Rising Cement Prices Drive Surge in Nigerian House Rents

Experts have identified the high price of cement and weak mortgage systems as key contributors to the rising house rents in Nigeria. Despite discussions around removing VAT on land and building rent, they argue that deeper structural challenges must be addressed to combat the ongoing housing crisis.

The Chairman of the Presidential Fiscal Policy Tax Reform Committee clarified that VAT is already exempt for land and building rent, and a proposed 25% tax on building materials was dismissed by Oyedel. The report highlights that rental costs in major cities like Abuja, Lagos, Kano, Enugu, and Port Harcourt have sharply increased, with Abuja seeing a 100% rise in annual rent for a one-bedroom apartment, climbing from ₦1.5 million to ₦2 million.

This surge in rental prices often exceeds the annual earnings of workers earning Nigeria's minimum wage of ₦70,000. The Nigerian Bureau of Statistics reported that, although inflation has dropped to 15% from 10% in January 2026, the cost of living remains high, exacerbated by rising construction costs and a housing deficit that limits access to financing.