Authored by the expert who managed and guided the team behind the Nigeria Property Pack
Everything you need to know before buying real estate is included in our Nigeria Property Pack
Building a house in Nigeria requires careful financial planning as construction costs vary dramatically across different regions and material choices.
As of September 2025, a standard three-bedroom bungalow costs between ₦15-35 million to build in major cities like Lagos and Abuja, with material costs rising 40-60% since 2023 due to inflation and naira depreciation. Land prices range from ₦17,000 per square meter in suburban areas to over ₦1 million per square meter in premium locations like Ikoyi or Victoria Island.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.
Building costs in Nigeria have increased significantly in 2025, with cement prices reaching ₦9,500-10,500 per bag and iron rods costing ₦700,000-1,250,000 per ton.
Total construction costs for residential properties range from ₦20,000-50,000 per square meter, depending on location and finish quality, with hidden costs adding 10-20% to initial budgets.
| Cost Category | Price Range | Key Factors |
|---|---|---|
| Land (per sqm) | ₦17,000 - ₦1,000,000 | Location, proximity to city center |
| Building Materials | ₦8-12 million (3-bed) | Cement, iron, blocks, sand |
| Labor Costs | ₦6,000-10,000/day | Skilled vs unskilled workers |
| Professional Services | ₦400,000-600,000 | Architect, engineer, permits |
| Utilities Connection | ₦800,000-1,500,000 | Electricity, water, septic |
| Interior Finishes | ₦3-8 million | Quality of tiles, fittings, paint |
| Hidden Costs | 10-20% of total | Security, supervision, waste |
How much does land cost per square meter in different Nigerian cities?
Land prices in Nigeria vary dramatically based on location, with premium areas commanding significantly higher rates than suburban zones.
In Lagos's most exclusive neighborhoods like Ikoyi and Victoria Island, land costs between ₦200,000 to ₦1,000,000 per square meter as of September 2025. Similarly, Abuja's prime districts such as Maitama and Katampe now command prices exceeding ₦300,000 per square meter.
Emerging and suburban areas offer more affordable options, with land prices ranging from ₦17,000 to ₦400,000 per square meter in locations like Epe, Ikorodu in Lagos, or Kuje in Abuja. These areas typically require additional infrastructure development but provide significant cost savings for budget-conscious builders.
Regional variations also affect pricing, with northern cities generally offering lower land costs compared to southern commercial hubs. Access to major roads, proximity to business districts, and existing infrastructure significantly influence these price differences.
It's something we develop in our Nigeria property pack.
What government fees and legal costs must I pay before building?
Government fees and legal documentation costs represent a substantial upfront investment before construction begins.
Land survey fees vary significantly by state and plot size, ranging from ₦150,000 to ₦13,000,000 depending on location and complexity. In Lagos specifically, survey costs typically range between ₦425,000 to ₦1,575,000 for plots up to 700 square meters, with higher fees for larger properties.
Title registration requires 3-5% of the land purchase price, while Governor's consent (mandatory in Lagos) costs 8-15% of the land value. Stamp duty adds another 0.75-1.5% to your legal expenses, making proper budgeting essential for these unavoidable costs.
Additional documentation may include Certificate of Occupancy processing, environmental impact assessments for larger projects, and various administrative fees that can add ₦200,000-500,000 to your budget. Working with experienced legal professionals helps navigate these requirements efficiently while ensuring compliance with all regulations.
How much should I budget for architectural drawings and building permits?
| Service Type | Cost Range | Details |
|---|---|---|
| Architectural Drawings | ₦130,000 - ₦180,000 | Complete floor plans for 3-bedroom bungalow |
| Structural Drawings | ₦130,000 - ₦180,000 | Foundation and structural engineering plans |
| Mechanical & Electrical | ₦130,000 - ₦180,000 | Plumbing, electrical, and HVAC layouts |
| Building Permits | ₦50,000 - ₦500,000 | Standard residential approvals |
| Complex Project Permits | Up to ₦5,000,000 | Multi-story or commercial-scale projects |
| Professional Consultation | ₦100,000 - ₦300,000 | Ongoing architectural supervision |
What are current building material prices in Nigeria?
Building material costs have experienced significant increases throughout 2025, driven by inflation and currency fluctuations.
