Nigeria’s housing crisis may not be solved by building more houses alone, as rising construction costs continue to make home ownership increasingly difficult for millions of Nigerians.
Property developers and housing experts say the bigger challenge lies in the high cost of building materials, including cement, iron rods, roofing sheets, blocks, tiles and other construction inputs.
They argue that unless the country reduces its dependence on imported building materials and strengthens local manufacturing, efforts to close the housing deficit will continue to face serious setbacks.
The rising cost of materials has forced developers to increase property prices, delay projects and, in some cases, consider cheaper alternatives to keep construction within budget.
Local production seen as solution
Stakeholders in the built environment believe Nigeria needs to develop a stronger local building materials industry to reduce construction costs.
They say increased domestic production could reduce dependence on imports, ease pressure on foreign exchange, create employment, support the naira and ultimately make housing more affordable.
Property developer, Obiora Okeke, said Nigeria had reached a stage where the country was effectively exporting raw materials and importing finished products at significantly higher prices.
He argued that attracting manufacturers to Nigeria would strengthen domestic production and create jobs for young Nigerians.
Okeke also urged the Federal Government to take urgent steps to address the rising cost of building materials, saying lower construction costs would have a direct impact on the housing crisis.
For housing stakeholders, the building materials market is critical because increases in the cost of construction inputs eventually translate into higher house prices and rents.
Building materials drive construction costs
Another property developer, Chief Paul Okoye, said building materials could account for between 30 and 50 per cent of the total cost of a construction project and influence up to 80 per cent of the project schedule.
He identified blocks, tiles, roofing sheets and iron rods among the major materials used in construction.
According to him, the dominance of private operators in the building materials market makes prices vulnerable to supply and demand pressures, as well as the activities of middlemen.
Okoye said the government should pay greater attention to the sector because shelter is a basic human need and should not be treated solely as an ordinary commodity whose price is determined by market forces.
Rising material prices delay housing projects
The persistent increase in construction costs has created difficulties for developers and prospective homeowners.
Okoye identified government fiscal policies, scarcity and hoarding of raw materials, fluctuations in fuel prices, unreliable electricity supply, inadequate infrastructure, high interest rates and corruption among factors contributing to the rising cost of building materials.
Nigeria’s dependence on imported construction inputs is another major concern.
Although cement is manufactured locally, many other conventional building materials and production inputs are imported, exposing the sector to foreign exchange fluctuations and international price movements.
For prospective homeowners, rising material prices mean savings may lose value before enough money is accumulated to complete a house.
Developers also face difficulties because construction projects are often planned months or years ahead. A project budgeted at the prevailing price of cement, steel and other materials can become significantly more expensive before completion.
This uncertainty makes it difficult for developers to determine final property prices and can lead to repeated reviews of project costs.
The situation can also create disputes with prospective buyers, particularly where developers increase prices after buyers have already committed funds.
In some cases, the pressure to remain within budget may also encourage the use of inferior construction materials, potentially compromising the quality and safety of buildings.
Government urged to support manufacturers
Stakeholders say government intervention should focus on creating an environment that allows local manufacturers to increase production and compete effectively.
They called for tax incentives, affordable financing, improved electricity supply, better transport infrastructure and easier access to foreign exchange for essential machinery and production inputs.
According to them, stronger domestic manufacturing would not only benefit the housing sector but also create direct and indirect employment and reduce foreign exchange spent on imports.
It would also support businesses involved in transportation, distribution, fabrication and other areas of the construction value chain.
The objective, they stressed, should not necessarily be artificial price controls but policies that increase production, improve competition and reduce unnecessary costs.
More local manufacturers producing cement, steel, roofing materials, tiles, doors, windows and other construction inputs could also reduce the ability of a small number of suppliers and middlemen to influence prices.
Cement remains a major concern
Cement remains one of the most important construction materials in Nigeria, making its price particularly significant to the housing sector.
Abdul Samad Rabiu, Chairman of the Board of Directors of BUA Cement Plc, had previously linked the high cost of cement to foreign exchange volatility and rising production costs.
Rabiu argued that manufacturers had also experienced significant increases in the cost of production as the naira weakened against the dollar.
He expressed optimism that a stronger naira could eventually lead to lower cement prices.
The BUA chairman also disclosed that the company was completing a three-million-tonne production line expected to increase its total production capacity to about 20 million tonnes annually by the first quarter of 2027.
For housing stakeholders, however, increased cement production is only one part of the solution.
They believe Nigeria needs a comprehensive strategy covering the entire building materials value chain, from mining and processing raw materials to manufacturing, transportation and distribution.
Developers turn to cheaper alternatives
The rising cost of conventional construction materials has also encouraged developers and researchers to explore cheaper and more sustainable alternatives.
Property developer Dr Doherty Oyelese said materials such as polished bamboo could be used for some applications, including floor finishing, as alternatives to conventional vitrified or ceramic tiles.
He said innovation was necessary because the housing sector could not continue to rely exclusively on materials whose prices are heavily exposed to foreign exchange volatility and international market pressures.
Researchers, manufacturers and developers, he added, need to work together to develop construction materials that are suitable for Nigeria’s climate and the purchasing power of its population.
Reducing construction waste
Stakeholders also identified waste reduction as another way to lower construction costs.
Oyelese said developers could adopt better project management methods, equipment and construction practices to minimise material wastage.
Poor planning, procurement and supervision can result in excessive use of cement, sand, blocks, steel and other materials.
Better measurement, procurement and site management could therefore help developers reduce unnecessary expenses.
However, stakeholders insist that efficiency at construction sites alone will not solve the broader problem.
They want the government to support local manufacturers and encourage investment in factories producing construction materials.
Housing programmes face cost pressures
The high cost of construction also threatens the effectiveness of government housing programmes.
Nigeria has implemented various initiatives aimed at addressing its housing deficit, including the social housing programme established under the Muhammadu Buhari administration through Family Homes Funds Limited, which targeted the delivery of 200,000 affordable houses while supporting private developers.
But stakeholders argue that such programmes will struggle to achieve their objectives if the cost of construction continues to rise.
They noted that government could provide land and financing for housing, but the number of homes that can be delivered with available funds would continue to decline if the prices of cement, steel, roofing sheets, tiles, doors and other materials keep increasing.
Local materials could unlock mass housing
Stakeholders believe a reduction in the cost of locally produced building materials could encourage more Nigerians to adopt gradual construction, allowing them to build their homes in phases as their income permits.
Lower construction costs could also make it easier for developers to offer more affordable homes to low- and middle-income Nigerians.
The impact would extend beyond home ownership.
More construction activity would create opportunities for artisans, engineers, architects, surveyors, transporters, manufacturers and other professionals while stimulating demand for locally produced goods and services.
Ultimately, stakeholders argue that Nigeria cannot achieve affordable housing while operating an expensive construction system.
They believe a deliberate policy focused on local production, improved infrastructure, reliable energy supply, affordable financing and construction innovation could reduce building costs and unlock greater investment in mass housing.
For developers, better planning and efficiency remain important.
For manufacturers, increasing local production is critical.
For researchers, developing affordable and sustainable alternatives should remain a priority.
But for government, stakeholders say the responsibility is to create the economic and industrial environment in which these efforts can succeed.
Until the cost of construction materials becomes more affordable, Nigeria’s ambition of achieving mass home ownership will remain difficult.
Local building materials may not be the entire solution to the country’s housing crisis, but stakeholders believe they could be one of the most important pieces of the puzzle.
