EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT IN NIGERIA
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ABSTRACT
This study was carried out on the effect of building material cost on housing development in Nigeria using public and private contractors involving civil engineers and quantity surveyors in Imo State as a case study. Specifically, the study aimed at examining the effect of building materials cost on housing development in Nigeria, determining the factors responsible for the high cost of building materials in Nigeria, and proffering solutions that will reduce the cost of building materials to ensure adequate housing development in Nigeria. The study employed the survey descriptive research design. A total of 50 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that the effect of building materials cost on housing development in Nigeria are fluctuation in construction costs, the volume of construction output is affected, risk of project abandonment, inhibited innovations in construction method, quality of workmanship is affected, and rate of employment is affected. Also, the factors responsible for high cost of building materials in Nigeria are exchange rate of Naira, cost of fuel and power supply, government policies and legislation, scarcity of building raw materials, cost of raw materials, inadequate infrastructural facilities, cost of transportation and distribution, interest rate and cost of finance, cost of labour and plant, local taxes and charges, seasonal changes, and political interference. The study therefore recommends that government should formulate policy that will play down the agitations on the use of imported building materials by encouraging research in the production of local building materials. More so, government should also take drastic steps to reduce the cost of production and transportation of goods by ensuring an adequate supply from the power sector and production of petroleum products through the local refineries as against dependency on importation.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
According to the findings of researchers working in the building sector, between 50 and 60 percent of the overall construction input is allocated to the purchase of building materials. The high cost of these items is reported to have slowed down the expansion of the building and construction sector in Nigeria; as a consequence, there is an urgent need to address the high cost of these products. The house construction industry relies heavily on the supply of various types of building materials. While Adedeji (2010) found that around sixty (60) percent of the overall spending on housing went toward the acquisition of building materials, Arayela (2005) found that the cost of building materials constitute approximately sixty-five (65%) percent of the total cost of construction.
According to Ogunsemi (2010), the primary variables that limit the supply of housing are the components that account for between 50 and 60 percent of the cost of structures. Ogunsemi also came to the conclusion that building materials are the most important of these factors. Therefore, Adedeji (2002) made the correct observation when he stated that the high cost of housing in the country has been one of the primary obstacles to the implementation of effective housing in Nigeria, as seen in the efforts of successive governments. He contended that in earlier times in Nigeria, the expense of a roof over one's head was readily within one's financial means since building supplies could be obtained from the surrounding environment at low prices. Additionally, technology was easily accessible with commensurately straightforward methods. But interaction with the outside world, whether it be through inter-regional or worldwide training of professionals in foreign nations as a result of colonialism, brought about changes to tastes and, as a result, outlooks on the forms that houses may take. Due to these developments, the locally developing building materials were inadequate, while at the same time there was a rise in demand for exotic ones. Accordingly, Arayela (2002) hypothesized that the contemporary building business places a significant focus on the use of advanced, high-priced building materials and procedures that also need a significant amount of energy. Despite the fact that efforts to deliver housing have clearly been hampered by prohibitively high costs of building materials, this problem cannot be reasonably and reliably overcome by simply resorting to the use of locally available materials without due considerations to the applicable initiative, the cost of processing, and the sustainability of the local materials. The effective use of materials is one of the aspects of a building that contributes the most to its eco-friendliness. When selecting building materials, it is important to take into account their potential lifespan in its whole and to pick goods that have the smallest possible negative influence on the surrounding environment. For example, González and Navarro (2006) predicted that building construction materials that have a low impact on the environment can cut carbon dioxide (CO2) emissions by up to thirty percent. Because the life cycle of a building and its components may be closed, there is widespread support for the utilization of renewable and recycled materials (Chwieduk, 2003). The cost of the building materials and the social requirements that must be met, such as thermal comfort, good mechanical properties (such as strength and durability), aesthetic characteristics, and the capacity to be constructed rapidly, are the two most important aspects that play a significant role in the selection process. In an ideal scenario, the integration of all environmental, economic, and social elements may offer a clear description of a material, which in turn aids in the decision-making process about the cost of the materials that are acceptable for structures (Abeysundara, et, al.,2009). The cost of housing for Nigerians in large cities would remain higher unless the price of building materials is subsidized, most likely through tax reductions. Until this happens, Nigerians will continue to pay more. It has been hypothesized that the instability in the price of building materials is a direct consequence of high taxes, which, in turn, has an effect on the cost of lodging in major cities across the country. According to Arayela (2002), many finished housing estates had remained vacant due to the high rental and selling prices associated to them as compared to the little income of the ordinary Nigerian worker. This was due to the fact that the average worker in Nigeria earns very little. In addition to this, he stated that if the government were to be successful in revitalizing our industrial base, the price of building materials would decrease, and a great number of more people would be able to construct homes. As a result, he pleaded with the Federal Government to give tax relief for local producers and importers of building supplies so that the high cost of housing in major cities might be lowered.
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