-By Danlami Nasir Isah
Housing is considered as one of the most essential needs of every human being. Nigeria is battling to bridge the housing deficit, as many citizens still do not have access to decent housing. However, its quest to ensure decent housing for Nigerians is gradually hitting the rocks as the economic situation of the country is posing a challenge.
As such, the rising inflation and other economic factors have resulted in the skyrocketing prices of building materials across the federation. Statistics from the National Bureau of Statistics (NBS) showed that the country’s current inflation rate stands at 18.17 per cent.
The prices of cement and other building materials have risen by about 60 per cent. Other components like sand, blocks, roofing sheets, tiles, paints and wood have witnessed an increase in prices by over 15 per cent in the past one month in cities across the country.
A survey at a construction site in Jahi District of the Federal Capital Territory (FCT) showed that a truck of sand goes for as high as N76,000.
Also, surveys in some north central states like Benue, Kogi, Niger and Plateau showed that the price of a truck of sand goes for as much as N65,000.
In Kano, Ogun and Lagos, respectively, prices of corrugated iron roof sheets per bundle rose from between N17,500 and N18,500 in February to the current rate of N29,500.
The price of floor and wall tiles has also moved up in some locations like Lagos, Onitsha, Oyo and Ogun. A 60 by 60 tile product goes for between N5,500 and 7,500. The 40x40cm sells at between N2,300 and N3,900, while a 25x50cm size is sold for 2,500, depending on the design and quality.
Besides, the prices of paints have also been on the rise since December. For instance, the price of 20 litre emulsion, ranging between N4,500 and N8,000, depending on the brand.
A wholesale paint distributor at the Utako Market in the Federal Capital Territory (FCT), Mr. Ikechukwu Ani, blamed the increase to the scarce forex and the high cost of importing chemicals that are used for the production of paints.
“The price of paint rose generally compared to the market situation last year when 20 litre sold for N5,000,” Ani said.
He added that quality paint products now sell between N6,000 and N6,500, while a four-litre gallon starts from N1,200, depending on the brand as against the former price of between N800 and N900. He said the price fluctuations have impacted negatively on patronage.
Commenting on the development, Musa Sirajo, an estate developer with Billad Real Estate Company said that the high cost of materials will surely reflect in the prices his company will be selling houses.
“High foreign exchange, which affects virtually all imported building materials, would also reduce Return-on-Investment (ROI) in the housing sector,” Sirajo said.
The implications, according to him, will lead to capital flights in the country, coupled with the fact insecurity is on the rice.
“Before now, a house may cost N30 million to construct, but due to inflationary figures, it may now cost up to N50 million to complete. The implication is that the cost of construction has increased,” he added.
Also, at a forum, the immediate past Chairman, Nigerian Institution of Estate Surveyors and Valuers, Lagos chapter, Rogba Orimalade, said the overall monetary policy of the government has not helped.
“We couldn’t separate inflation from the monetary policy that is discouraging saving. When there is a high cost of building materials, one would expect that it would slow down real estate development, but because the monetary policy hasn’t made people to save. People are forced to invest in real estate to protect the value of their currency,” Orimalade noted.