EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT IN NIGERIA

EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT IN NIGERIA

ABSTRACT

The escalating cost of building materials presents a significant challenge to housing development in Nigeria, impacting affordability, accessibility, and the overall growth of the construction industry. Building materials, which constitute a major portion of housing construction costs—estimated between 50% to 65% of total project expenditure—directly influence the feasibility of residential development projects. This study investigates the effects of rising material costs on housing delivery, explores the underlying factors contributing to price inflation, and identifies sustainable strategies to reduce costs and improve housing accessibility.

Adopting a mixed-method approach, the research combines literature review, field surveys, and expert consultations to examine the cost dynamics of commonly used building materials such as cement, steel, and timber. The findings reveal that high taxation, limited local production, reliance on imported materials, inflation, and market instability significantly contribute to rising costs, thereby limiting housing development for low- and middle-income households. The study recommends policy interventions such as tax incentives for local manufacturers, investment in local material production, and adoption of cost-efficient sustainable materials. Implementation of these strategies can enhance the affordability and availability of housing, stimulate construction sector growth, and support Nigeria’s broader socio-economic development.

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

The construction of residential housing in Nigeria is heavily influenced by the cost of building materials, which constitutes a major portion of total project expenditure. Research indicates that between 50% and 65% of the total cost of housing projects is spent on materials alone (Adedeji, 2010; Arayela, 2005; Ogunsemi, 2010). The high cost of these essential inputs has slowed the growth of Nigeria’s housing sector, limiting access to affordable housing for the general population.

Historically, local building materials were inexpensive and widely available, enabling affordable housing delivery. However, globalization, urbanization, and changes in professional training have shifted preferences towards sophisticated and often imported materials, increasing construction costs (Adedeji, 2002; Arayela, 2002). Modern construction now emphasizes advanced materials and techniques, which, although improving durability and aesthetics, require higher financial investment and energy consumption.

Sustainable building practices emphasize the efficient selection of materials with minimal environmental impact throughout their lifecycle. For instance, González and Navarro (2006) demonstrated that selecting low-impact building materials could reduce CO2 emissions by up to 30%. Similarly, the use of recycled or renewable materials contributes to sustainable development while potentially reducing costs (Chwieduk, 2003). In Nigeria, however, the cost of building materials continues to impede housing development, particularly in urban centers, where affordability remains a pressing concern.

The choice of materials is influenced not only by cost but also by social and environmental considerations, such as thermal comfort, structural durability, aesthetics, and ease of construction (Abeysundara et al., 2009). Without addressing the high cost of materials and ensuring sustainable sourcing, housing delivery remains constrained, limiting the potential for equitable access to quality residential structures.

1.2 Statement of the Problem

Building materials are indispensable to the construction industry, determining both the quality and feasibility of residential projects (Akanni, 2006; Udosen & Akanni, 2010). The rapid increase in material prices poses a significant challenge to housing development, delaying project completion and making residential units unaffordable for the average Nigerian household (Anosike, 2009; Mekson, 2008).

For example, the price of cement increased from ?1,350 in 2006 to ?2,000 in 2015, representing a 48% increase over nine years (field survey, 2015). Such inflation affects construction costs across the housing sector, contributing to high rents and property prices, thereby limiting accessibility for low- and middle-income earners. While previous studies have examined the causes of rising material costs (Jagboro & Owoeye, 2004; Njoku, 2007), there is limited research on the direct impact of these costs on housing development and affordability.

This study addresses this gap by investigating how fluctuations in building material prices affect housing delivery in Nigeria and by proposing strategies to mitigate the associated challenges.

1.3 Objectives of the Study

The study aims to examine the relationship between building material costs and housing development in Nigeria. Specific objectives include:

1. To assess the effect of building material costs on housing development and affordability.

2. To identify the key factors driving the high cost of building materials in Nigeria.

3. To propose strategies for reducing material costs and promoting sustainable housing development.

1.4 Research Questions

The study seeks to answer the following questions:

1. How do building material costs affect housing development in Nigeria?

2. What factors contribute to the high cost of building materials in Nigeria?

3. What strategies can be implemented to reduce building material costs and enhance housing affordability?

1.5 Hypotheses

HO: The cost of building materials does not significantly affect housing development in Nigeria.

HA: The cost of building materials significantly affects housing development in Nigeria.

1.6 Significance of the Study

The study holds significance for multiple stakeholders:

• Policy Makers and Government: Insights from the research can guide policies to reduce material costs through tax incentives, local production support, and regulation of import practices.

• Construction Industry: Developers, architects, and contractors can adopt cost-efficient material strategies and sustainable building practices, improving project feasibility and affordability.

• Academic Community: The research serves as a resource for future studies on construction economics, sustainable housing, and affordable residential development.

• Public Awareness: By highlighting the relationship between material costs and housing affordability, the study informs the general populace about factors influencing property prices and potential interventions.

1.7 Scope and Limitations of the Study

This study focuses on the impact of building material costs on housing development in Nigeria, particularly in urban centers where affordability is a major concern. It examines commonly used construction materials, including cement, steel, timber, and aggregates, and evaluates their influence on housing delivery.

Limitations include:

• Financial Constraints: Limited funding may affect the collection of comprehensive data on material prices and construction projects.

• Time Constraints: Concurrent academic responsibilities may reduce the time available for fieldwork and data analysis.

• Data Access: Difficulty in obtaining accurate historical price data and project records may limit the precision of the findings.