Cement prices spike above N15,000 as FCCPC probe drags on, builders warn of housing crisis

A 50kg bag of Dangote Cement is now selling for more than N15,000 in some parts of Nigeria, even as the Federal Competition and Consumer Protection Commission (FCCPC) investigates cement market practices. The fresh price movement has alarmed developers, architects and quantity surveyors, who say prolonged volatility could worsen Nigeria’s housing crisis by pushing up construction costs, property prices and rents.

Two explanations for the price jump

The Principal Partner of Space Button Architecture Limited, Amusan Oluseyi, said the sharp increase was difficult to justify given Nigeria’s substantial limestone deposits and cement production capacity. According to him, Nigeria has an estimated cement production capacity of between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes. He said the government and regulators needed to act quickly to protect prospective homeowners, warning that rising cement prices were already affecting the wider housing market. He also advocated greater investment in alternative building materials and construction technologies to reduce dependence on cement.

However, the Chairman of the Lagos Chamber of Commerce and Industry’s Engineering and Construction Group, Soji Adeniji, offered a different explanation. Adeniji said the increase was largely driven by temporary scarcity rather than an official price increase by manufacturers. He linked the shortage to recent plant maintenance by Dangote Cement and access restrictions affecting some depots. He expressed optimism that supplies would improve and prices would ease as more cement enters the market. He said he had not received an official notification from Dangote Cement announcing a new price.

Cost pressures across the supply chain

The Public Relations Secretary of the Nigerian Institute of Quantity Surveyors, John Agbezin, said several factors were contributing to cement production and distribution costs. He cited rising energy costs, foreign exchange pressures, diesel and gas expenses, logistics, insecurity, poor roads and multiple taxes. Agbezin noted that trucks sometimes take longer routes to avoid insecure areas, adding significantly to transportation costs. He also pointed to strong demand from major infrastructure projects as another factor putting pressure on available supplies.

Calls for transparency and competition

Construction operators are demanding greater transparency across the cement supply chain. Agbezin urged the FCCPC to conclude its investigation and sanction any cartels or market abuses identified. He also called for manufacturers and distributors to make factory and retail prices more transparent while encouraging the government to promote greater competition by supporting more cement producers.

For developers and prospective homeowners, the immediate concern remains whether the latest surge is temporary or signals another sustained increase in construction costs. A bag of cement has recently sold for up to N16,000, up from N13,000 days earlier, according to earlier reports. If cement prices remain unstable, industry operators warn that building a home could become even more expensive, deepening Nigeria’s housing affordability crisis.