The federal government of Nigeria need to take urgent steps to look into the worsen situation of the building materials prices in the country before it escalated to the level that are unaffordable to the populace, especially the middle and low-income earners wishing to become a house owner. Nigeria has a housing deficit conservatively estimated at 17 million. Home penetration in the country is just 10 percent, meaning that 90 percent of the population is renting or living in rented according to the chief investment officer at NatanelFlorens, Oguche Aguda.
The housing stock in Nigeria is estimated at 13 million units and only 5 percent of this stock is in formal mortgage. The remaining 95 percent is considered dead assets. Cement price, which is the major componenet of building construction has gone through two significant price hikes in the last ten months, peaking at 87 percent to N2,800 per 50 kilogramme bag, as at June this year.
This is a significant price jump for a building material that was sold for N1,500 per bag in October 2016
In a country like Nigeria where the proportion of the population living below poverty line is estimated at 46 percent and minimum wage is as low as N18,000 per month, thinking of building or buying a personal house has become a tall order under the present high building materials price regime, meaning that more people will continue to be homeless.
This is a situation that has made the building material market scary to middle-income earners in the country. The prices of cables and Harvey roof tiles have gone up by 138 percent and 93 percent to N58,000 per ton and N11,000 per length, respectively, up from N16,000 and N5,700 respectively in June 2016.
The price of Aluminum roofing sheets (0.55mm) has gone up from N1,550 per length in June 2016 to N2,500 per length, representing a 61 percent increase in just 12 months. The price of coloured emulsion paint has risen by 41 percent to N12,000 per bucket, up from N8,500 in June 2016.
Electric sockets have also recorded significant price increase. According to our checks, the price of 13A socket has moved from N950.00 in 2016 to N1,200 as at June this year. Furthermore, the price of a distribution board for electrical fittings has gone up by 13 percent to N45,000 per unit, up from N40,000 in 2016.
Visit the Housing News for more facts and figures on the Nigeria’s housing situation that may worsen over soaring building materials prices. Though economists say inflation is currently moderating on a year-on-year basis, it is yet to show on commodity prices.