Cement Prices Rise in Nigeria, Threatening Housing Market

On August 27, 2023, cement prices in Nigeria have surged, with a 50kg bag of Dangote Cement exceeding ₦15,000 in some areas. This price volatility is raising concerns among construction industry operators about a worsening housing crisis, as many households already face high living costs.

Soji Adeniji, Chairman of the Lagos Chamber of Commerce and Industry’s Engineering and Construction Group, attributed the price increase mainly to temporary scarcity caused by recent maintenance at Dangote Cement plants and access restrictions affecting some depots. He noted that he had not received any official price increase notification from Dangote Cement and described some current prices as “artificial.” Conversely, John Agbezin, Public Relations Secretary of the Nigerian Institute of Quantity Surveyors, pointed to various underlying costs, including diesel, gas, foreign exchange, and insecurity, which contribute to the final price of cement.

The strong demand from major infrastructure projects further pressures available supplies, complicating cost estimations for developers and impacting property values and rents.