EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT IN NIGERIA

ABSTRACT

Building materials constitute the largest portion of housing construction costs, often accounting for 50–65% of total expenditure, and significantly influence housing development in Nigeria. Escalating prices of cement, steel, timber, and other essential materials have increasingly constrained the ability of individuals and developers to construct affordable housing, thereby exacerbating the housing deficit in urban and semi-urban areas. Factors such as inflation, import tariffs, supply chain inefficiencies, and reliance on imported materials have contributed to the volatile cost of building materials. This study examines the effect of building material costs on housing development, identifies the factors driving price increases, and explores strategies to mitigate these challenges. By analyzing both economic and technological considerations, including the potential for sustainable local material use, the research aims to provide actionable recommendations for policymakers, developers, and industry stakeholders to reduce housing costs, improve accessibility, and enhance sustainable housing delivery in Nigeria.

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background to the Study

In the Nigerian construction industry, building materials represent the most significant input in housing projects, typically comprising 50–65% of total construction costs (Adedeji, 2010; Arayela, 2005; Ogunsemi, 2010). The high cost of materials is widely recognized as a major factor impeding the growth of the housing sector and limiting access to affordable housing for the majority of Nigerians.

Historically, local materials were easily accessible and cost-effective, allowing for the construction of adequate housing at relatively low expense (Adedeji, 2002). However, globalization, technological advancement, and changing consumer preferences have increased demand for imported and technologically sophisticated building materials, resulting in higher construction costs (Arayela, 2002). Modern construction now relies heavily on materials that are expensive, energy-intensive, and often imported, creating barriers to large-scale affordable housing.

Sustainable construction practices, including life-cycle assessment of building materials and the use of recycled or renewable resources, have been shown to reduce environmental impact and cost over time (González & Navarro, 2006; Chwieduk, 2003). Factors such as durability, thermal performance, aesthetic value, and construction speed are also critical in material selection, yet affordability remains a key determinant. Persistent price fluctuations, often linked to taxation, import duties, and market inefficiencies, continue to drive up the cost of housing in Nigerian cities (Arayela, 2002).

1.2 Statement of the Problem

Building materials are indispensable in housing construction, directly affecting both quality and cost. Rising material costs have become a significant constraint for developers and prospective homeowners, limiting housing supply and delaying project completion (Akanni, 2006; Anosike, 2009; Njoku, 2007). For instance, the price of cement in Nigeria increased from ?1,350 in 2006 to over ?2,000 in 2015, representing a 48% increase over nine years. Such escalations directly impact housing affordability and exacerbate urban housing deficits (Jagboro & Owoeye, 2004; Idoro & Jolaiya, 2010).

Although several studies have examined causes of high material costs, little research has focused on the broader implications of these costs on housing development. This study seeks to fill this gap by investigating the effect of building material costs on housing development in Nigeria and proposing strategies to reduce costs and improve housing accessibility.

1.3 Objectives of the Study

1. To analyze the effect of building material costs on housing development in Nigeria.
2. To identify the factors responsible for escalating building material prices.
3. To propose practical solutions for reducing material costs and promoting affordable housing.

1.4 Research 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 material costs and enhance housing development?

1.5 Hypothesis

• HO: Building material costs do not significantly affect housing development in Nigeria.
• HA: Building material costs significantly affect housing development in Nigeria.

1.6 Significance of the Study

1. Public Awareness: Educates citizens on the impact of material costs on housing affordability.
2. Policy Implications: Provides evidence-based recommendations for policymakers to implement measures such as tax relief, subsidies, and local material promotion to reduce housing costs.
3. Academic Contribution: Serves as a foundation for further research on sustainable housing, material efficiency, and construction cost reduction.

1.7 Scope of the Study

The study focuses on the effect of building material costs on housing development in Nigeria, emphasizing price trends, affordability challenges, and strategies to promote sustainable and cost-effective housing delivery.

Limitations of the Study

• Financial Constraint: Limited funding may restrict access to comprehensive data sources, literature, and field surveys.
• Time Constraint: Concurrent academic obligations may limit the duration available for thorough data collection and analysis.