The Federal Government has unveiled plans to establish building materials hubs across Nigeria in a move aimed at reducing the high cost of construction and boosting the housing sector. The initiative, announced by the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, is part of the government’s broader effort to make homeownership more affordable for Nigerians.
Speaking at a stakeholder meeting in Abuja, Dangiwa noted that rising inflation and foreign exchange fluctuations have contributed to the escalating costs of cement, steel, tiles, and other essential building materials. He explained that the proposed hubs will serve as centralized supply centers where materials can be accessed at subsidized rates, reducing the financial burden on developers and home builders.
“The high cost of building materials is one of the biggest challenges affecting housing affordability in Nigeria. These hubs will provide a stable supply of essential materials at reasonable prices, ensuring that more Nigerians can build and own homes,” Dangiwa said.
According to the minister, the hubs will be strategically located in different geopolitical zones to facilitate easy access for construction firms and individual homebuilders. The government will partner with private sector investors to ensure steady production and distribution of materials.
The initiative will also promote the use of locally sourced building materials, reducing Nigeria’s dependence on imported products and boosting the domestic manufacturing sector. Additionally, small and medium-sized enterprises (SMEs) in the construction industry are expected to benefit from lower procurement costs, enabling them to expand operations and create more jobs.
Housing experts have welcomed the initiative, but some have cautioned that implementation will require strict monitoring to prevent hoarding and price manipulation by suppliers. Others have urged the government to complement the policy with increased investments in infrastructure, such as roads and electricity, to further reduce construction costs.
The ministry has assured that it will work closely with industry stakeholders, including real estate developers, cement manufacturers, and financial institutions, to ensure the success of the project. Construction of the first set of hubs is expected to commence in the second quarter of the year.