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LAGOS – Nigeria’s 70 per cent reliance on imported building materials is leaving the housing market dangerously exposed to crippling supply and currency shocks, the State of Lagos Housing Market Report, has warned.
According to the report, Nigeria’s abundant raw materials still fall short of reducing reliance on imports due to limited local processing capacity.
It stated, “A staggering 70 per cent reliance on imported building materials exposes the market to global supply chain disruptions and currency volatility.
It reads, “To foster a more stable and efficient building materials market, the report recommends a multi-pronged approach: enhancing local production through manufacturing hubs and incentives, optimising supply chains, implementing consistent policy reforms, promoting sustainable and innovative building practices, and actively attracting both domestic and foreign investment. These measures are crucial not only for stabilising prices but also for addressing Nigeria’s severe housing deficit and ensuring sustainable economic development.
Lagos, as Nigeria’s preeminent economic hub and most populous city, serves as the epicentre of construction and real estate activities within the nation. The dynamics observed in its building materials market often foreshadow or mirror broader national trends, making its analysis critical for understanding the broader Nigerian context. The construction industry across Nigeria is currently on a significant growth trajectory, with projections indicating an annual increase of eight per cent, poised to reach NGN 25.72 tn by 2025. This sector has demonstrated robust expansion, achieving a Compound Annual Growth Rate of 12.1 per cent between 2020 and 2024, with forecasts suggesting a continued ascent at a CAGR of 6.4 per cent from 2025 to 2029, culminating in an estimated value of NGN 35.38 tn by the end of 2029.
“Several factors underpin this market expansion. Rapid urbanisation and a burgeoning population in Lagos are generating substantial demand for new housing units, commercial spaces, and critical infrastructure. Furthermore, government commitment to infrastructure development, exemplified by projects such as the Lagos Rail Mass Transit and various road expansions, is expected to significantly boost property values and overall demand within the construction sector.
“Rising material costs, persistent inflation, bureaucratic impediments, and high financing expenses are recurrent issues in the housing sector. Supply chain disruptions and escalating costs already present significant hurdles, while material costs and currency volatility continue to pose substantial challenges.”
The report further noted that while the construction industry in Nigeria, particularly in Lagos, shows robust growth projections driven by high demand and substantial government investment, this potential is simultaneously constrained by escalating input costs.
