For millions of Nigerians hoping to build a home, every trip to the building materials market now comes with the same unpleasant surprise.
A single 50-kilogramme bag of cement—arguably the most important ingredient in construction—can cost as much as ₦15,000, depending on where it is purchased.
For many families, developers and contractors, the soaring price has turned the dream of owning a home into an increasingly expensive pursuit.
What makes the situation even more puzzling is that Nigeria is not short of cement.
In fact, the country produces far more cement than it consumes every year.
According to industry estimates, Nigeria has an installed production capacity of between 60 million and 65 million metric tonnes annually, while domestic demand is estimated at just 25 million to 30 million tonnes.
The excess is exported to neighbouring African countries.
With new factories expected to begin operations in the coming years, Nigeria’s annual production capacity could climb to 85 million tonnes.
Yet, despite this surplus, Nigerians continue to pay some of the highest cement prices on the continent.
A Bag of Cement Costs Nearly Twice as Much as in Other African Countries
Market surveys conducted across Lagos, Abuja, Abia and other major cities show that cement currently sells for between ₦12,500 and ₦15,000 per 50kg bag.
Those figures stand in sharp contrast to prices in several African nations.
In South Africa, a similar bag costs the equivalent of about ₦6,000 to ₦7,000.
In Kenya, prices hover between ₦6,500 and ₦7,500, while buyers in Ghana typically pay around ₦7,000 to ₦8,000.
Even Egypt, one of the world’s biggest cement-producing countries, records prices as low as ₦4,000 to ₦5,000 per bag.
The comparison has left many Nigerians asking one question:
Why does a country that manufactures cement on such a massive scale charge its own citizens far more than countries that produce less?
Three Companies Hold the Keys to Nigeria’s Cement Market
At the heart of Nigeria’s cement industry are three dominant manufacturers.
Dangote Cement remains the undisputed market leader, accounting for more than half of the country’s production.
The company operates major plants in Obajana, Ibese, Gboko and Okpella, with an installed capacity of over 35 million tonnes annually. Once its new Itori plant in Ogun State becomes operational, production capacity is expected to exceed 41 million tonnes.
Next is BUA Cement, whose factories in Edo and Sokoto states produce between 17 million and 20 million tonnes each year.
Completing the trio is Lafarge Africa, recently rebranded as HBM Nigeria Plc, with an annual installed capacity of about 10.5 million tonnes spread across Ogun, Gombe and Cross River states.
Together, the three companies generated more than ₦6.53 trillion in revenue in 2025.
Their combined after-tax profit reached approximately ₦1.65 trillion, representing a remarkable 142 per cent increase compared to the previous year.
For many critics, those record-breaking profits have intensified concerns that consumers may be paying more than necessary.
Manufacturers Say the Real Cost Lies Behind the Factory Gates
Cement producers reject suggestions that prices are inflated without reason.
According to industry players, manufacturing cement in Nigeria has become significantly more expensive in recent years.
Running a cement plant requires enormous amounts of energy.
Factories depend on gas, coal, diesel and alternative fuels to keep massive kilns operating around the clock.
The removal of fuel subsidies, rising diesel prices and the continued depreciation of the naira have also driven up the cost of imported machinery, spare parts, packaging materials and industrial additives.
Transporting cement presents another costly challenge.
Most factories are located far from major markets, meaning thousands of trucks travel long distances daily to move products across the country.
Industry estimates suggest transportation and logistics alone account for 30 to 40 per cent of the final retail price paid by consumers.
Manufacturers also point to inflation, high interest rates, maintenance costs and labour expenses as additional factors keeping prices elevated.
Industry operators argue that as long as demand remains strong, there is little commercial pressure to reduce prices.
Government Moves to Push Prices Down
The Federal Government has begun taking notice of the growing public frustration.
Minister of Works David Umahi recently warned that soaring cement prices are significantly increasing the cost of road construction and other public infrastructure projects.
According to the minister, the government plans to engage cement manufacturers in discussions aimed at securing lower prices.
Umahi believes cheaper cement would not only reduce the cost of government projects but also provide much-needed relief for millions of Nigerians struggling to build their own homes.
He also urged manufacturers to continue expanding production capacity to meet future infrastructure demands.
Housing Experts Warn Nigeria’s Building Crisis Could Worsen
For housing advocates, the cement debate goes beyond construction materials.
It is about Nigeria’s growing housing crisis.
Experts estimate that the country currently faces a housing deficit exceeding 16 million homes.
Every increase in cement prices raises the cost of building houses, schools, hospitals, bridges and roads, placing additional strain on developers, governments and ordinary citizens.
The President of the Real Estate Developers Association of Nigeria, Oba Akintoye Adeoye, described expensive cement as one of the biggest barriers to affordable housing.
Similarly, the Executive Director of the Housing Development Advocacy Network (HDAN), Festus Adebayo, called for urgent government intervention.
According to him, cement is too important to be left entirely to market forces if Nigeria hopes to close its housing gap.
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He urged the government to introduce targeted policies that would lower production costs, including improved electricity supply, better access to natural gas and concessionary energy support for manufacturers.
HDAN also recommended import duty waivers on essential industrial equipment and incentives for new investors willing to establish cement factories across different regions of the country.
The organisation believes increased competition would ultimately benefit consumers.
Calls Grow for More Competition and Stronger Oversight
Estate surveyor and valuer Sola Enitan believes Nigeria’s cement industry has become a victim of its own success.
According to him, while production has expanded impressively, ordinary Nigerians have seen little benefit.
He warned that record corporate profits existing alongside a worsening housing shortage present an unsustainable situation.
Enitan called on the Federal Competition and Consumer Protection Commission (FCCPC) to establish a dedicated Cement Competition Desk to monitor pricing practices and investigate potential market dominance.
He also proposed a “use-it-or-lose-it” policy for limestone quarry licences to encourage more companies to enter the industry.
Among his recommendations are mandatory publication of quarterly factory utilisation reports, regional ex-factory prices and government-issued benchmark prices that would help protect consumers from excessive retail mark-ups.
He further advocated expanding standard-gauge rail connections to major cement plants, arguing that moving products by rail instead of diesel-powered trucks would significantly reduce transportation costs.
Enitan also suggested requiring manufacturers to sell part of their production through independent distributors to encourage greater competition throughout the supply chain.
For now, however, the reality remains unchanged.
Nigeria may be producing enough cement to supply itself and export to neighbouring countries, but for the average citizen standing in a building materials market, the question persists:
If the country has more cement than it needs, why does building a home still cost so much?