Cement hits N8,800 as cost of building materials skyrockets

High cost of building materials in the country is currently affecting activities in the property sector, posing a huge challenge to the government’s quest for affordable housing.

It has also affected private property developers as many of them have slowed down on construction, while individuals craving to build their houses through direct labour are also complaining.

Also, suppliers of building materials said their capitals have depleted and wares shrank in shops and stores due to uncertain market forces.

Market survey by Daily Trust revealed that prices of building materials have increased astronomically by about 100 per cent amidst rising inflation and inadequate energy supply.

The situation has caused disruptions in the construction industry, posing significant challenges to large-scale developers and homeowners.

This is attributed to a combination of factors, including disruptions in the supply chain, escalating labour cost and wholesalers raising prices compared to factory rates.

According to the National Bureau of Statistics, (NBS), Nigeria’s headline inflation rate in September 2024 rose to 32.70 per cent, up from 32.15 per cent in August 2024, marking a 0.55 per cent increase month-on-month.

The NBS added that inflation during the month was propelled by increases in transportation costs and food prices.

Also, the urban inflation rate in September 2024 was 2.67 per cent, reflecting a 0.28 percentage point increase compared to 2.39 per cent in August 2024; while the rural inflation rate stood at 2.39 per cent in September 2024, up by 0.33 percentage points from 2.06 per cent recorded in August 2024.

As a result of this inflationary pressure, there has been a slowdown in construction activities as developers struggle with the financial implications of soaring materials’ costs.

Many projects have been delayed or put on hold indefinitely as developers reassess their budgets and financing options in light of the unprecedented circumstances.

A data from the Shelta Afrique Development Bank indicates that Nigeria’s housing deficit stands at about 27 million, which is about 40 per cent of the entire continent’s deficit.

Investigations by Daily Trust have shown that the prices of building materials have hit the rooftop, amounting to over 100 per cent hike in the last 1 year.

Cement prices surged from N4,000 to N8,800 per bag, representing a 100 per cent increase.

Blocks, which were selling for N250 each, last year, are now between N550 and N600 depending on the size.

Iron rods, which range from 10mm to 16mm, which cost N800,000 per ton in 2023, are now N1,600,000 per ton or more, depending on the company.

The cost of paints has also gone up as a big rubber, which hitherto cost between N23,000 and N25,000, is now between N46,000 and N50,000.

Most of the civil servants and other citizens interviewed said the situation is dashing their hope of owning their houses.