A new housing market report has warned that Nigeria’s heavy reliance on imported building materials is putting the housing sector at serious risk.
The State of Lagos Housing Market Report said the country depends on imports for about 70 per cent of its building materials. It warned that this exposes the market to global supply disruptions and foreign exchange shocks.
The report noted that although Nigeria has abundant raw materials, weak local processing capacity has made it difficult to reduce dependence on imported products.
It recommended stronger local production through manufacturing hubs and incentives, better supply chains, consistent policies and increased investment. The report said these steps are needed to stabilise prices and reduce Nigeria’s housing deficit.
It said Lagos remains the centre of Nigeria’s construction and real estate activities, and trends in the state often reflect what happens nationally.
According to the report, Nigeria’s construction sector is projected to grow by eight per cent annually and could reach N25.72 trillion by 2025. It said the industry recorded a compound annual growth rate of 12.1 per cent between 2020 and 2024 and may grow by 6.4 per cent between 2025 and 2029, reaching N35.38 trillion by 2029.
The report said rapid urbanisation, population growth and expanding infrastructure projects in Lagos are driving demand for housing and commercial property.
It warned that rising material costs, inflation, supply chain problems, bureaucracy and high financing costs are slowing progress in the housing sector.
The report stated that construction growth is being driven more by rising prices than by actual expansion in building activity. It said affordability and supply problems are being masked by the increasing monetary value of projects.
It added that Lagos feels the impact of inflation, currency depreciation and supply chain inefficiencies more sharply than other parts of the country.
The report said fixing the building materials market in Lagos could serve as a model for broader national reforms.
The report also highlighted a sharp rise in the prices of essential building materials over the last decade.
In 2015, an 8mm local iron rod cost N87,000 per 133 units, while the imported version sold for N102,000. A 12mm local rod sold for N98,000 per 93 units, while the imported version was priced at N152,000.
By 2023, iron rods were selling at about N800,000 per tonne. Between May 2023 and May 2024, the price of a 12mm iron rod rose from N8,000 to N19,000, while a 16mm rod increased from N4,800 to N11,500.
By 2024, iron rods were selling at N1.6 million per tonne or more. The report said prices of iron rods and aluminium products have continued to rise into 2025.
The report was published by the Roland Igbinoba Real Foundation for Housing and Urban Development. Earlier editions were published in 2009 and 2016.
