- Nigeria’s headline inflation rose to 32.70% in September 2024, contributing to the surge in construction material costs
- Cement prices doubled from N4,000 to N8,800 per bag, while iron rods and blocks saw similar price hikes
- Building material suppliers reported struggling with depleted capital and reduced stock due to unpredictable market forces
According to a recent report, building material prices have skyrocketed by approximately 100 per cent, fueled by soaring inflation and energy supply challenges.
Speaking at the launch of Cello Luxury Apartment 1 in Lekki, Lagos, Damilola Adeniran, Senior Investment Adviser for Leadroitt Realty Limited, noted that the sharp increase in building material prices has significantly escalated the expenses involved in meeting project deadlines.
Cement prices rise to N8,800 per bag
“The price of building an apartment in the country has increased significantly compared to three to five years ago. FX instability for materials denominated in dollars is affecting the industry,” Adeniran stated.
According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate for September 2024 was recorded at 32.70 per cent, marking a 0.55 per cent increase from 32.15 per cent in August.
The price of cement has soared from N4,000 to N8,800 per bag, marking a 100 per cent increase.
Other building materials prices surge
Iron rods, in the 10mm to 16mm range, that were N800,000 per ton in 2023, are now priced at N1,600,000 per ton or more, depending on the supplier.
Blocks, which cost N250 each last year, now range from N550 to N600, depending on their size according to reports.
Similarly, the price of paints has risen, with a large rubber that previously cost between N23,000 and N25,000 now priced between N46,000 and N50,000.
Building material suppliers report depleted capital, others
The current surge in building material costs is having a profound effect on the property sector, hindering efforts to provide affordable housing.
Many construction projects have been delayed or put on hold indefinitely as developers reassess their budgets and financing options amid the situation.
Also, suppliers of building materials have reported that their capital has been drained, and their stock has diminished in stores due to unpredictable market forces.
Treasurers urge FG to adopt alternative strategies to curb inflation
Meanwhile, TheRadar earlier reported that treasurers under the aegis of the Association of Corporate Treasurers of Nigeria called on the Federal Government to adopt alternative strategies to tackle inflation other than further hikes of the interest rate.
Their calls re-echoed the stance of analysts and economists on interest rate hikes.