Nigeria Building Cost News Roundup — October 4 to 10, 2026

The short version: this week brought a lot of noise and only a few real changes. Diesel went down and then back up within three days. The Central Bank's big rate cut has still not reached most borrowers. The naira and cement prices barely moved. The biggest new figure came from housing: the Federal Government says more than 100,000 Nigerians have shown interest in its Renewed Hope Cities homes. Below we explain what each story means if you are building, buying materials or financing a project. (Missed the last edition? Read the roundup for September 20 to October 3.)

1. Diesel: ₦1,780, Then ₦1,700, Then ₦1,800 in Ten Days

Last week we reported that Dangote Petroleum Refinery had cut its diesel gantry price to ₦1,780 per litre from 1 October. It did not stay there for long:

The 7 October cut followed a sharp fall in the cost of importing diesel. Figures from the Major Energies Marketers Association of Nigeria showed the estimated landing cost dropping from ₦1,823.68 a litre on 30 September to ₦1,696.40 on 2 October, as crude oil prices weakened (Legit.ng). Three days later, with crude rising again, the refinery added ₦100 to bring the price to ₦1,800. It asked customers to resubmit their truck call-ups so they could be repriced. Depot prices around Lagos ranged from about ₦1,720 to ₦2,000 a litre after the increase (Legit.ng, Naija News).

What this means for your budget: after all that movement, diesel ends the week ₦20 a litre higher than where it started in October and ₦50 lower than in late September. In other words, it has hardly changed. The bigger lesson is how fast gantry prices now move. They follow crude oil and import costs almost day by day, while haulage rates, block prices and generator hire move slowly and mostly upward. If a supplier adds a "fuel surcharge" this month, ask which diesel price it is based on. Remember that the cut on 7 October was reversed only partly. For your own site costs, such as a mixer for a slab pour, a pumping machine or a generator for welding, we still suggest pricing diesel at about ₦1,800 a litre. Add a 10% buffer if the work is more than a month away. Our Mobilisation Calculator and Preliminaries Calculator both have plant and power lines you can edit.

2. Banks Still Have Not Passed On the 3.5-Point Rate Cut

It is now almost three weeks since the Monetary Policy Committee cut the benchmark rate from 26.5% to 23%. Borrowers are still waiting for most of the benefit. A Nairametrics check a week after the decision found that banks had not lowered their lending rates. Rates across the banking sector still ranged from about 20% to as high as 46%, depending on the customer's risk profile and the bank (Nairametrics). The Manufacturers Association of Nigeria warned that prime lending rates could stay around 27% to 30% even after the cut. It said riskier borrowers could still be charged 50–60% (Nigeria Housing Market).

A report on 9 October explained part of the reason. The Cash Reserve Ratio is still 45%, which means banks must hold almost half of their deposits at the Central Bank without earning interest on them. Economist Professor Ken Ife said that "if 45 per cent of a bank's funds are held without earning interest, the bank must increase lending rates to around 35 per cent to achieve a 20 per cent profitability target" (Parrot Nigeria). The CBN has also said the cut was mainly meant to realign its benchmark with market rates, because interbank rates were already around 22%. It did not present the cut as a broad loosening of policy (Blueprint).

What this means for your budget: if you are counting on a cheaper loan to finish your build, do not assume your rate has changed. Get a written quote. If your rate has not moved, ask your bank when it plans to review it. When you compare offers, compare the full cost, including management fees, insurance and any equity contribution, and not only the headline rate. Our Mortgage Calculator shows how much a few percentage points change your monthly repayment. If you are paying from income in stages, our Cash Flow Calculator helps you match each payment to the stage of the build. If borrowing still costs 30% or more, building in phases from savings may be cheaper than one large loan. Our recent deep-dive on building a house in stages shows how to plan it.

3. The Naira Holds Near ₦1,330

The naira had another quiet week. On Friday, 9 October, the dollar traded at about ₦1,329.34 in the official market (NFEM) and closed at ₦1,332.49. Early October trading stayed within a range of ₦1,327 to ₦1,332. In the parallel market, the dollar was about ₦1,375 to buy and ₦1,385–₦1,390 to sell (Techeconomy, The Telegraph). That is almost the same as a week ago, when the official rate was ₦1,328 and the parallel rate ₦1,390. External reserves remain above $54 billion, the highest level in about 18 years.

What this means for your budget: this is now the third roundup in a row with the naira steady around ₦1,330. That is good news for anything imported or priced in dollars, such as tiles, sanitary ware, aluminium profiles, electrical fittings, inverters and solar batteries. Any quote for these items that is more than a month old should not have gone up because of the exchange rate. If a supplier says it has, ask them to show you the rate they used. The gap between the official and parallel rates is about ₦55–₦60, or roughly 4%, so a large "FX risk" margin is hard to justify right now. Have a quote you are not sure about? Upload it to our Quote Checker and compare each line with current market rates.

