If you're planning to build a house in Nigeria but unsure about the true costs involved, this article helps you understand current construction expenses and budget effectively.
This article breaks down the real costs you'll face — and shows you how to avoid budget overruns that destroy construction projects.
How Much Does It Cost to Build a House in Nigeria 2025: Complete Breakdown for Lagos and Abuja (Materials, Labor & Permits)
Published: July 19, 2025
Written by Abdulateef Muhammed
Author of Nigerian Lawyer's Playbook
Founder: ASM Real Estate Solicitors
INTRODUCTION
Building your house in Nigeria has become increasingly expensive, with construction costs rising significantly due to inflation, currency fluctuations, and supply chain challenges.
Whether you're planning to build in Lagos or Abuja, understanding the complete cost breakdown is essential for proper budgeting and project planning. This comprehensive guide provides current 2025 pricing for materials, labor, permits, and all associated costs to help you build your dream home without financial surprises.
CURRENT CONSTRUCTION MARKET REALITY IN NIGERIA 2025
The Nigerian construction industry faces unprecedented challenges in 2025. Inflation continues to be a significant concern, influencing the prices of cement, steel, roofing sheets, and finishing materials.
Additionally, government policies and import tariffs continue to contribute to sudden price spikes across all construction materials.
The cost differential between Lagos and Abuja remains substantial. A 9-inch building block can go for ₦120 per piece in places like Ekiti and Yola, yet the same product would sell for as much as ₦180 or even ₦200 per piece in places like Lagos and Abuja.
🧠 QUICK TIP
Location = Cost Multiplier
Construction costs in Lagos and Abuja are typically 40-60% higher than other Nigerian cities. Factor this premium into your budget from day one.
Understanding these market dynamics is crucial for accurate budgeting. Many construction projects fail not due to poor planning, but because owners underestimate the true cost of building in Nigeria's major cities.
YOUR COMPLETE COST BREAKDOWN BY HOUSE TYPE
Standard 3-Bedroom Bungalow
Lagos Costs:
✅ Total Construction Cost: ₦25-35 million
✅ Cost per square meter: ₦65,000-85,000
✅ Typical floor area: 120-150 sqm
Abuja Costs:
✅ Total Construction Cost: ₦22-30 million
✅ Cost per square meter: ₦60,000-75,000
✅ Typical floor area: 120-150 sqm
What's Included:
✅ Foundation and structural work
✅ Roofing and electrical installation
✅ Basic plumbing and tiling
✅ Standard doors and windows
✅ Basic finishing materials
📌 CASE HIGHLIGHT
The Hidden 30% Rule
A Lagos homeowner budgeted ₦28M for a 3-bedroom bungalow but spent ₦36M. The extras: soil testing (₦200K), additional permits (₦800K), design changes (₦2.5M), and material price increases during construction (₦4.5M).
4-Bedroom Duplex (Standard)
Lagos Costs:
✅ Total Construction Cost: ₦45-65 million
✅ Cost per square meter: ₦70,000-90,000
✅ Typical floor area: 200-250 sqm
Abuja Costs:
✅ Total Construction Cost: ₦40-55 million
✅ Cost per square meter: ₦65,000-80,000
✅ Typical floor area: 200-250 sqm
Luxury 5-Bedroom Duplex
Lagos Costs:
✅ Total Construction Cost: ₦80-120 million
✅ Cost per square meter: ₦90,000-130,000
✅ Typical floor area: 300-400 sqm
Abuja Costs:
✅ Total Construction Cost: ₦70-100 million
✅ Cost per square meter: ₦85,000-115,000
✅ Typical floor area: 300-400 sqm
⚖️ LEGAL NOTE
Contract Price vs Final Cost
Nigerian law requires builders to honor quoted prices, but most contracts include escalation clauses for materials. Review these clauses carefully before signing any construction agreement.
CURRENT MATERIAL COSTS: WHAT YOU'LL ACTUALLY PAY
Foundation Materials (2025 Prices)
Cement:
✅ Lagos: ₦5,200-5,800 per 50kg bag
✅ Abuja: ₦4,800-5,400 per 50kg bag
✅ Your requirement: 200-300 bags for standard 3-bedroom
Sand and Granite:
✅ Lagos: ₦35,000-45,000 per tipper load
✅ Abuja: ₦30,000-38,000 per tipper load
✅ Your requirement: 15-20 tipper loads for standard foundation
Building Blocks:
✅ Lagos: ₦180-220 per 9-inch block
✅ Abuja: ₦150-180 per 9-inch block
✅ Your requirement: 2,000-3,500 blocks for standard 3-bedroom
🚩 COMMON MISTAKE
Buying Materials Too Early
Many builders purchase all materials upfront to "lock in prices." But cement and steel deteriorate in storage, often costing more than price increases would have.