Cement prices now range from ₦9,500 to ₦10,500 per 50kg bag, representing a substantial increase from previous years. Iron rods cost between ₦700,000 to ₦1,250,000 per ton depending on diameter and quality specifications.
Sharp sand costs ₦6,500-8,000 per ton, while gravel typically costs ₦33,000-37,000 per 7-ton load. Building blocks (9-inch) are priced at ₦400-500 each, with bulk purchases sometimes offering modest discounts.
Regional price variations can add 10-30% to material costs depending on transportation distances and local supply availability. Coastal areas often face higher prices due to logistics challenges, while areas near major manufacturing centers may offer slightly better rates.
Imported materials face additional challenges from foreign exchange fluctuations, making local alternatives increasingly attractive for cost-conscious builders.
How much does construction labor cost per day?
Construction labor rates have stabilized around specific ranges across most Nigerian cities as of September 2025.
Skilled workers including masons, carpenters, electricians, and plumbers typically earn ₦6,000-10,000 per day. These rates reflect the specialized knowledge required for quality construction work and may increase for workers with proven track records or advanced certifications.
Tilers and painters command slightly higher rates of ₦5,000-20,000 daily due to regional variations and the precision required for finishing work. Urban areas generally pay higher rates than rural locations, reflecting cost of living differences and worker availability.
Unskilled laborers for tasks like mixing concrete, carrying materials, or site cleanup typically earn ₦3,000-5,000 per day. Gang labor arrangements for large projects may offer bulk pricing advantages for extended construction periods.
Supervision costs add ₦200,000-600,000 to total project expenses, but experienced site management significantly reduces delays and quality issues that could prove more expensive long-term.
What's the realistic total cost per square meter for a three-bedroom bungalow?
Construction costs per square meter depend heavily on location, finish quality, and current material prices.
Standard three-bedroom bungalows cost ₦20,000-50,000 per square meter in major Nigerian cities, resulting in total construction costs of ₦15-35 million depending on size and specifications. These figures include basic structural work, roofing, and standard finishing materials.
Higher-end finishes, premium materials, or complex architectural features can push costs toward the upper range or beyond. Simple, functional construction using local materials and standard finishes typically falls toward the lower cost range.
Regional variations significantly impact these costs, with Lagos and Abuja generally commanding premium pricing due to higher labor costs, material transportation expenses, and regulatory requirements. Secondary cities may offer 15-25% cost savings while maintaining quality standards.
It's something we develop in our Nigeria property pack.
Don't lose money on your property in Nigeria
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much more does building a duplex cost compared to a bungalow?
Duplex construction requires 25-50% higher costs per square meter compared to single-story bungalows due to additional structural requirements.
Two-story construction demands stronger foundations, additional structural support, staircases, and more complex roofing systems. These factors typically push total construction costs above ₦25 million for mid-range finishes in major cities.
Plumbing and electrical systems become more complex in multi-story buildings, requiring additional materials and specialized labor. Scaffolding and safety equipment add temporary but necessary expenses to the construction process.
However, duplexes maximize land utilization efficiency, providing more living space per square meter of land purchased. This can improve overall value per square meter in areas where land costs represent a significant portion of total project expenses.
What does connecting utilities and installing septic systems cost?
Utility connections represent significant one-time investments that vary based on proximity to existing infrastructure.
Electricity connection costs ₦200,000-500,000 for standard residential service, with higher costs required when new transformers or estate-wide supply systems are needed. Urban areas with existing infrastructure typically cost less than rural locations requiring new service lines.
Water supply options include city water connections costing ₦80,000-200,000 or private boreholes ranging from ₦350,000-1,000,000 depending on depth and water quality requirements. Borehole installation includes drilling, pump installation, and storage tank systems.
Septic tank installation costs ₦300,000-800,000 total, including excavation, tank construction, and drain field installation. Local soil conditions and environmental regulations may require specialized designs that increase costs.
Generator installations for backup power add ₦150,000-450,000 during construction, providing essential power for construction activities and future use during grid outages.
How much do roofing, windows, and doors add to building costs?
Roofing represents one of the most significant single construction expenses after structural work.
Aluminum or stone-coated roofing costs ₦7,500-11,500 per square meter installed, while additional woodwork for complex roof designs adds ₦150,000-450,000 to total roofing expenses. Quality roofing materials provide long-term weather protection that justifies the initial investment.
