New Tax Regime Puts Fresh Pressure On Cement Prices, Housing Costs
Stakeholders in Nigeria’s construction and real estate sectors have raised concerns that a new tax regime could increase cement prices and worsen the country’s housing affordability crisis.
Under the revised framework, manufacturers and importers are expected to face additional levies and compliance costs, which industry players warn may be passed on to consumers. Cement, a key input in construction, is already considered expensive relative to average incomes.
Developers say higher material costs will translate into more expensive housing units, making home ownership even less accessible for low and middle income earners. The country is estimated to face a housing deficit running into millions of units, and experts fear that rising costs could slow efforts to bridge the gap.
Manufacturers, on their part, argue that while government needs revenue, policy makers must balance fiscal objectives with the impact on critical sectors. They say sudden increases in taxes and charges can disrupt planning, reduce production and discourage investment.
Economists note that construction is a major driver of employment and economic activity. Any slowdown linked to higher costs could have ripple effects across related industries such as steel, transport and building services.
Housing advocates are urging government to consider targeted incentives, waivers or subsidies for affordable housing projects to cushion the impact. They warn that without supportive measures, the new tax environment may deepen inequality in access to shelter.
- Officials have yet to indicate whether there will be adjustments, but discussions are ongoing as stakeholders push for a review of the most burdensome provisions.