Roofing Materials
Aluminum Roofing Sheets:
✅ Lagos: ₦3,800-4,200 per sheet
✅ Abuja: ₦3,500-3,900 per sheet
✅ Coverage: Each sheet covers approximately 1.8 sqm
Steel Roofing (Long Span):
✅ Lagos: ₦4,500-5,200 per sheet
✅ Abuja: ₦4,200-4,800 per sheet
Roofing Timber:
✅ Lagos: ₦180,000-220,000 per cubic meter
✅ Abuja: ₦160,000-200,000 per cubic meter
Electrical and Plumbing
Electrical Materials (Complete House):
✅ Basic 3-bedroom: ₦800,000-1,200,000
✅ 4-bedroom duplex: ₦1,500,000-2,200,000
✅ Luxury 5-bedroom: ₦2,500,000-4,000,000
Plumbing Materials:
✅ Basic 3-bedroom: ₦600,000-900,000
✅ 4-bedroom duplex: ₦1,200,000-1,800,000
✅ Luxury 5-bedroom: ₦2,000,000-3,500,000
Labor Costs: What Skilled Workers Charge
Skilled Labor Rates (2025)
Mason (Daily Rate):
✅ Lagos: ₦8,000-12,000
✅ Abuja: ₦7,000-10,000
Carpenter (Daily Rate):
✅ Lagos: ₦7,500-11,000
✅ Abuja: ₦6,500-9,500
Electrician (Daily Rate):
✅ Lagos: ₦10,000-15,000
✅ Abuja: ₦8,500-13,000
Plumber (Daily Rate):
✅ Lagos: ₦9,000-14,000
✅ Abuja: ₦8,000-12,000
📌 CASE HIGHLIGHT
The Specialist Premium
A homeowner in Lagos needed specialized tiling work. Regular tilers quoted ₦8,000/day, but the specialist charged ₦18,000/day. The result? Perfect installation that added ₦2M to property value.
Labor Cost by Construction Phase
Foundation Work (3-bedroom):
✅ Lagos: ₦3,500,000-4,500,000
✅ Abuja: ₦3,000,000-3,800,000
Roofing Work:
✅ Lagos: ₦2,200,000-2,800,000
✅ Abuja: ₦1,900,000-2,400,000
Finishing Work:
✅ Lagos: ₦4,500,000-6,500,000
✅ Abuja: ₦3,800,000-5,500,000
Permit Costs and Government Approvals
Lagos State Building Permits
Building Plan Approval:
✅ 3-bedroom bungalow: ₦180,000-250,000
✅ 4-bedroom duplex: ₦320,000-450,000
✅ 5-bedroom luxury: ₦500,000-750,000
Development Permit:
✅ Standard residential: ₦150,000-300,000
✅ Luxury residential: ₦400,000-600,000
Environmental Impact Assessment (if required):
✅ Basic assessment: ₦500,000-800,000
✅ Comprehensive assessment: ₦1,200,000-2,000,000
⚖️ LEGAL NOTE
Permit Timeline Reality
Lagos building permits typically take 60-90 days if you submit complete documentation. Missing documents can extend this to 6-12 months. Fines for non-compliance with building permit regulations can range from ₦50,000 to ₦1 million.
Abuja (FCT) Building Permits
Building Plan Approval:
✅ 3-bedroom bungalow: ₦150,000-200,000
✅ 4-bedroom duplex: ₦280,000-380,000
✅ 5-bedroom luxury: ₦450,000-650,000
Development Control Approval:
✅ Standard residential: ₦120,000-250,000
✅ Luxury residential: ₦350,000-500,000
Additional Permit Costs
Utility Connections:
✅ Electricity connection: ₦150,000-300,000
✅ Water connection: ₦80,000-150,000
Professional Fees:
✅ Architect fees: 3-5% of total construction cost
✅ Structural engineer: 1-2% of construction cost
✅ Building approval consultant: ₦200,000-500,000
🧠 QUICK TIP
The Professional Fee Investment
Hiring qualified professionals upfront costs 5-7% of your budget but can save 15-25% by preventing mistakes, design changes, and permit delays.
Hidden Costs That Destroy Budgets
Site Preparation Costs
Land Clearing and Leveling:
✅ Lagos: ₦300,000-600,000
✅ Abuja: ₦250,000-500,000
Soil Testing and Geotechnical Survey:
✅ Basic soil test: ₦150,000-250,000
✅ Comprehensive geotechnical survey: ₦400,000-800,000
Site Security and Fencing:
✅ Temporary fencing: ₦200,000-900,000
✅ Security services (6-month project): ₦300,000-600,000
Access and Infrastructure
Road Access (if required):
✅ Basic access road: ₦500,000-1,500,000
✅ Drainage and culverts: ₦300,000-800,000
Generator and Power Solutions:
✅ Site generator rental: ₦150,000-180,000 per month
✅ Fuel costs: ₦100,000-150,000 per month
🚩 COMMON MISTAKE
Underestimating Site Costs
Many builders focus only on materials and labor, forgetting site preparation can add 10-20% to total project cost, especially in undeveloped areas.
