The Rising Cost of Building Materials in Africa - March 2025 Report

Published: March 20, 2025
Zellow Insights / Category: Price

"Every time we think we're ready to start building, cement has added ₦1,000."
- Anonymous respondent, aspiring homeowner in Ibadan.

Overview

In a continent rapidly urbanizing and filled with housing deficits, building a house is both a dream and a burden for many. But in 2025, that dream is being crushed under the weight of rising material costs, especially cement and iron rods, the two most essential components of construction.

A total of 1,500 builders, contractors, and everyday homeowners across Nigeria, Ghana, and Kenya shared updated prices they’ve paid for cement, iron rods, and related building materials as well as the emotional and financial toll of those rising costs.

Key Findings

• Cement prices in Nigeria have risen by over 45% in 12 months, with the average 50kg bag selling at ₦7,800.

• Iron rods (12mm) cost between ₦7,500–₦9,000 per length, depending on region and dealer.

• 55% of survey participants say they’ve had to pause or slow down building projects due to material price hikes.

• Imported materials and dollar fluctuations are major price drivers, even for locally produced goods.

Current Prices of Key Construction Materials (March 2025)

Insight: There’s no such thing as a “standard” price. Materials can differ by up to 30% within the same country, depending on transportation costs and supply-chain issues.

What’s Driving Prices Up?

1. Exchange rate instability: Even locally made cement depends on imported equipment and fuel.

2. Fuel & logistics costs: The removal of fuel subsidies in Nigeria and increased diesel prices have inflated haulage fees.

3. High demand vs low supply: With limited cement producers in most countries, price control is difficult.

4. Seasonal fluctuations: Rainy seasons often see material scarcity, raising prices temporarily.

“From ₦5,000 to ₦7,800 in just a year. That's ₦2.8 million more on a 3-bedroom foundation.” - Anonymous respondent, builder in Osun

Impact on Everyday Builders

• Delayed Projects: Over half of survey respondents say they’ve stopped construction halfway due to cost hikes.

• Project Rescoping: Some have reduced from duplexes to bungalows to manage budgets.

• Alternative Materials: A small percentage (11%) are now considering interlocking blocks or compressed earth bricks to reduce cement usage.

“We’ve moved from building every weekend to once a month. Money no dey flow like that anymore.” - Anonymous respondent, Port Harcourt

Price vs Quality Dilemma

One dangerous trend uncovered by Zellow respondents: to cope with high prices, some builders now buy cheaper, lower-grade iron rods or dilute cement mixes, potentially compromising structural integrity.

“I almost bought fake rods because they were ₦1,000 cheaper per piece. If not for the engineer...” - Anonymous respondent, Enugu

The Bigger Picture

The rising cost of building materials doesn't just affect individuals. It stifles the real estate market, increases rent prices, and widens the housing gap.

Africa already faces a deficit of over 50 million housing units across key countries. If construction becomes unaffordable for average earners, the crisis deepens.

Build with Knowledge, Not Guesswork

Zellow is helping builders, families, and professionals track the real cost of building in real time, from cement to roofing sheets. With collective data from actual buyers, you can budget more accurately and avoid costly surprises.

Submit your last material price inside the Zellow App and help other builders price smarter.