Cement Prices Soar 53% Amid Tinubu’s Reforms, Stakeholders Warn of Construction Crisis

Nigeria’s construction sector is reeling from a 53% surge in cement prices, with a 50-kilogramme bag now costing up to N12,000 in some regions, up from N7,800 in March 2025. The spike, reported by industry sources, threatens to stall projects and undermine President Bola Ahmed Tinubu’s Renewed Hope housing initiative, despite earlier commitments from major cement manufacturers like Dangote and BUA to lower prices.

The price hike follows a brief period of relief in March 2025, when government engagements with manufacturers reduced cement costs from a high of N15,000 per bag in February 2024. Industry reports attribute the latest increase to rising transportation and production costs, driven by persistent logistical challenges. This comes amid broader economic reforms, including fuel subsidy removal, which have fueled inflation despite a projected GDP growth of 3.4% in 2025, according to the International Monetary Fund.

The construction industry, a key driver of economic activity, faces significant disruptions. “The price increase is a major setback,” said an industry insider quoted by Daily Post Nigeria. “Projects are being delayed, and costs are spiraling.” The surge jeopardizes the government’s housing agenda, including a 3,112-unit housing project, as developers struggle to absorb the rising costs.

Manufacturers have faced scrutiny for failing to sustain earlier price reductions. While Dangote Cement recently boosted social investments by 469.8% to N13.2 billion and launched a Farmers Empowerment Programme in Benue State, these efforts have not translated into price stability. Stakeholders are calling for renewed government intervention to stabilize the market and ensure affordable cement supply.

With inflation easing to 23.7% in April 2025 from a 2024 average of 31%, the cement price surge remains a critical challenge to Nigeria’s economic recovery. Industry leaders urge swift action to prevent further disruptions to the construction sector and the broader economy.