Nigeria’s Inflation and Construction Costs Reach New Highs with Cement Price Increase.
Nigeria’s Inflation and Construction Costs Reach New Highs with Cement Price Increase.
In January 2026, Nigerians are facing another wave of economic hardship as cement prices have surged significantly. The cost of a 50-kilogram bag of cement, including brands like Dangote and Mangal, has risen to N10,500 from approximately N9,800 in December 2025, representing a 7.1% increase or N1,000 more per bag. This hike has been reported across various regions, including Abuja, Nassarawa, and Niger, despite Nigeria’s abundant natural resources for cement production in states such as Kogi and Edo.
The escalation comes despite previous assurances from industry stakeholders that cement prices would stay below N7,000 per bag. The increase is already impacting the housing market, with minimum rent for self-contained apartments soaring by over 100%, reaching N800,000 annually from about N400,000, especially in urban centers like Abuja and Lagos. The Nigerian government, however, has yet to address or intervene in the rising cost of rent and living expenses, even as inflation hit 15.15% in December 2025, up from 14.45%.
Former President of the Real Estate Developers Association of Nigeria (REDAN), Alhaji Aliyu Oroji Wamakko, expressed concern over the rising cement prices, warning that this trend threatens property development, employment, and affordability. Wamakko noted that the increase could lead to higher construction costs, pushing property prices upward and potentially forcing many construction-related businesses to shut down.
He recalled that cement companies like Dangote and BUA had previously promised to reduce prices after initial hikes, but recent increases remain unexplained. Wamakko criticized the apparent inactivity of the Price Control Board and attributed the surge to factors such as increased demand from ongoing infrastructure projects, currency fluctuations, and Nigeria’s dependence on imported chemicals required for cement manufacturing. He called for a comprehensive review of the cement industry’s pricing system to address these challenges and prevent further economic strain on Nigerians.
