Ask Nigeria Header Logo

High building costs impede housing plans

Photo of author

By Abraham Adekunle

Affordable housing not feasible if govt fails to regulate cost of building.

According to the Central Bank of Nigeria (CBN), Nigeria’s housing deficit has always been on the rise. In 1991, it was seven million, and it rose to 12 million in 2007, 14 million in 2010, and 20 million units in 2019. The Federal Mortgage Bank of Nigeria has revealed that the figure is currently pegged at 28 million units as of January 2023. This means that at least 28 million people are homeless. This is a cause for concern especially since costs of building materials are also skyrocketing.

This current situation known as a housing deficit occurs when a country’s housing units are in limited supply. Some of its causes include lack of favorable government policies, high cost of construction materials, high property costs, and a lack of access to credit facilities for potential homeowners. Housing is essential, next to food and clothing. Its availability is critical to the well-being and productivity of the people. The lack of it affects people’s health, safety and their ability to access education as well as some essential services.

Housing deficit has got worse over the years.

In Nigeria, access to affordable housing has remained a dream to both the government and the people. Most Nigerians who spoke to the media on the increasing cost of building materials believe that most policy makers are viable and can afford any standard of building regardless of its cost and maintenance, and so they will not legislate on it. This has also been the sentiment of the general populace especially on lawmakers in the two legislative chambers. Many also refer their long list of allowances and bonuses as testament of their unwillingness to support such bill.

Continuing on, in the same vein, the president of Building Collapse Prevention Guild (BCPG), Mr. Sulaimon Yusuf, believes that the moment the cost of building materials drops and government makes land available for developers, there will be much affordable buildings for Nigerians. He said that when there are more houses than the people looking to acquire them, the prices will reduce. This is simply the law of demand and supply, which states that the more the supply, the lower the prices go.

Increased building costs due to a number of factors.

A local who had spoken to newsmen said that the high cost of construction is due to a number of factors that include high cost of labour, the high cost of raw materials, and the high cost of land. He further said that high cost of construction is also due to the low productivity of the construction sector, which results in higher costs per unit of output. In other words, the number of houses that should be produced in a particular amount of time are actually way higher than the houses built. This means that more money and time is spent building less units of houses, and the costs are passed down to the home buyer or the tenants.

This issue has led to an increase in mortgage fraud as well as increased economic inequality. However, there are some policies that can be adopted by policymakers that would help mitigate the negative effects of the high cost of construction. According to this person, one of such is to invest more heavily in constructing more affordable housing units through an investment-led approach, which would involve borrowing money at cheaper rates than the rates at which it lends to private developers.

Other policies to mitigate the housing deficits.

Another solution would be for policymakers to cut down the power tariffs charged by state governments, while another solution is for policymakers to adopt sound economic policies such as expansionary monetary policy and fiscal consolidation, which will lead to lower interest rates on loans from commercial banks. A property developer in Anambra noted that the government has taken some steps to address the high cost of building materials, including reducing the cost of import duties on some materials and increasing local production. However, more needs to be done to make building materials more affordable and accessible to Nigerians.


Related Link

Wikipedia: Website


The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.

Fact Checking Tool - Snopes.com

0 0 votes
Rate This Article
10 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Ask Nigeria
Admin
5 months ago

High building costs impede housing plansAffordable housing not feasible if govt fails to regulate cost of building.  – Express your point of view.

Adeolastan
Adeolastan
Member
5 months ago

I completely agree that high building costs can impede housing plans and make affordable housing unfeasible. It’s important for the government to regulate the cost of building to make it more accessible for people to own homes. This will not only help to address the housing crisis in Nigeria but also provide a better quality of life for people who are struggling to afford housing.

Abusi
Abusi
Member
5 months ago

The cost of building have actually spiralled. There is need for us to regulate the price of these building materials. The real estate sector is already at a point where there is inflation in the cost of houses. Government needs to intervain.

Iyanu12345ogg
Iyanu12345ogg
Member
5 months ago

High building costs can significantly impede housing plans, making the provision of affordable housing unattainable. To counter this, the government will plays a crucial role in regulating building costs through effective policies and interventions. By doing so, they can create an environment conducive to the development of affordable housing options, ensuring that everyone has access to safe and adequate housing.

DimOla
DimOla
Member
5 months ago

Government policies is killing the economy of this nation. There is high level of poverty in the land, cost of building materials is on the increase, inflation is in the country. More people are getting homeless because landlord are increasing the cost of renting an apartment.The terrible thing about this country called Nigeria is that the rich are getting richer while the poor are getting poorer. It is well

Kazeem1
Kazeem1
Member
5 months ago

High building costs impede housing plans, absolutely agree that expensive construction can stymie housing initiatives and make cheap housing impractical. To make it easier for people to building house it is crucial for the government to regulate construction costs and solve the high building cost.

Taiwoo
Taiwoo
Member
5 months ago

Construction costs have risen dramatically. We must control the cost of these construction materials. The price of homes has already reached an inflationary peak in the real estate market. Government need to take control because the rate how things are increasing it will be tough for people to building house

Last edited 5 months ago by Taiwoo
Haykaylyon26
Haykaylyon26
Member
5 months ago

Affordable housing not feasible if govt fails to regulate cost of building. Government need to regulate the cost of building thing are too cost inflation in the country is very high and if things are too cost people will not be able to purchase their own house something need to be done

Christiana
Christiana
Member
5 months ago

High construction prices has put a damper on housing projects and make affordable homes unachievable and this resulted from inflation and Naira value dropping.

SarahDiv
SarahDiv
Member
5 months ago

When government policies are not favourable to the economy or are poorly implemented could cause a lot of harm to the economy. The high cost of building materials has made it difficult for house developers to construct more houses which makes it unaffordable for those that want an apartment. Please, the FG should intervene and regulate the cost of building materials before it goes out of hand.