affecting other construction materials. According to him, cement prices have increased by over 30 per cent in the past quarter, while steel prices have risen by about 20 per cent, and sharp sand prices have jumped by approximately 25 per cent. Prices of wood and granite have also recorded notable increases.

“These price hikes are being driven by a combination of global market pressures, logistics challenges, and rising local demand,” he said.

The implication, he explained, is that construction costs are rising sharply, which could lead to project delays, cancellations, and increased housing prices. He added that the impact of these rising costs is already being felt in housing and rental markets across major Nigerian cities.

For instance, the annual rent for a self-contained apartment in Lagos and Abuja, which previously averaged about N400,000, has now risen to between N800,000 and N1.5 million in many locations. Similar trends are being observed in cities such as Kano and Port Harcourt.

Nubi further explained that even modest housing projects are becoming increasingly expensive. “A modest two-bedroom bungalow requires several hundred bags of cement. With cement prices now exceeding N10, 500 per bag in many areas, construction costs are rising dramatically,” he said.

He noted that the consequences of the rising cost of building materials extend beyond developers.

“Contractors are facing squeezed margins, which may affect project timelines and quality. Homebuyers are finding it increasingly difficult to afford housing, while the broader economy could also be affected if the construction sector slows down,” he added.

In addition, CHSD-UNILAG advocated increased investment in research into alternative building materials and innovative construction technologies that could help reduce dependence on conventional materials.

Nubi noted that the centre is committed to providing research-based solutions that can help address housing challenges and improve the resilience of Nigeria’s construction sector. “We need greater research support that will provide sustainable solutions for the industry and strengthen the contribution of the construction sector to the national economy,” he said.