Despite the biting economic effects of the recession in Nigeria, the cost of building a house has continued to rise. Between October 2016 and April 2017, several building materials have become more expensive than they used to be. In October 2016, it cost N2,500 to buy the ¼ white plywood board whereas, in April 2017, the same plywood was sold for N4,200 per unit.
As expected, this holds grave consequences for developers, the government, Nigerians planning to rent or buy property as well as other stakeholders. Industry experts have bared their minds on this topic as seen below:
“When former President Olusegun Obasanjo assumed office in 1999, a bag of cement was sold at N500 per bag. Despite various policies and interventions, if any, the price of cement has continued to rise. It is the same story all over the country. Since 2015, the price of cement has climbed from N1,400 to between N2,500 and N3,000, depending on the location and quality. A bag of cement costs between N2,550 and N2,600 in Calabar, Cross River State, while it costs N2,800 in Aba, Abia State. In Port Harcourt, it is sold at between N2,700 and N3,000, depending on the quality. One can buy a bag for between N2,700 and N2,800 in Jalingo, Taraba State, while it is sold at between N2,800 and N2,850 in Abuja.”
“Another dangerous trend is that many developers and engineers have resulted in cutting corners to ensure that they remain in business in order to feed their families and make ends meet. The resultant effect is that proposed materials may not meet specified standards due to high cost… If you need 3O bags of cement to mix certain measurement of gravel, you may need to reduce to 15 bags in ensuring that projects are not abandoned.”