Traditional building materials are resources that are found readily in large quantities across Nigeria. The availability may largely be dependent on the geographical location of the area as well as the chemical and physical components of such materials. The paper critically appraises some major local building materials available in Nigeria such as adobe, bamboo, thatch, stones, timber, coconut tree, grasses etcetera. These materials are cheap relative to the imported materials from outside the country. The purpose of this paper was to examine the major advantages, challenges, and the way forward for traditional building materials in increasing low-cost housing supply and affordability in Nigeria. The study found the promotion of cultural heritage, availability, and affordability of the materials, energy efficiency, reusability, and biodegradability among others as the major advantages of traditional building materials. However, acceptability, durability, deforestation, low strength, and frequent maintenance, among other issues were found to be the major challenges associated with houses built with traditional building materials. Recommendations for the adoption and improvement of the locally available materials for building houses are made. This paper contributes to the body of knowledge in the area of traditional building materials in Nigeria and Africa at large.