Nigeria’s construction cost base has undergone a structural reset.

A 50kg bag of cement has increased from ₦2,500 in 2019 to as high as ₦11,500 – ₦15,000 in 2026.

This shift is already altering project viability, pricing models, and investment outcomes across the real estate sector.

This is not a short-term fluctuation.

It is a structural change in the economics of building.

Projects are being delayed or abandoned as cost assumptions fail.

Developers are reworking budgets mid-execution.

New supply is slowing, while rental pressure continues to build across major urban markets.

This is no longer simply a construction issue.

It is a market restructuring moment.

Which brings us to the underlying dynamic…

Nigeria’s cement market is highly concentrated.

Three producers control over 95% of domestic supply and generated ₦6.55 trillion in revenue in the last financial year — operating with margins significantly above global benchmarks.

At the same time, the construction sector recorded 11,856 abandoned projects.

This is not purely a cost-driven environment.

It is a function of market structure.

And for developers, investors, and advisors, that distinction is critical.

Because it shapes how projects are underwritten, how risk is priced, and where returns can realistically be achieved.

This report addresses key questions facing market participants:

1. Where are construction costs heading from here?
2. What is driving cement prices beyond standard cost explanations?
3. How are developers adjusting to sustained cost pressure?
4. What does this mean for project feasibility, pricing, and yield?
5. Where are the credible investment signals in the current market?

Note: This report is for

• Developers managing project cost exposure and delivery risk
• Investors evaluating pricing, yield, and entry timing
• Brokers and advisors requiring structured, data-backed market insight