Nigeria @ 61- Housing stakeholders call on CBN, BOI to do more in assisting local building materials companies
Apart from the satisfaction of meeting a basic need, a thriving housing sector offers
a broad range of economic benefits and it is a critical employer of labour providing multiple direct and indirect jobs. These jobs are not only for professionals like architects, quantity surveyors, and engineers but also for artisans like bricklayers, plumbers, and even general handymen.
Stakeholders in the housing industry have called on the Central Bank of Nigeria and Bank of Industry to create policies and processes that would encourage backward integration as an import substitution policy. According to them, this would boost the confidence of developers to invest in tiles, cable, woodwork, and other building materials companies. The end result would be reduced cost for effective and low-cost housing for Nigerians.
Strong key players in the sector including Babajide Odusolu, CEO, Octo5 Holdings Limited, Mustapha Njie, CEO, TAF Global say housing construction requires different and affordable building materials which result in patronage for small & medium enterprises involved in trading these items as a multiplier effect to boost the nation’s economy.
Taking it further, there has also been the issue of foreign exchange especially with regards to the constant rise and fall of the naira which is currently affecting the prices of building materials in Nigeria.
Stakeholders have also called on relevant players in the public and private sector to create a window that will open up the market for the patronage of indigenous building materials while encouraging governments at all levels to develop and ensure the implementation of friendly policies to attract investors into the market.
Following the construction of a house and sale, the off-takers also engage in purchases of household appliances, furniture, and interior décor to beautify the home and make it comfortable for people to stay.
Prices of essential building components like sand, blocks, roofing sheets, tiles; paints, and wood have witnessed an increase in prices by over 15 percent in the past month in cities across the country. Most of the developers still rely on imported materials.
While some developers call on the national assembly to move for legislation that will help cut the skyrocketing costs of components in building construction including the provision of industrial and larger tax incentives to encourage local investments, others urge the Federal Government to introduce liberal policies to stimulate more investment in the manufacturing of locally made materials.
It is also believed that as housing communities are being developed across the country to accommodate Nigerians and alleviate poverty, there is a need for infrastructure to be put in place such as quality roads, nearby schools, markets, hospitals, recreation centers to boost the confidence of investors and attract more investments into the sector.
