Rising Cement Costs Drive Up Rent in Nigeria's Housing Crisis

The housing industry in Nigeria faces significant crises, particularly due to high costs of cement and building materials, which are driving up rents. The housing deficit, previously estimated at 28 million units, is believed to be even higher now due to factors such as insurgency, insecurity, and natural disasters.

The Minister has announced plans to obtain comprehensive housing data to better analyze the situation. Infrastructure development is also contributing to rising rents, as landlords often increase rents in response to improved infrastructure.

The costs of construction materials have surged dramatically; for instance, cement prices have risen from around N7,500 to about N13,000, while transportation costs have doubled. The article suggests that the government should reduce taxes on building materials and provide incentives for manufacturers like Dangote, BUA, and Mangal to help lower production costs.

Without intervention, the housing crisis may worsen, leading to more people losing homes and fewer new houses being built.