News

Steep Hike In Building Materials Prices Threatens Nigeria’s Real Estate Sector

Published

10 months ago

Feb 25, 2024.

Eko Hot Blog reports that Nigeria’s real estate and construction industry is facing severe headwinds as prices of key building materials have skyrocketed over the past months.

A market survey by Sunday Tribune showed that the price of reinforcement steel bars jumped 100% from N500,000 per tonne in January to N1.2 million in February.

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Cement prices have also surged exponentially, with a bag now costing on average N13,000, up from N2,500 earlier this year. This has left real estate developers and home builders in dire straits.

According to Dr. Aliyu Oroji Wamakko, President of Real Estate Developers Association of Nigeria, “We find it unreasonable to reach N13,000 for a bag of cement. That means you are killing the economy.”

Mrs. Iyabo Bolarinwa, a professional builder, said “With the skyrocketed prices of materials, it would be difficult for everyone to build houses.” She warned that many people will begin cutting corners, leading to more building collapses.

Builders like Atewolara say developers have reduced hiring, while Nike Ayanda, former Chairman of the Nigerian Institute of Quantity Surveyors, confirmed high inflation has slowed the sector. “People are now trying to save money and would not buy quality materials,” she lamented.

Alhaji Sulaimon Alahi Yusuf, President of the Building Collapse Prevention Guild, said the Naira’s sharp fall against foreign currencies has led to astronomical price hikes in building materials. This could accelerate building collapses in coming years, he cautioned.