By Cecilia Ogezi
Nigeria, a nation of over 200 million people, exhibits a diverse economic landscape reliant on the importation of essential commodities, including building materials. Research indicates that local building materials account for only 37% of the market, while imported materials constitute 23%, and combined local and imported products make up 62% of the total materials used in the Nigerian construction industry. This dependence on imported building materials presents a significant economic challenge, exacerbating the demand for scarce foreign exchange and contributing to an unsustainable economic trend.
The study conducted by Ugochukwu, Ogbuagu, and Okechukwu (2014) highlights the effects of this importation trend in Akwa Ibom State particularly and in other states in Nigeria revealing both positive and negative impacts on the construction industry.
On the positive side, imported materials contribute to modernization, higher quality, and aesthetic value, increasing property values due to the superior quality of materials. This, in turn, advances the overall urban landscape of the city, leading to increased construction activity and reduced maintenance frequency for buildings and components. Additionally, the use of products with technical data and good value for money promotes advancement in construction methodologies and urban ratings.
However, the negative effects are equally significant. High inflation rates have been a notable consequence, placing considerable strain on the purchasing power of major players in the building industry. This inflation is illustrated by the cost analysis of building materials over the years: the price of cement rose from N1,350 in 2006 to N5,300 in 2023, while the cost of imported floor tiles surged from N2,500 per carton in 2013 to N6,000 in 2023. Such inflationary pressures contribute to the exclusive possession of properties by high-income earners, discouraging local producers and leading to the abandonment of projects due to high tariffs and the high cost of living.
The research further identifies several impediments to the realization of the full potential of locally sourced materials. These include low demand, inappropriate use, and poor product quality. The study emphasizes the need for collaboration between Nigerians, entrepreneurs, foreign investors, and research institutions like the Nigerian Building and Road Research Institute (NIBRRI) to promote sustainability in the local building materials industry. Additionally, the government and partner agencies must create a conducive environment for indigenous industrialists and investors to harness the country’s rich natural and human capital.
Recently, Festus Adebayo, Executive Director of Housing Development Advocacy in Nigeria and Africa and Coordinator of the Africa International Housing Show (AIHS), reiterated that addressing housing challenges requires the government and private sector to focus on local production of building materials.
To mitigate the adverse effects of building material importation, the government needs to revisit the local content bill, developing strategies to sustain local content and encouraging existing local manufacturers to upscale and maintain standards across all products. Achieving this will require a coordinated effort to foster innovation, enhance product quality, and reduce the dependency on imported building materials, thereby promoting economic stability and growth within the construction industry in Nigeria.