A housing-sector advocacy and research organisation committed to promoting affordable housing has urged the National Assembly and the federal government to act urgently to curb rising building and construction costs.
The organization, known as Housing Development Advocacy Network (HDAN), is also seeking manufacturing reforms, tax relief and a 100-day emergency action plan to address rising construction costs.
An advocate for sustainable urban development, improved housing finance, responsible real estate practices, and evidence-based housing policies in Nigeria and across Africa, HDAN notes that rising construction costs are worsening the country’s housing affordability crisis.
‘The rising costs are also frustrating homeownership aspirations, discouraging investment and placing additional financial pressure on millions of Nigerian households,’ the Research and Economic Development Unit of the organization stated.
This was contained in the research report titled, ‘Reducing the High Cost of Building Materials in Nigeria and Across Africa: Towards Affordable Housing, Stronger Local Manufacturing and Sustainable Construction.’
The report listed expensive energy, transportation costs, foreign exchange rate pressures, high financing costs, inadequate industrial infrastructure, import dependence and possible market competition concerns as major factors driving construction costs.
It stressed that Nigeria cannot realistically bridge its housing deficit or deliver affordable homes at scale without addressing the prices of cement, reinforcement steel, roofing sheets, tiles, glass, electrical fittings, plumbing materials and other essential building products.
Festus Adebayo, HDAN’s Executive Director, described the rising cost of building materials as a national economic challenge that requires deliberate legislative and executive action.
‘Housing affordability cannot be achieved through speeches, promises and ambitious housing targets alone. The cost of building materials must become a major national policy priority. When cement, iron rods, roofing sheets and other construction inputs become increasingly expensive, the dream of homeownership moves further away from millions of Nigerians,’ Adebayo stated.
He stressed that reducing building costs should be treated not merely as a housing-sector intervention but as an economic development strategy capable of stimulating industrial production, creating employment, attracting investment and improving living conditions.
HDAN explains need for urgent National Assembly intervention
HDAN says there is a need for the relevant committees of both the Senate and House of Representatives responsible for housing, industry, trade, finance and economic development to initiate a parliamentary investigation and national public hearing on the high cost of building materials.
The organisation has recommended that the engagement should involve cement and steel manufacturers, the Federal Competition and Consumer Protection Commission (FCCPC), the Standards Organisation of Nigeria (SON), relevant federal ministries, real estate developers, building professionals, financial institutions and representatives of housing consumers.
According to the report, the FCCPC disclosed in August 2026 that Nigeria had an estimated installed cement production capacity of 60-65 million metric tonnes annually, compared with estimated domestic consumption of 25-30 million tonnes.
It noted that although installed production capacity does not necessarily represent actual output or market supply, the figures underscore the importance of examining production efficiency, operating costs, distribution arrangements, competition and pricing practices.
HDAN, therefore, called for an independent, evidence-based assessment of the cement and steel markets, with due regard for legitimate production expenses and the rights of manufacturers.
‘We must ask a fundamental question: Why should a country with considerable local cement manufacturing capacity continue to experience serious concerns about cement affordability? Nigerians deserve answers. The National Assembly must help establish whether the problem lies in production costs, distribution, market competition, taxation or a combination of these factors,’ Adebayo said.
Six major reforms proposed by HDAN
The research report identified six broad areas requiring government intervention.
First, a comprehensive review of taxes and tariffs affecting essential building materials. HDAN called for targeted and time-bound relief on critical manufacturing inputs and selected products with inadequate domestic supply, supported by mechanisms to ensure that savings reach builders and homebuyers.
Second, urgent intervention in industrial energy and transportation costs. Government should improve electricity and gas availability for manufacturers, strengthen logistics infrastructure and work with state governments to eliminate illegal road levies and unnecessary distribution barriers.
Third, accelerated development of building materials manufacturing hubs across Nigeria’s six geopolitical zones. HDAN welcomed the existing Federal Government initiative but demanded transparent implementation, measurable investment targets and regular public reporting.
Fourth, affordable long-term financing for local manufacturers. The organisation proposed dedicated financing arrangements through appropriate development finance institutions to support the production of roofing materials, steel components, ceramics, glass, sanitary fittings and alternative building products.
Fifth, greater investment in innovative and indigenous building materials. HDAN recommended increased research, testing, certification and commercialisation of appropriate local materials, including stabilised earth blocks, laterite-based products, prefabricated components and other cost-efficient construction technologies, without compromising building safety.
Sixth, a national building materials price monitoring system. The proposed system would track factory, wholesale and delivered prices of major construction materials across the country, improving transparency and helping policymakers identify abnormal market developments.
Nigeria Must Learn from Other African Countries
HDAN further urged African governments to strengthen cooperation in building materials production, research, industrial financing and regional trade.
The report examined experiences in Ghana, Rwanda, Kenya, South Africa and Tanzania, highlighting policy lessons in market transparency, indigenous materials development, industrial financing, construction cost monitoring and affordable housing delivery.
The organisation encouraged greater cooperation under the African Continental Free Trade Area to facilitate access to certified construction materials, production equipment, manufacturing technology and regional markets.
HDAN also called for stronger partnerships with manufacturers from China, India, Trkiye and other industrial economies willing to establish production and assembly facilities in Nigeria and other African countries.
According to the organisation, the focus should be on technology transfer, local employment, industrial capacity and sustainable reductions in construction costs rather than excessive dependence on imported finished products.