The short version: this edition covers two weeks, from 20 September to 3 October, because a lot happened. The Central Bank of Nigeria cut its benchmark interest rate by 3.5 percentage points, the biggest single cut it has ever made. The naira stayed steady while reserves grew. Diesel got a little cheaper at the start of October. Cement prices still depend heavily on where you buy. Below we explain what each story means if you are building, buying materials or financing a project. (Missed the last one? Read the roundup for September 13–19.)
1. CBN Cuts the Policy Rate to 23%, the Biggest Single Cut on Record
At its 307th meeting on 21–22 September, the Monetary Policy Committee cut the Monetary Policy Rate (MPR) from 26.5% to 23%, a reduction of 350 basis points (CBN, Nigeria Housing Market). The Committee also changed the corridor around the rate to +50/−300 basis points. It kept the Cash Reserve Ratio at 45% for commercial banks and 16% for merchant banks, and left the liquidity ratio at 30%. The decision came as inflation eased to 15.39% in August and reserves rose to about $55 billion. Commentators have called it the sharpest single cut in the rate's history (WSTC).
The Lagos Chamber of Commerce and Industry welcomed the cut but warned that it "should not be interpreted as an automatic reduction in the cost or availability of credit". Banks still judge borrowers on cash flow, collateral, credit history and sector risk, and high energy and logistics costs still weigh on businesses (LCCI).
Households do not feel much relief yet. The CBN's own Inflation Expectations Survey for September found that 77.2% of households saw inflation as high, up from 67.2% in August. Respondents did expect prices to ease gradually over the next three to six months (Nairametrics).
What this means for your budget: if you are paying for a build with a loan, a mortgage or a cooperative facility linked to market rates, this is the most important story in this edition. Your bank's lending rate will not drop by 3.5 points overnight, and it may not drop that far at all. Still, this is a good time to ask your lender for a fresh quote rather than relying on one from July. Run both figures through our Mortgage Calculator to see the difference in monthly repayments. If you have a variable-rate facility, ask in writing when and how the new MPR will affect your rate. If you are paying cash, a lower rate does not change the price of cement or blocks. It may, however, bring more buyers and developers back into the market over the coming months, and more demand rarely pushes material prices down.
2. Reserves Pass $55 Billion and the Naira Holds Near ₦1,329
Nigeria's external reserves went above $55 billion in September, and the CBN put them at about $55.25 billion when it announced the rate decision. On Friday, 2 October, the dollar traded at ₦1,328.17 in the official market, with the CBN reference rate at ₦1,329.16. In the parallel market it was about ₦1,375 to buy and ₦1,390 to sell (Techeconomy). That is almost the same level we reported two weeks ago (₦1,329.86 official, ₦1,385 parallel). In other words, the naira did not weaken after the rate cut.
What this means for your budget: a steady naira is good news for anything imported, priced from the dollar or made with imported inputs. That includes tiles, sanitary ware, aluminium windows, electrical fittings, inverters and solar batteries. The gap between the official and parallel rates is about ₦60, or roughly 4.6%. When a supplier quotes "at today's rate", ask which rate they mean. A gap this small gives you a fair basis to push back on quotes that still include an FX "risk premium" from earlier in the year. For solar and backup power in particular, our Solar Calculator lets you check whether a quote is reasonable before you commit.
3. Dangote Cuts Diesel to ₦1,780 a Litre
From 1 October, Dangote Petroleum Refinery lowered its diesel gantry price by ₦70 to ₦1,780 per litre, down from ₦1,850, a cut of about 3.8%. Other Lagos depots were selling diesel at between ₦1,795 and ₦1,890 at the time (Legit.ng). This partly reverses the run of increases in late August and early September, when diesel went up by ₦180 a litre over two adjustments to reach ₦1,850.
What this means for your budget: diesel affects construction costs in more ways than people expect. It powers the trucks that bring cement, sand, granite and blocks to your site. It runs the concrete mixer, the water pump and the generator. It is also a big cost for block-making yards and cement plants. A ₦70 cut will not show up on your supplier's invoice next week, because haulage rates and block prices are slow to come down. It does give you a reason to question any quote that adds a new "fuel surcharge". If you are planning your own site costs, such as running a mixer or vibrator for a slab pour or a generator for welding, price diesel at about ₦1,800 a litre for now. Our Mobilisation Calculator and Preliminaries Calculator include plant and power lines you can adjust.
4. Cement: ₦11,500 to ₦15,000 Depending on the City
A market check published on 21 September found a wide spread in the price of a 50kg bag of Dangote or BUA cement from city to city (Legit.ng):
| City | Reported price per 50kg bag |
|---|---|
| Lagos | ₦11,500 (BUA, verified distributor) – ₦13,550 (dealers) |
| Abuja | ₦11,800 – ₦15,000 |
| Kano | ₦12,800 – ₦14,000 (retail, after transport) |
| Ibadan | ₦13,000 – ₦15,000 (September reports) |
The report blames the spread on transport, distribution costs, dealer margins and how far a market is from production or supply points. It also notes that the Federal Competition and Consumer Protection Commission (FCCPC) is still investigating pricing and market practices in the cement industry. Two weeks ago we reported a "market quote" of around ₦12,000. These city figures show that ₦12,000 is closer to the lowest price you will find than to a typical one.
