Operators in the built environment sector have noted that the increasing costs of building materials are hampering the industry’s development.
Speaking during a recent media parley in Lagos, the Chairman of Agboyi-Ketu Local Council Development Area of Lagos, Dele Oshinowo, stated that the rising construction costs in Nigeria stem from various factors, including fluctuating prices of construction materials, infrastructure deficits, bureaucratic bottlenecks, shortage of skilled labour, and security concerns.
“Global market trends and local supply chain issues contribute to the volatility of material prices, while inadequate infrastructure necessitates additional investments and bureaucratic inefficiencies lead to delays and cost overruns. The shortage of skilled labour further compounds these challenges, exacerbated by emigration and security concerns in certain regions.
“To address these issues, concerted efforts from the public and private sectors are required. Streamlining regulatory processes, investing in infrastructure, and promoting vocational training programmes are crucial steps to mitigate escalating costs”.
According to Oshinowo, creating a conducive business environment, fostering transparency, and enhancing accountability can attract investment and drive sustainable development, ultimately reducing construction costs and facilitating growth in Nigeria’s built environment.
In the same vein, an estate valuer, Olorunyomi Alatise, said the hiking of building materials prices by manufacturers was increasing construction costs.
He noted that it was stifling the built environment by making it difficult to build new structures or renovate existing ones.
He remarked, “Higher construction costs can lead to delays in projects, and result in lower quality construction due to budget constraints. In addition, the higher cost of construction can make it more difficult for developers to secure financing for projects, which can further delay or cancel construction plans.
“Invariably, increasing construction costs can lead to a decline in the quality and quantity of the built environment”.
On Thursday, in a bid to stem the rising cost of cement and other building materials and enhance the delivery of affordable housing in Nigeria, the Minister of Housing and Urban Development, Ahmed Dangiwa, summoned manufacturers of cement and other building materials to a meeting.
Meanwhile, Oshinowo unveiled the next phase of developmental initiatives of his administration, geared towards realising the vision of making life better for the residents of the Agboyi-Ketu LCDA.
According to Oshinowo, the project focused on infrastructural projects, including housing schemes, site and service schemes, improved road networks, transportation facilities and public building renovations.
He declared, “We are about to launch 170 units of 2 bedroom apartments and 102 units of 4 bedroom apartments that is a total of 271 units of apartments. Residents enjoy an 18-hour power supply. The inauguration of these projects will be anytime soon.
“It is interesting to note that although the sale of the houses increased from N15.5 million to N16.5 million and then to N18.5 million, about 80 per cent of the apartments have been bought by the public and community residents are already occupying their apartments.
The Agboyi-Ketu LCDA chairman disclosed that his next project would be the construction of 248 units of 4-bedroom apartments, amongst others.
He said, “Agboyi-Ketu LCDA partnered with Google and Microsoft to provide ICT training to residents at the ICT Hub, all they need to do is log in and book a session”.