4. Cement: No Big Change, Still ₦12,000–₦15,000

We did not find a new national price survey this week. The most recent market checks put a 50kg bag of Dangote or BUA cement at around ₦11,500–₦13,550 in Lagos (the lower price from a verified distributor, the higher from dealers), ₦11,800–₦15,000 in Abuja and ₦12,800–₦15,000 in Kano and Ibadan (Legit.ng). The Federal Competition and Consumer Protection Commission (FCCPC) inquiry into cement pricing, which began in August when it summoned the major producers, is still going on (The Rio Times).

The background has not changed either. Nigeria can produce far more cement than it uses. Installed capacity is estimated at more than 60 million tonnes a year, while the country uses about 25–30 million. Yet the price of a bag rose from as low as ₦9,300 in January to as much as ₦15,000 in some places by July. Transport, energy costs and long dealer chains explain much of the gap between the factory and your site.

What this means for your budget: a quiet week is a good time to lock in a price. If you are close to a big pour, such as a foundation, ground-floor slab or decking, ask two or three distributors in your own city for a written quote. Ask what discount you get for buying 100 bags or more, and whether delivery is included. Cement is one of the few items you can buy early and store, as long as you keep it dry and off the ground. Use our Cement Calculator to get the bag count first, and check our Material Prices page for the city rates our Estimator uses.

5. Renewed Hope Cities Draws 100,000+ Expressions of Interest

On 9 October, the Federal Government said its Renewed Hope Cities programme had received more than 100,000 expressions of interest. More than 10,000 applicants have moved on to firm subscriptions. The Federal Mortgage Bank of Nigeria (FMBN) has issued mortgages to more than 2,000 people and is processing more than 10,000 other applications (Daily Trust). The progress reported by site:

The programme is funded through a mix of public and private money, including FMBN, Family Homes Funds, the Nigeria Sovereign Investment Authority and commercial banks. FMBN has also given a ₦100 billion off-taker guarantee to reduce the risk for developers (Nigeria Housing Market). The government says its aim is that no household should spend more than a third of its income on housing. As in previous announcements, unit prices were not published in these reports.

What this means for you: 100,000 expressions of interest but only about 2,000 completed mortgages shows where the real bottleneck is: financing, not demand. If you are thinking about one of these schemes, ask for the full price, payment plan, mortgage rate and handover date in writing before you pay anything. Then compare it with what a similar home would cost to build yourself. Use our Estimator and add land, approvals and a contingency. Also allow for the waiting time. A unit due in March or April 2027 means paying rent for another 18 months, and that is a real cost too.

What This Means for Your Project This Month

Last week's picture has not really changed: the currency is steady, cement is still expensive outside the main production areas, and the rate cut has not yet reached borrowers. Diesel has shown again how quickly fuel prices can move. In practice:

• Do not build your budget around cheap credit yet. Get a written loan quote, and plan a phased build from savings as a fallback.
• Price diesel at about ₦1,800 a litre plus a buffer. Gantry prices now change several times a month.
• Challenge FX-linked increases. The naira has been steady around ₦1,330 for more than a month.
• Buy cement early if a big pour is coming. Get distributor quotes in your own city and store the bags dry.
• Update your estimate. If your budget is more than a month old, run it again in the Estimator with today's rates.

Frequently Asked Questions

Why did diesel go down and then up again in one week?

Dangote's gantry price now follows the cost of importing diesel and the price of crude oil closely. The import cost fell sharply at the start of October, so the refinery cut its price on 7 October. Crude then rose again, so the price went back up on 10 October. Expect more frequent changes, in both directions, than in the past.

The CBN cut rates. Why is my loan still so expensive?

The MPR is only a benchmark. Banks set their lending rates based on their own funding costs, the share of deposits they must keep at the CBN (the 45% Cash Reserve Ratio), and how risky they think the borrower is. Those factors have not changed much, so most lending rates have not either. Ask your bank in writing whether and when it will review your rate.

Is now a good time to buy imported finishes?

The exchange rate has been steady for more than a month, so prices for imported items should be steady too. If you have already chosen tiles, sanitary ware or fittings and have somewhere safe to store them, a steady exchange rate is a reasonable time to buy. Just remember that nobody can promise the rate will stay where it is.

How much do Renewed Hope Cities homes cost?

The reports this week did not include prices. Ask the scheme for written prices and payment terms. Compare them with your own estimate for a similar home, plus land, approvals and the rent you will pay while you wait for handover.

How often is this roundup published?

Usually every weekend. We link to the original reports wherever we can so you can check the figures yourself.