Cement Above N13,000 a Bag: Expert Urges Tax Cuts, N1tn Mortgage Fund

Cement prices have climbed above N13,000 per bag in parts of Nigeria, pushing up construction costs, house rents and the country's housing deficit. A housing expert, Aliyu Wammakko, says only deliberate government intervention can bring the price down.

Wammakko, a former president of the Real Estate Developers Association of Nigeria (REDAN), called for tax cuts, production incentives, subsidies and stronger mortgage financing to make cement and housing more affordable.

From N7,500 to N13,000 in under a year

According to Wammakko, a bag of cement that sold for about N7,500 in March 2025 now costs approximately N13,000. That is an increase of more than 70% in roughly a year.

He said the rising cost of cement, iron rods and other essential materials is making it increasingly difficult for ordinary Nigerians to build or buy homes. Landlords, property developers and tenants are all feeling the pressure as construction and maintenance expenses climb.

Wammakko argued that the surge in house rents is tied directly to the cost of materials used to build and renovate residential properties.

"The higher cost of rent now in Nigeria doesn't come by accident. It has its genesis in the cost of building materials," he said in an interview with a Nigerian media house.

Tax relief, subsidies and closer monitoring

The former REDAN president urged the Federal Government to review the numerous taxes and levies imposed on cement manufacturers. Reducing production-related taxes and providing targeted incentives, he said, could lower manufacturers' operating costs and allow them to sell at more affordable prices.

He also proposed a subsidy for cement production, explaining that cheaper building materials would reduce construction costs and eventually moderate house prices and rents.

Wammakko added a caveat: any government support would need proper monitoring to ensure that savings passed to producers actually show up in retail prices and reach consumers.

RECON Bill and N1 trillion for mortgages

Wammakko called on the government to sign the Real Estate Regulation and Development Bill, known as the RECON Bill, which was passed by the ninth National Assembly. He said stronger legislation would improve regulation in the housing sector and support policies aimed at closing Nigeria's housing deficit.

Beyond cheaper materials, he wants at least N1 trillion injected into the Federal Mortgage Bank of Nigeria. Higher funding, he said, would let more Nigerians access affordable mortgages and construction loans.

Combining cheaper building materials with accessible long-term finance, in his view, would stimulate housing development, expand homeownership and give relief to tenants facing repeated rent increases.

The wider price debate

Nigerians have been demanding that cement manufacturers explain why a 50kg bag now retails between N12,000 and N15,000 in many parts of the country, a sharp jump from roughly N7,500 less than a year ago. That is despite Nigeria holding installed production capacity of more than 60 million metric tonnes annually and large limestone reserves.

Ezekiel Nya-Etok, an architect and affordable housing advocate who serves as executive director of Estate Services at the Federal Housing Authority, said Nigerians have a right to know why prices rose so sharply at a time when millions cannot afford decent housing.

For now, the N13,000 bag is the number builders are working with, which keeps rents firm and pushes the cost of new housing out of reach for many households.