Rising Material Costs Disrupt Nigeria's Housing Projects

Nigeria's housing delivery is under significant pressure due to soaring building material prices, which have forced developers to slow, suspend, or redesign projects to fit tighter budgets. A 50kg bag of cement now costs between N13,500 and N15,000, with even higher prices in some areas.

The Real Estate Developers Association of Nigeria (REDAN) has warned that these material costs threaten project delivery, leading developers to cut unit sizes, adjust specifications, or phase projects. The Federation of Construction Industry (FOCI) reported that inadequate funding and delayed payments have resulted in 41,800 job losses, with lending rates for developers ranging from 20% to 46%.

High Chief Vincent Barrah, President of FOCI, and Director-General Fidelis E. Imoisili expressed concerns over the slow pace of work, attributing it to the gap between budgetary provisions and actual fund releases. Many infrastructure projects lack adequate multi-year funding, causing delays and suspensions.