Nigerian builders under pressure as cement price jumps to N16,000 per bag
By Aboki Forex —
Cement dealers across Nigeria have announced fresh price increases, with a 50kg bag now selling for as much as N16,000 in some markets, up from N13,000 recorded by buyers just days earlier. The jump has caught builders off guard, especially those midway through construction projects, and adds to a broader rise in building material costs over the past two years.
The Federal Competition and Consumer Protection Commission (FCCPC) has launched a three-month investigation into possible price manipulation by major cement manufacturers. Its preliminary findings, contained in a 40-page field report, point to artificial inflation despite Nigeria's large limestone deposits and domestic production capacity.
Builders caught off guard
Jude Njoku, building a three-bedroom bungalow along the Lagos-Badagry Expressway, said the increase hit him without warning. He bought bags at N13,000 each on Friday, but when he returned on Monday to buy more, dealers quoted N16,000.
He said: "I went back to buy more on Monday and was told that the price had gone up to N16,000 per bag. How can I continue this work at that price?"
Njoku, who is facing a landlord's quit notice, said the sudden increase has left him unable to continue or stop construction.
Rising cost of building materials
The current cement prices mark a steep rise from late 2024, when a bag sold for around N7,500. By the third quarter of 2025, that had risen to about N9,000 before reaching the N12,000 to N16,000 range now seen across different locations.
Other building materials have followed a similar upward path. Blocks have climbed from around N600 to N1,100 each. Sand has gone from N165,000 to N250,000 per 30 tonnes. Granite has risen from N530,000 to N780,000 per 30 tonnes. Reinforcing steel now costs N1.15 million per tonne, up from N850,000.
FCCPC probe and production capacity
The FCCPC investigation, carried out by its Anticompetitive Practices Department, examined why cement prices remain high given Nigeria's installed annual production capacity of about 62.8 million metric tonnes. Dangote Cement accounts for over 35 million metric tonnes, BUA Group holds up to 20 million metric tonnes, and Lafarge Africa, now known as HBM Nigeria, has nearly 12 million metric tonnes.
The FCCPC said most major manufacturers cooperated with investigators, though one declined to make its records available.
The federal government has also urged cement manufacturers to consider reducing prices, saying the sharp increase is driving up the cost of infrastructure projects and placing additional financial pressure on contractors handling public works. The minister disclosed that contractors have increasingly asked the ministry to review existing contracts, citing the higher cost of cement.
What it means for the naira and businesses
The sustained rise in cement and other building material prices will hit private developers and families building homes hardest. With the naira under pressure and input costs climbing, construction costs are likely to stay elevated, forcing many to shelve projects or renegotiate contracts.