Nigeria’s Construction Costs Surge, Putting Pressure on Housing Affordability
Nigeria: Nigeria’s real estate and construction sectors are facing severe cost pressures, with building material prices rising by up to 440% between 2019 and 2026. Iron rod prices increased by 410%, cement by 367% and blocks by 275%, driven by currency depreciation, higher production costs, logistics expenses and import dependence. Around 60–80% of finishing materials, including tiles and sanitary ware, are imported, increasing exposure to foreign exchange fluctuations and grey-market supply. Rising material costs, combined with Nigeria’s housing deficit, are making affordable housing increasingly difficult to deliver. Developers are also facing difficulties in maintaining project budgets, with some forced to renegotiate contracts during construction as material prices remain volatile.
Source: Tribune Online
