Cement Price Spike Rains on Parade of Home Builders

 City Pulse News

August 20, 2026A sharp and sudden rise in the price of cement is dealing a heavy blow to home builders, contractors and ordinary Nigerians trying to complete construction projects across the country.

In recent days, dealers have announced new retail prices that have pushed a 50kg bag of cement as high as ₦16,000 in some locations, up from around ₦13,000 just days earlier.

 Prices had already climbed steadily through the year — from between ₦9,300 and ₦9,700 in January to between ₦13,000 and ₦15,000 by July in many parts of the country.

The latest jump has left many builders stranded mid-project. Some who bought cement at the previous rate returned to the market only to discover they could no longer afford to continue work. 

One Lagos-based builder facing pressure from his landlord said the sudden increase has made it almost impossible to either finish or suspend construction.Other building materials have also risen in tandem. Concrete blocks, sand, granite and reinforcing steel have all recorded significant price increases, further inflating the overall cost of putting up a house.Industry observers and the Federal Competition and Consumer Protection Commission (FCCPC) have expressed concern. 

The commission is currently investigating possible price manipulation in the cement sector after a preliminary study showed that Nigerian consumers pay far more for cement than buyers in several neighbouring African countries, despite the country’s large production capacity and abundant limestone deposits.

Nigeria’s installed cement production capacity stands at between 60 and 65 million metric tonnes annually, while domestic demand is estimated at only 25 to 30 million tonnes. The country is also a net exporter of cement. Yet retail prices continue to climb, driven by factors that manufacturers cite as high energy costs, rising logistics expenses, foreign exchange pressures and other operational challenges.The impact is being felt widely. 

Housing projects are slowing down, infrastructure contracts are coming under pressure, and the long-standing national housing deficit is expected to worsen if the trend continues.

For many ordinary home builders who had hoped to complete their projects this season, the latest cement price spike has truly rained on their parade.City Pulse News will continue to monitor developments as the FCCPC investigation progresses and stakeholders call for urgent intervention.