What this means for your budget: a single national cement price can be misleading. For a Lagos site, budget ₦12,000–₦13,500 a bag. For Abuja, Kano or Ibadan, the top of the range is safer unless you have a confirmed distributor price. Buying straight from a verified distributor saved about ₦2,000 a bag in the Lagos example above. On a three-bedroom bungalow that uses several hundred bags, that adds up to more than ₦1 million. Use our Cement Calculator to get the bag count first, then ask at least two distributors for quotes. Our Material Prices page shows the city-by-city rates our Estimator uses.
5. Housing: 1,230 FHA Units in Kano and a New Deficit Figure
On 30 September, the Federal Housing Authority's Kano State Controller said the government had built 1,230 housing units under the Renewed Hope Estate at Lambu and Renewed Hope City Phases I and II. The mix covers one-, two- and three-bedroom flats at Lambu, plus bungalows, terrace duplexes and four-bedroom duplexes with boys' quarters in Renewed Hope City. Phase I is complete and Phase II is still under construction. Prices were not disclosed (Daily Nigerian).
A day earlier in Abuja, the Minister of Housing and Urban Development presented homes to 430 staff of the NMDPRA under the Renewed Hope Housing Programme, with 365 units in Abuja and more in Kano and Lagos. The Minister said workers should not have to "spend 40 to 60 per cent of their income on rent". He put the national housing deficit at 16 million units and said about 250,000 units in abandoned projects could be recovered (THISDAY).
That is the third different deficit figure in three roundups: 22–28 million, then 14.98 million from a developers' association, and now 16 million from the Minister. As we said last time, these estimates depend on definitions. Treat them as a sign of the size of the problem, not as exact counts.
What this means for you: government and employer schemes are a real option, especially for salaried workers with access to the National Housing Fund. When prices are not published, though, you cannot compare them properly. Before you sign up for any off-plan or allocation scheme, work out what it would cost to build a similar home yourself. Use our Estimator and add land, approvals and a contingency. Then you can judge the offer on its numbers. The figure about abandoned projects also carries a warning for self-builders: projects stall when the money runs out before the roof goes on. Our deep-dive this weekend, on building a house in stages, explains how to plan a phased build so it does not end up as another abandoned shell.
What This Means for Your Project This Month
October starts with interest rates lower than at any point this year, a steady currency, slightly cheaper diesel and cement that is still expensive outside the main production areas. For most self-builders, the practical steps are:
- If you are borrowing, ask for new quotes now. The rate cut only helps you if your lender passes it on, and you will not know until you ask.
- Check FX-linked quotes again. A steady ₦1,329 and a narrow parallel-market gap mean imported finishes should not include a currency premium.
- Get cement prices from distributors in your own city. The difference between cities, and between distributors and dealers, is bigger than most month-to-month price changes.
- Update your estimate. If your budget is more than a month old, run it again in the Estimator with today's rates before you release money to anyone.
Frequently Asked Questions
Will the CBN rate cut make my mortgage cheaper?
Possibly, but not automatically or straight away. The MPR is the Central Bank's benchmark rate. Commercial lenders set their own rates based on their funding costs and how risky they think a borrower is. Variable-rate loans usually adjust over time, while fixed-rate loans do not change. Ask your lender in writing whether and when your rate will be reviewed. National Housing Fund mortgages through primary mortgage institutions have their own fixed concessionary rate and are not directly linked to the MPR.
Why is cement so much more expensive in some cities?
Mostly because of distance and the number of middlemen. Every extra kilometre of haulage, and every distributor and dealer between the factory and your site, adds to the price. Cities far from the main plants, or supplied through long dealer chains, pay more. The FCCPC is also investigating whether market practices are pushing prices up.
Does cheaper diesel mean cheaper blocks and sand?
Eventually, a little. Diesel is a big cost for block yards, sand and granite trucks, and site plant. In practice, prices go up quickly when diesel rises and come down slowly when it falls. A ₦70 cut is a reason to question new surcharges, not to expect lower prices right away.
Is the housing deficit 14.98 million or 16 million units?
Both figures were quoted in the past month, one by a developers' association and one by the Minister of Housing. Other sources put it at 22–28 million. The differences come from how inadequate housing is defined and which data is used. None of them changes what your own project will cost.
How often is this roundup published?
Usually every weekend. When there is a gap, as there was this time, we cover the missed weeks in one edition. We link to the original reports wherever we can so you can check the figures yourself.
Turn These Numbers Into Your Own Budget
Headlines tell you where the market is; your project needs a figure. Sketch your layout in the free Floor Plan Editor, then send the real room sizes into the Professional Estimator for an itemised cost breakdown using current material rates for 11 Nigerian cities. Already have a Bill of Quantities from your QS? Upload it to BOQ Import and have every line priced automatically.
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