High cost of building mateirials hurting property market, says expert

Concern has been raised following the rising cost of building materials in the country.

According to the industry’s expert, Oyewole, the escalating cost of building materials is hurting the sector, also fueling high cost of housing and rental values.

As a way out, he wants government to implement the local content policy in housing production.

“If we still solely depend on expensive sandcrete blocks, imported sanitary wares, imported tiles and imported roofing sheets for our houses, the cost will be exorbitant.

“We must learn how to use timber partitioning and clay walls and roofing sheets to make our houses cheaper,” he said.

Besides, he enjoined government to assist Nigerian companies producing building materials like tiles, electrical cables, sanitary wares and furniture and fittings.

However, to enhance home ownership among Nigerians, Oyewole said the Federal Mortgage Bank of Nigeria (FNBN) should aggressively shop for its fund from federal ministries pension fund and investment cooperative societies of organisations like NNPC, Nestle, Unilever, Cadbury, Nigerian Ports Authority etc.

To reposition FMBN for better performance, he suggested that the Federal Government should commercialise the bank with strong law that it won’t turn into commercial bank.

“It can only act as bankers to primary mortgage institutions and private property developers,” he said

He said the real estate industry should leverage On the diaspora fund.

“In 2022 the amount of diaspora fund that was remitted to Nigeria was more than the amount earned through crude oil sale. Federal Government can also sell its abandoned properties to develop residential buildings for the masses,” Oyedele said.