Design Changes and Variations
Mid-Construction Changes:
✅ Minor modifications: 5-10% cost increase
✅ Major design changes: 15-30% cost increase
✅ Structural modifications: 25-50% cost increase
Material Upgrades:
✅ Standard to premium tiles: ₦1,000,000-3,000,000 additional
✅ Basic to luxury fixtures: ₦2,000,000-5,000,000 additional
✅ Standard to imported materials: 40-80% price premium
Your Monthly Budget Planning Guide
3-Bedroom Bungalow Construction Timeline
Month 1-2: Site Preparation and Foundation
✅ Lagos budget required: ₦8,000,000-12,000,000
✅ Abuja budget required: ₦7,000,000-10,000,000
Month 3-4: Block Work and Roofing
✅ Lagos budget required: ₦10,000,000-14,000,000
✅ Abuja budget required: ₦8,500,000-12,000,000
Month 5-6: Finishing and Utilities
✅ Lagos budget required: ₦7,000,000-10,000,000
✅ Abuja budget required: ₦6,000,000-8,500,000
📌 CASE HIGHLIGHT
The Cash Flow Crisis
A builder in Abuja had ₦30M total budget but poor cash flow planning. Work stopped in month 4 when materials suppliers demanded payment, extending the project by 8 months and adding ₦4.5M in additional costs.
SMART BUDGETING STRATEGIES
The 20% Contingency Rule
Always add 20% to your total estimated cost for unforeseen expenses. In Nigeria's volatile construction market, this contingency often proves insufficient.
Phased Payment Strategy
✅ 10% advance to contractor
✅ 25% on foundation completion
✅ 30% on roofing completion
✅ 25% on electrical and plumbing completion
✅ 10% final payment on project completion
Material Purchase Timing
✅ Buy non-perishable materials (tiles, fixtures) early if prices are rising
✅ Purchase cement and steel just-in-time to avoid deterioration
✅ Secure imported materials early due to longer lead times
COST-SAVING STRATEGIES THAT ACTUALLY WORK
Material Sourcing Strategies
Direct Factory Purchases:
✅ Cement: Save 8-15% buying directly from manufacturers
✅ Roofing sheets: 10-18% savings from factory purchases
✅ Tiles and fixtures: 15-25% savings from wholesalers
Group Buying with Other Builders:
✅ Organize purchases with neighbors or other builders
✅ Typical savings: 5-12% on bulk materials
Best for: cement, sand, granite, and roofing materials
🧠 QUICK TIP
The Rainy Season Advantage
Material prices often drop 5-10% during rainy season when construction activity slows. Plan your material purchases accordingly.
LABOR COST MANAGEMENT
Skilled Team Assembly:
✅ Hire teams that work well together
✅ Reward quality work with bonuses
✅ Provide comfortable site conditions
Task-Based vs Daily Rate Contracts:
✅ Block laying: ₦80-120 per block (often more efficient than daily rates)
✅ Plastering: ₦800-1,200 per square meter
✅ Tiling: ₦1,500-2,500 per square meter
TECHNOLOGY AND MODERN CONSTRUCTION METHODS
Prefabricated Components
Precast Concrete Elements:
✅ Cost: 15-20% premium over traditional methods
✅ Benefits: Faster construction, better quality control
✅ Time savings: 20-30% reduction in construction time
Steel Frame Construction:
✅ Cost: 25-35% premium for materials
✅ Benefits: Earthquake resistance, faster assembly
✅ Best for: Multi-story buildings and areas with soil challenges
Smart Building Integration
Basic Smart Home Features:
✅ Smart electrical system: ₦800,000-1,500,000
✅ Security integration: ₦600,000-1,200,000
✅ Automated lighting: ₦400,000-800,000
Energy Efficiency Upgrades:
✅ Solar power system: ₦2,500,000-5,000,000
✅ Energy-efficient windows: 40-60% premium over standard
✅ Insulation systems: ₦300,000-600,000 additional
⚖️ LEGAL NOTE
Technology Contract Clauses
Smart home and solar installations often require separate contracts with specialized warranties. Ensure these are properly structured to avoid disputes.
