Nigeria’s housing sector is coming under renewed pressure as escalating cement prices begin to stall construction projects and trigger sharp increases in rental costs across major cities, the Real Estate Developers Association of Nigeria (REDAN) has warned.

The association said the persistent rise in cement prices is fast undermining housing delivery, forcing developers to delay or scale down projects, with the ripple effects now being felt by renters nationwide.

Speaking during a joint briefing with the Centre for Housing and Sustainable Development (CHSD) in Lagos, REDAN President, Oba Akintoye Adeoye, described the situation as a growing threat to both ongoing and planned housing developments.

According to him, cement prices have climbed steeply within a short period, worsening the cost burden on developers and investors.

Industry data show that a 50kg bag of cement, which sold for about ₦7,500 in late 2025, increased to between ₦9,000 and ₦10,000 at the start of 2026, and has now surged further to between ₦11,500 and ₦15,000 in many parts of the country.

Adeoye noted that such a rapid increase has significantly distorted construction cost structures, given the central role cement plays in building projects.

“The implication is that developers are now grappling with rising financial strain, which is already slowing project execution and, in some cases, leading to outright suspension,” he said.

Beyond developers, the impact is also cascading to tenants, as rising construction costs translate into higher rents.

Professor Timothy Nubi, founding director of CHSD, said rental prices have risen sharply in response to the surge in building material costs.

He cited Abuja, where annual rent for a self-contained apartment now ranges between ₦800,000 and ₦1.5 million, compared to about ₦400,000 previously.

In Lagos, similar apartments now go for between ₦800,000 and ₦1 million annually, also nearly double earlier rates, while cities such as Kano and Port Harcourt are experiencing comparable increases.

Nubi explained that cement alone constitutes a significant portion of construction inputs, with a standard two-bedroom bungalow requiring hundreds of bags, thereby amplifying the cost impact.

He added that the surge is not limited to cement, as other materials have also recorded notable increases steel prices have risen by about 20 percent, sharp sand by 25 percent, while wood and granite have also trended upward.

Stakeholders warned that the combined effect of these increases is deepening Nigeria’s housing deficit, as affordability continues to weaken for prospective homeowners.

They also expressed concern over potential compromises in building quality, noting that excessive cost pressures could push some developers toward substandard materials.

To address the situation, REDAN called on the Federal Ministry of Housing and Urban Development and other relevant agencies to urgently intervene by engaging players across the building materials value chain.

The association also urged manufacturers to collaborate with government and industry stakeholders to stabilize prices and sustain housing delivery.