With costs soaring and local factories shutting down, housing delivery in Nigeria is trapped in a cycle of high prices, low output, and widening inequality, reports Chinedum Uwaegbulam.
Nigeria’s housing deficit, estimated at over 28 million units, is worsening as the domestic building materials industry buckles under energy shortages, forex scarcity, and stiff competition from imports. Once envisioned as the backbone of affordable housing delivery, the sector is collapsing driving up construction costs, stalling projects, and locking millions of families out of home ownership.
Spiraling Costs and Stalled Projects
Across major cities, the impact is glaring. The price of cement has nearly doubled from N5,500 in 2023 to over N10,000 in 202. while iron rods have jumped from N2,000 to nearly N18,000. Developers are abandoning projects midstream, private builders are cutting corners with substandard materials, and renters are squeezed, spending up to 60% of their income on housing.
In Lagos suburbs like Ikotun and Ipaja, a two-bedroom flat that cost N15 million in 2023 now sells for N30–35 million, while annual rents for one-bedroom apartments in Lekki-Ajah have climbed to N2.2 million.
With less than 100,000 housing units delivered annually against a demand of 700,000, the affordability crisis has become a social emergency in both Lagos and Abuja.
Factories in Ruins
The collapse cuts across industries once meant to anchor the economy:
Steel: The Ajaokuta Steel Mill, envisioned as West Africa’s largest industrial project, operates at less than 5% capacity, while rolling mills nationwide have shut down due to high energy costs.
Ceramics: Tile and sanitary ware factories in Kogi, Ogun, and Plateau have closed, leaving Nigeria dependent on imports that now account for over 80% of the market.
Glass & Aluminium: Plants in Rivers and Ogun operate sporadically, with producers reduced to import-dependent finishers.
Timber & Wood: Illegal logging, poor processing, and weak investment have crippled the timber industry, forcing furniture makers to rely on imports.
Paint producers, meanwhile, face rising taxation, soaring input costs, and forex volatility. “Whenever the naira slides, the cost of paint products shoots through the roof,” said Jude Maduka, Executive Director of the Paints Manufacturers Association of Nigeria (PMA).
A Struggling Industry Speaks Out
The Building Materials Producers Association of Nigeria (BUMPAN) blames persistent energy costs, forex scarcity, poor infrastructure, and multiple taxation for crippling the sector. “High energy costs alone make it almost impossible for our members to remain profitable,” said BUMPAN President, Abdulhakeem Huthman.
He linked the collapse of local production directly to the housing affordability crisis, citing job losses, declining government revenues, and shrinking investment.
Government’s Rescue Plan
In response, the Federal Government has announced plans to establish Building Materials Manufacturing Hubs across all six geopolitical zones, including Sagamu, Aba, Warri/Asaba, Ajaokuta, Kano, and Gombe. The hubs will operate as industrial parks with shared infrastructure, energy access, vocational training, and logistics support.
Officials say the initiative, coupled with fiscal incentives such as tax breaks, duty waivers, and subsidised loans, will reduce production costs and stimulate affordable housing delivery.
Some manufacturers have begun sourcing raw materials locally, with local sourcing in paints and glass rising from 52% in 2023 to 57% in 2024.
But stakeholders remain cautious. “What we need is delivery, not declarations,” warned housing policy expert, Dennis Okafor. “Without stable energy, incentives, and strong monitoring, we risk another cycle of abandoned promises.”
Local Alternatives and Changing Attitudes
While the mainstream industry falters, innovators are experimenting with alternatives such as compressed earth blocks, interlocking bricks, and recycled plastic roofing tiles. Former BUMPAN president, Rufus Akinrolabu, urged Nigerians to embrace local solutions:
“With a little cement, we can make durable laterite bricks that last decades. But many dismiss them as archaic because they prefer imported finishes. Necessity should be our mother of invention we cannot solve a 28-million-unit deficit by importing everything.”
The Bottom Line
Experts agree: the collapse of Nigeria’s building materials sector is not just an industrial setback it is the beating heart of the housing crisis. Until government reforms take root, energy stabilises, and Nigerians embrace local innovations, the dream of affordable housing will remain out of reach.
Source: The Guardian