FINANCING YOUR CONSTRUCTION PROJECT
Construction Loan Options
Commercial Bank Construction Loans:
✅ Interest rates: 18-25% per annum
✅ Loan-to-cost ratio: 70-80%
✅ Typical tenor: 12-24 months
Mortgage Construction Financing:
✅ Interest rates: 15-22% per annum
✅ Down payment required: 20-30%
✅ Converts to mortgage upon completion
Developer Financing:
✅ Down payment: 30-50%
✅ Interest rates: 12-18% per annum
✅ Often includes land purchase
Alternative Financing Methods
Cooperative and Contribution Systems:
✅ Popular in Nigerian communities
✅ Lower interest costs but requires group management
✅ Timeline flexibility often better than bank loans
Family and Personal Financing:
✅ Often the most flexible option
✅ Consider formal agreements to avoid disputes
✅ Document all contributions and expectations
📌 CASE HIGHLIGHT
The Family Investment Strategy
A Lagos professional raised ₦40M for construction through family members, offering 12% annual returns. The house was completed 3 months early and family members received both returns and increased property value.
QUALITY CONTROL AND AVOIDING CONSTRUCTION FRAUD
Material Quality Verification
Cement Testing:
✅ Always test cement strength before use
✅ Cost of testing: ₦15,000-25,000 per batch
✅ Fake cement can cost 300% more in remedial work
Steel Bar Verification:
✅ Check for proper manufacturer marking
✅ Test tensile strength for structural elements
✅ Quality steel prevents future structural failures
Contractor Verification Process
Essential Checks Before Hiring:
✅ Verify previous project completions
✅ Check professional certifications
✅ Obtain and verify references from recent clients
✅ Review insurance and bonding status
Red Flags to Avoid:**
📌 Requests for large upfront payments (>15%)
📌 No fixed address or proper business registration
📌 Extremely low bids compared to others
📌 Pressure for immediate signing without review time
🚩 COMMON MISTAKE
Choosing Based on Price Alone
The cheapest contractor often becomes the most expensive. Quality contractors charge 10-15% more but deliver projects on time and budget.
FUTURE-PROOFING YOUR INVESTMENT
Market Value Considerations
Features That Add Long-Term Value:
✅ Quality electrical installations supporting modern appliances
✅ Proper waterproofing and drainage systems
✅ Energy-efficient systems and solar readiness
✅ Security system pre-wiring and integration
Location-Specific Additions:
✅ Lagos: Flood-resistant features, backup power systems
✅ Abuja: Solar systems, water storage, security fencing
Maintenance Budget Planning
Annual Maintenance Costs:
✅ Basic maintenance: 1-2% of construction cost annually
✅ Major repairs (5-year cycle): 3-5% of construction cost
✅ Utilities and security: ₦200,000-500,000 annually
MAKING YOUR CONSTRUCTION DECISION
Building your house in Nigeria requires substantial capital, careful planning, and realistic budgeting. With construction costs ranging from ₦25-35 million for a basic 3-bedroom bungalow to ₦80-120 million for luxury 5-bedroom duplexes in Lagos and Abuja, proper financial planning is essential.
The key to successful construction lies in understanding that quoted prices are starting points, not final costs. Budget for a 20% contingency, plan your cash flow carefully, and invest in quality professionals and materials.
While construction costs continue to rise, property values in Lagos and Abuja have historically grown faster than construction costs, making building a sound long-term investment.
Your success depends on choosing the right professionals, understanding true market costs, and maintaining realistic expectations about timelines and budgets.
With proper planning and the information in this guide, you can build your dream home while avoiding the financial pitfalls that trap many Nigerian builders.
DISCLAIMER: Construction costs vary significantly based on specific requirements, market conditions, and contractor selection. This guide provides general cost estimates based on current market data. Obtain detailed quotes from qualified professionals for your specific project. Consult with legal professionals before signing construction contracts or making significant payments.
ABOUT THE WRITER
Abdulateef Muhammed is the founder of ASM Real Estate Solicitors. He earned his law degree from the University of Lagos in 1997 and was called to the Nigerian Bar in 1998. In 2018, he was appointed a Notary Public for life by the Chief Justice of Nigeria.
From 2022 to 2024, he served as the Vice Chairman of the Nigerian Bar Association, Kabba Branch.
He is the author of several legal and creative works, including:
✅ A Nigerian Lawyer’s Playbook: What Law School Doesn’t Teach About Litigation Practice
✅ Three Short Nigerian Plays (For Simple Staging and Strong Performances)
✅ Foot Rub and Coffee Black ( two full length screenplays published as part of the Nollywood Screenplay Library Series)
✅ His legal writing focuses on uncovering the hidden patterns behind litigation and exploring strategic aspects of legal leverage in Nigeria.
This article is part of ListedByOwners and ASM Real Estate Solicitors’ FREE educational series, helping Nigerian property buyers and sellers navigate fraud-free transactions.
For professional property listing and verification services backed by legal oversight contact ASM Real Estate Solicitors via the link below or directly via WhatsApp chat.