Cement prices near N12,000 as 3 manufacturers rake N6trn in 2025
There is mounting concern in the property and construction sector over the rising prices of cement across the country. Daily Trust findings show that cement, a critical component of every property construction has been on the rise since the second half of 2025, increasing by over 30 per cent The resultant effect stakeholders say could […]
Cement prices near N12,000 as 3 manufacturers rake N6trn in 2025
There is mounting concern in the property and construction sector over the rising prices of cement across the country.
Daily Trust findings show that cement, a critical component of every property construction has been on the rise since the second half of 2025, increasing by over 30 per cent
The resultant effect stakeholders say could lead to abandonment of projects, high cost of rent as well as property purchase.
Daily Trust reported last month how prices of cement had climbed to between N10,800 to N11, 000
However, two weeks after, the situation has gotten worse as cement now sell between N11,500 to N11,800 depending on the location
Cement price rise by 30 per cent
Further checks by Daily Trust show that the prices of cement have risen by over 30 per cent between the last quarter of 2025 and now.
Depending on the location, a 50- kilogramme(kg) bag of cement, which used to cost N7,500 in the last quarter of 2025, is now goes for between N11,200, N11,500 and N11,800 in the market.
A market survey across building material markets in Jabi, Karu, Area 1, Utako among othets show that cement was not selling below N11, 500 in those markets
This has raised concerns about Nigeria’s quest for affordable housing as well as the need for government intervention.
Nigeria currently has a deficit of about 28 million houses with a population of over 200 million people.
Although government have rolled out some key housibg initiatives, industry experts say the impact is yet b to be felt by Nigerians.
Amidst concerns, manufacturers rake N6trn revenue
Meanwhile, further analysis show that Nigeria’s three major cement manufacturing companies in Nigeria raked a massive N6.55 trillion revenue in the 2025 financial year.
The figure represents about 27 per cent increase of over N5.15 trillion declared in the previous year of 2024.
Nigeria’s major cement manufacturing companies include Dangote Cement Plc, Lafarge Africa Plc and BUA Cement Plc.
Analysis of their audited result and accounts for the full year ended December 2025 showed that this 3 companies grew revenue massively, which rubbed off positively on profit and dividend payout to shareholders.
This coming amidst Nigeria’s housing deficit which keeps expanding as a result of rapid urbanisation, population growth, and low penetration of mortgage programmes.
It is estimated that Nigeria and other African countries are faced with a deficit of at least 51 million housing units and by 2030, this deficit is projected to reach 130 million housing units,
A breakdown of the financials of these companies show that in the period under review, Dangote Cement had the highest profit turnover, followed by BUA Cement and Lafarge
Dangote Cement reported N4.31trillion revenue, about 20.28 per cent increase over M3.58 trillion reported in 2024, while BUA Cement announced N1.18 trillion revenue in 2025, up by 35 per cent from N876.5 billion reported in 2024.
For Lafarge Africa, it reported N1.07 trillion revenue, a growth of 53.04 per cent from N696.77 billion in 2024.
The growth in revenue is on the backdrop of expansion and hike in cement products, most especially in Nigeria.
Situation troubling – Developers, experts
Commenting on the situation, President of the Real Estate Developers Association of Nigeria (REDAN), Oba Akintoye Adeoye described the situation as ‘troubling’ noting that the increase in the prices of essential building materials should be handled as an emergency.
According to Oba Adeoye, escalating cement prices threatened affordable housing delivery, adding that the situation has become worrisome, considering the fact that Nigeria is already confronted with a significant housing deficit.
He said that the price of a 50kg bag of cement, which sold for about N7,500 in the last quarter of 2025, rose to between N9,000 and N10,000 at the beginning of 2026.
Unfortunately, he said the price has continued to climb and is now selling between N11,500 and N15,000 in several parts of the country.
The sharp increase within such a short period, Oba Adeoye said has placed enormous pressure on developers and investors in the housing sector.
“Cement remains one of the most critical inputs in construction, accounting for a significant proportion of the overall cost of building houses. When the price of cement rises, the entire cost structure of housing development is affected,” he said.
In addition to cement, he noted that the cost of other construction inputs, such as iron rods and sand has also increased considerably.
“The combined effect of these rising costs is that developers are now facing serious financial pressures, which are already leading to delays in project delivery, scaling down of housing developments, and in some cases the suspension or abandonment of projects.
“This situation is particularly worrisome when we consider the fact that Nigeria is already confronted with a significant housing deficit.
“Any development that further increases the cost of building houses will ultimately make homeownership even more difficult for millions of Nigerians,” REDAN president said.
He called on the Federal Ministry of Housing and Urban Development and other relevant government institutions to urgently engage stakeholders in the building materials value chain with the aim of stabilizing the prices of cement and other essential construction materials.
Also speaking, ESV Olufemi Oyedele described the current cement price hike as unfortunate, noting that the Federal Government cannot tackle the rising cost of building materials because subsidies on building materials are not populist programs.
He rather stated that “What the Federal Government can do is to instigate the adoption of cheaper building materials.
“We have abundant clay in Nigeria. Bricks are made from clay. We also have plenty “shale” in Kogi State. Shale can be sawn into blocks for house construction. We have saw-dusts that can be made into particle boards for house construction.
The particle board wall can be finished with clay tiles. Clay roofing slates are not only durable and beautiful, they are also cheaper than aluminum roofing sheets. We have opportunities to record housing surplus in Nigeria but for lack of interest in research and development findings,” he added.