Windows using aluminum frames with casement designs cost ₦25,000-80,000 per window depending on size and quality specifications. Energy-efficient glazing options cost more initially but provide ongoing comfort and cooling cost benefits.
Steel security doors cost ₦18,000-40,000 each, while interior doors use less expensive materials and simpler hardware. Door quality significantly impacts security and long-term durability, making appropriate investment worthwhile.
Professional installation ensures proper weather sealing and security function, preventing future maintenance issues that could exceed initial cost savings from cheaper installation methods.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What should I budget for interior finishes and fittings?
Interior finishing costs vary dramatically based on material quality and design complexity preferences.
Floor tiling costs ₦3,000-6,000 per square meter including materials and professional installation. Ceramic tiles offer durability and easy maintenance, while premium materials like marble or imported tiles significantly increase costs.
Kitchen cabinet installations range from ₦300,000-800,000 depending on size, materials, and hardware quality. Custom carpentry work costs more but provides optimal space utilization and design integration.
Bathroom fittings including toilets, sinks, and fixtures cost ₦120,000-350,000 per complete bathroom. Water-efficient fixtures may cost more initially but provide ongoing utility savings and environmental benefits.
Paint costs ₦15,000-50,000 per 20-liter bucket with application labor adding ₦500-1,500 per square meter. Quality paint provides better coverage, durability, and color retention compared to budget alternatives.
Ceiling work using POP or screeding costs ₦11,000-14,000 per 4-liter bucket with installation adding ₦2,500-5,000 per square meter for professional finishing work.
How do inflation and currency fluctuations affect building budgets?
Economic factors have dramatically impacted construction costs throughout 2025, requiring careful budget planning.
Building material prices have surged 40-60% since 2023 due to naira depreciation, inflation exceeding 30%, and material scarcity from supply chain disruptions. These increases affect both local and imported materials, making historical cost estimates unreliable.
Delaying construction by one year could increase total project costs by 15-30%, particularly for materials dependent on imports or fuel transportation. Cement, steel, and specialized building components face the highest price volatility.
Regional price differences of 10-30% reflect transportation costs, local regulations, and supply availability variations across Nigerian states. Coastal areas often face higher prices due to logistics challenges and port-related expenses.
Fixed-price contracts with suppliers and contractors provide some protection against price increases during construction periods, though few suppliers offer extended price guarantees in the current economic environment.
It's something we develop in our Nigeria property pack.
What hidden costs do people typically overlook?
1. **Security expenses during construction**: ₦50,000-150,000 per month for site protection, equipment security, and material theft prevention 2. **Project management and supervision fees**: ₦200,000-600,000 for professional oversight, quality control, and coordination between contractors 3. **Waste disposal and site cleanup**: ₦50,000-200,000+ depending on project size and local disposal regulations 4. **Generator rental and fuel costs**: ₦150,000-450,000 for reliable power during construction when grid electricity is unreliable 5. **Regulatory inspection fees**: Multiple inspections throughout construction requiring various government approvals and associated costs 6. **Site preparation expenses**: Land clearing, grading, temporary access roads, and utility connections to construction areas 7. **Neighbor consent and community fees**: Particularly in rural areas where traditional land rights or family settlements require additional payments 8. **Weather protection and delays**: Seasonal construction delays, material protection, and extended labor costs during rainy seasonsConclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Building a house in Nigeria requires comprehensive budgeting that accounts for rapidly changing material costs, regional price variations, and numerous hidden expenses that can significantly impact total project costs.
Successful construction projects in 2025 demand careful planning, reliable supplier relationships, and contingency budgets of 15-20% to handle unexpected costs and economic fluctuations affecting the Nigerian construction market.
Sources
- Average Price Per Square Meter Nigeria
- Punch Newspaper - Abuja Land Prices
- JECCL - Residential Construction Nigeria
- Prime61 - Building Costs Nigeria 2025
- Titanium Building Solutions - Cement Prices
- Bullion Rise Consult - Cement Prices 2025
- Best Sales - Iron Rod Prices
- Dutum Group - House Building Costs
- Prestige Paint - Building Materials Cost
- Nairametrics - Cement Price Analysis