Building sector operators have warned that the erratic surge in cement prices which recently saw a 50kg bag of Dangote Cement surpass ₦15,000 in certain regions is significantly worsening Nigeria's housing deficit by inflating construction costs, real estate values, and residential rents. Industry experts emphasize that these price spikes are particularly difficult to justify given Nigeria's vast limestone deposits and an annual cement production capacity of 60 to 65 million metric tonnes, which far exceeds the domestic consumption demand of 25 to 30 million metric tonnes.
While some stakeholders attribute the current cost spikes to a brief period of artificial scarcity caused by plant maintenance and raw material site access restrictions at major production facilities, others point to broader macroeconomic pressures. The removal of fossil fuel subsidies and foreign exchange volatility have doubled energy and production costs, while poor road infrastructure, security risks along haulage routes, and reliance on forex-dominated additives add up to ₦3,000 to the cost of a single bag. Furthermore, heavy supply diversion toward major government projects, such as coastal road developments, leaves the retail market facing continuous shortages.
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To prevent further strain on prospective homeowners, sector leaders are calling on the Federal Competition and Consumer Protection Commission (FCCPC) to complete and publish its ongoing investigation into market abuses and potential cartel activity. They advocate for transparent factory-gate pricing to stop distributors from imposing arbitrary retail markups, alongside broader industry reforms. By expanding local manufacturing capacity beyond major producers like Dangote, BUA, and Lafarge, and supporting sustainable alternative technologies like laterite-based Latcrete blocks, Nigeria can reduce its reliance on traditional cement and build a more resilient housing sector.
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