Real Estate Developers Raise Alarm As Surging Prices Stall Projects, Push Up Rents

In recent months, Nigeria’s real estate and construction sectors have been hit by a sharp surge in the cost of key building materials, most notably cement.

The Real Estate Developers Association of Nigeria (REDAN) has raised alarm over the trend, warning that the persistent increases are undermining housing delivery and infrastructure projects nationwide.

Speaking at a joint press conference with the Centre for Housing and Sustainable Development (CHSD) in Lagos, REDAN President Oba Akintoye Adeoye revealed that the price of a 50kg bag of cement has jumped more than 30 percent in six months.

“Industry data show that cement, which sold for about ₦7,500 in late 2025, rose to ₦9,000–₦10,000 at the start of 2026. Today, prices range between ₦11,500 and ₦15,000 across the country,” Adeoye said, stressing that the escalation is squeezing developers and investors alike.

The ripple effect is evident in housing costs. Professor Timothy Nubi, CHSD’s founding director, noted that rents have doubled in major cities. In Abuja, a self-contained apartment now costs ₦800,000–₦1.5 million annually, up from ₦400,000. Lagos, Kano, and Port Harcourt are experiencing similar spikes.

Nubi explained that a modest two-bedroom bungalow requires hundreds of bags of cement, meaning construction costs are soaring. Adeoye added that iron rods, sand, and other inputs have also risen steeply, compounding the financial strain.

Developers warn that the combined effect is leading to project delays, scaled-down housing schemes, and in some cases, outright abandonment. Consumers, meanwhile, face mounting rent pressures as landlords pass on the higher costs.