The increase in the prices of building materials across the country is no doubt, compounding the woes of the housing sector. This is despite the federal government’s efforts to ameliorate these challenges by boosting accessibility to affordable housing. The prevailing rise in prices of essential construction ingredients is forcing ripple effects on struggling Nigerians.
Cost of goods and services have over the years experienced steady increase in the country and housing is not left out.
This is even as low and middle-income earners have been decrying the high cost of rent while those trying to build are bemoaning high cost of building materials.
The recent hike in the cost of building materials has gloomily brought a new twist that has dashed the hopes of thousands of prospective home owners. A large proportion of this set of people still use the tortuous traditional method of buying land and building houses over some years using their daily earnings.
The sad development has placed a monstrous task on government and private developers who instead of concentrating on the enormous task of providing affordable mass housing for citizens are now engulfed in uncertainties and the need for alternatives.
As the country is currently undergoing very difficult times and most citizens face real hardship, the astronomical rise in the cost of essential building materials, especially cement, whose production and supply over the years, had been at the mercies of a few individuals operating in monopoly has kept these commodities beyond the affordability of many Nigerians. This situation has thereby plagued the nation deeper into its present state of housing disequilibrium, which is estimated to be about 28 million deficits.
A report from the Federal Ministry of Housing analyses that the country needs at least 28 million housing units to provide adequately for its population which increases yearly. Considering the escalating prices of materials, it implies that an estimated N23 trillion is required to provide housing units to fill the present deficit in the country. Regrettably, that will take more than a miracle to resolve considering that it was only N1.32 trillion that was allotted to the ministries of Housing, Power, Transport, Water Resources and Aviation in President Tinubu’s 2024 budget to tackle infrastructural deficit.
Obviously, all these ministries would have to think out of the box and find solutions beyond just their statutory federal allocations, if they really want to make any significant impact.
Narrowing this to the housing sector which is receiving about N400 billion from the 2024 budget, the situation has continued to show its ugly face considering other factors as the escalating prices of building materials which has placed a daunting obstacle on the path to home ownership for many Nigerians.
As Nigerians react to this incessant increment, a family man, Usman Mohammed who presently resides in a rented apartment in Karu, FCT and deals in selling wrappers (Ankara) at the Garki Market, was interviewed at the site where he is building a three bedroom flat in Kurudu, FCT, he lamented that for almost two months, he has stopped work on the site due to his inability to meet up with the current prices of building materials. He said he just resumed working on the project because the price of cement just dropped a little due to government intervention.
He explained that his plan was to invest in the building so that he won’t have to renew rent at his present abode.
Unfortunately, Usman stressed that, “with the way things are even going, even if I put the money of my rent and my business capital into this project, it cannot be enough to meet up with the target I had set considering the high cost of construction materials. Every year, I had always set target to finish this work, this is the sixth year now and with the way things are going, this year seems to be the worst.”
At the peak of this whole drama, the cement manufacturers gave their reasons for the skyrocketing cost of their commodity to include issues associated with FOREX and production level falling short of demand.
To restate this claim, the recent chairman of the Cement Producers’ Association of Nigeria (CEPAN), Prince David Iweta, explained that the country is undergoing a case of demand clearly outweighing supply and argued that there is no way the few players producing cement in the industry could meet the cement needs of Nigerians.
The body of Architects also led by its president, Arc Mobolaji Adeniyi, recently in Abuja had expressed concern over the situation and claimed that it could lead to malpractices by unscrupulous contractors and developers, which could lead to more incidents of building collapse, if statutory and professional oversight is not beefed up.
Minister of Housing and Urban Development, Arc Ahmed Dangiwa who also summoned cement manufacturers to a meeting, queried that the cement manufacturers were not doing enough to stem the rising cost of the product in the country. He stated that it will not accept a situation where the price of essential building materials like cement continue to rise uncontrollably.
When the special assistant to the minister of Housing and Urban Development, Mr Mark Chieshe, was contacted to tell Nigerians the blueprint of his principal’s plans and the steps taken in addressing the escalating prices of construction materials, he revealed that Dangiwa’s plans encompass several key initiatives. They involve implementing land reforms to streamline land administration, enhancing the institutional capacity of federal government agencies such as the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA).
“The Ministry is increasing housing supply through a multi-agency delivery mechanism, initiating new city developments via Renewed Hope Cities and Estates, and launching a nationwide urban renewal and slum upgrading programme.
“Other initiatives are the establishment of building materials manufacturing hubs, one in each of the six (6) regions to reduce imports, generate employment opportunities, enhance affordability in housing delivery and the creation of a National Social Housing Fund (NHSF) to facilitate access to decent shelter for low-income, no Income, and vulnerable groups.”
The minister had stated at a recent event that the ministry was working towards streamlining land administration that would cut through bureaucratic bottlenecks and systemic inefficiencies to ensure cost effectiveness and efficient access to land by individuals within the country and investors coming into the country.
A senior civil servant, who only identified herself as Mrs G, told LEADERSHIP that over the past 18 years she and her family had tried so hard to get a genuine land to build a house in the FCT, they could not achieve that goal due to bureaucratic procedures pertaining to land ownership and authentic documentations in the FCT.
“We bought a land here from the natives but it was revoked by AMAC and that was a painful lose. So, you see, it is very risky investing in a property especially those located within Abuja due to all these confusion and processes. This is causing a lot of inconveniences to the low and middle class earners especially considering the high prices of rented apartments that are owned by the so called high and mighty,” she said.
A recent report revealed that the minister is leading partnerships with the private sector, local and international investors, to redefine the concept of cities in Nigeria and decongesting city centres and state capitals.
The first phase of one of the ministry’s plan known as the ‘New City Development Plan’, aims to deliver Renewed Hope Cities ranging from 1,000 housing units per site in one location in each of the six geo-political zones of the country and the FCT, namely: Abuja, Lagos, Kano, Borno, Nasarawa, Rivers, and Enugu states, while the remaining thirty (30) states will have Renewed Hope Estates each with a minimum of 500 housing units.
Recently while addressing the media in Abuja, the minister said the Renewed Hope Cities will prioritise inclusivity by featuring multi-level flats to cater for low and medium-income earners.
Subsequent reports also indicated that the ministry aims to deliver 34,500 homes in Phase 1 of the project, funded by a mix of sponsors including the budgetary allocation of the Federal Ministry of Housing and Urban Development, the Federal Mortgage Bank of Nigeria (FMBN) and through Public-Private Partnerships.
While expecting more from the new ministry, it is also very important they hold firmly to the already established fact that access to housing is a precondition for access to employment, education, health, and social services. They should always keep in mind that to address the current housing challenges, all levels of government must put housing at the centre of urban policies by placing people and human rights at the forefront of urban sustainable development.
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