…Demands tax relief and a 100-day emergency plan
The Housing Development Advocacy Network (HDAN) has called on the National Assembly and the Federal Government to take urgent legislative and policy action to bring down the cost of building materials in Nigeria.
HDAN in a statement “Reducing the High Cost of Building Materials in Nigeria and Across Africa,” warned that high construction costs are worsening the housing affordability crisis, discouraging investment and squeezing millions of households. It blamed expensive energy and transport, foreign exchange pressures, high financing costs, weak industrial infrastructure, import dependence and possible competition concerns.
HDAN Executive Director Festus Adebayo called the issue a national economic challenge. “Housing affordability cannot be achieved through speeches, promises and ambitious housing targets alone,” he said. “When cement, iron rods, roofing sheets and other construction inputs become increasingly expensive, the dream of homeownership moves further away from millions of Nigerians.”
The group asked the relevant Senate and House committees to hold an investigation and public hearing with manufacturers, the Federal Competition and Consumer Protection Commission (FCCPC), the Standards Organisation of Nigeria, developers and financial institutions.
The statement cited an August 2026 FCCPC disclosure that Nigeria’s installed cement capacity is an estimated 60–65 million tonnes a year, against domestic demand of 25–30 million tonnes. HDAN noted that installed capacity is not the same as actual output, but said the gap calls for a close look at costs, distribution, competition and pricing. It urged an independent review of the cement and steel markets that respects manufacturers’ legitimate costs.
“Nigerians deserve transparent answers,” Adebayo said. “The National Assembly must help establish whether the problem lies in production costs, distribution, market competition, taxation or a combination of these factors.”
HDAN proposed six reforms:
A review of taxes and tariffs on building materials, with time-bound relief whose savings reach builders and buyers
Lower industrial energy and transport costs, including an end to illegal road levies
Building materials manufacturing hubs in all six geopolitical zones, with transparent targets and public reporting
Affordable long-term finance for local manufacturers through development finance institutions
More investment in tested and certified indigenous materials, without compromising safety
A national price-monitoring system covering factory, wholesale and delivered prices
It also proposed a 100-day national action programme to assess construction costs, review tax incentives and competition concerns, and track progress on the manufacturing hubs. It recommended a National Building Materials Affordability and Local Manufacturing Compact bringing together governments, manufacturers, lenders and consumers, backed by regular legislative oversight.
Adebayo warned that incentives to manufacturers must deliver public benefit. “We cannot continue to provide concessions without establishing whether they translate into reduced construction costs, increased production, more jobs and more affordable housing,” he said.
The report reviewed experiences in Ghana, Rwanda, Kenya, South Africa and Tanzania. It urged cooperation under the African Continental Free Trade Area and partnerships with manufacturers from China, India, Türkiye and elsewhere, focused on technology transfer and local jobs.
“The ultimate objective must not simply be cheaper cement or cheaper iron rods,” Adebayo said. “It must be cheaper, safer and more accessible housing for Nigerians.”
