FG Finally Moves to Lower Building Material Costs as House Rent Skyrockets
- The government is working hard to establish facilities for the manufacture of construction materials
- It stated that this will significantly raise the affordability of homes in Nigeria by reducing the cost of building materials
- This is expected to assist producers in meeting the rising demand for building materials while also increasing capacity and reducing prices
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Ahmed Dangiwa, minister of housing and urban development has said the government is making a concerted effort to create centres for the production of building materials.
Source: Getty Images
Dangiwa clarified that the Federal Government's plan to set up manufacturing centers for construction materials in six geographical zones was intended to lower building material costs and greatly increase home affordability in Nigeria. The Punch reported.
During a recent ministry-organized meeting with housing industry stakeholders at the Radisson Blu Hotel in Ikeja, Lagos, with the theme "Development of Fiscal Incentives for Manufacturers of Local Building Materials Components in Nigeria," the minister made this claim.
He said,
“Local production of building materials will directly contribute to reducing the cost of construction, thereby making housing more accessible to the average Nigerian. This aligns with the Federal Government’s commitment to providing affordable housing for all. The government is actively working to establish building materials manufacturing hubs across the country. These hubs will serve as centralised locations where manufacturers can access shared infrastructure, reduce production costs, and benefit from economies of scale.
“The rationale behind this initiative is clear: by clustering manufacturers in designated hubs, we can create a synergistic environment that fosters collaboration, innovation, and efficiency. These hubs are to also provide access to modern technology, training programmes, and research and development facilities, enabling manufacturers to produce high-quality materials that meet international standards.
“Moreover, the hubs will be strategically located to ensure easy access to raw materials and distribution networks, further reducing transportation costs and enhancing competitiveness. In this regard, the suggestions yesterday that these hubs should be established in existing free trade zone areas are worthy of serious consideration. Free trade zones already offer significant advantages, such as tax incentives, reduced regulatory burdens, and access to markets. By leveraging these zones, we can accelerate the establishment of manufacturing hubs, reduce initial setup costs, and attract both local and foreign investments.”
Another feasible alternative, according to Dangiwa, is to enable manufacturers of essential commodities, such as cement, to expand their operations in their current sites.
These incentives could include tax holidays or lower tax rates for domestic producers, waivers of customs duties on the importation of raw materials and machinery, grants and subsidies to increase production, access to low-interest loans for affordable financing, and public-private partnerships to spur innovation and expansion, he said. I have no doubt that this session will cover additional ground on this topic.
Source: Getty Images
“In conclusion, the development of fiscal incentives for manufacturers of local building materials is not just a policy option; it is a necessity for the growth of our economy and the realisation of our housing goals,” Dangiwa stated.
Fashola, experts push for monthly rent payment system
Legit.ng reported that the former Lagos State Governor, Babatunde Fashola, along with real estate professionals, has suggested that Nigerians should pay rent monthly instead of yearly.
They shared this idea at the Wemabod Real Estate Outlook 2025 event in Lagos, which focused on how real estate can help Nigeria’s economy recover.
Fashola, who once served as Minister of Power, Works, and Housing, said that if rent payments align with monthly salaries, it could help control inflation and might even reduce it.
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Source: Legit.ng
