Petrol price hikes worsening Nigeria’s housing crisis — Adebayo

The Executive Director of the Housing Development Advocacy Network (HDAN), Festus Adebayo, has raised concerns about the rising cost of petrol, stating that it is exacerbating housing challenges.

He explained that the increase in prices has made home ownership increasingly unattainable for millions of Nigerians.

Research indicates that the steady spike is causing a ripple effect in the economy, with the housing sector being one of the most severely impacted.

Adebayo noted that industry stakeholders identified petrol as a central factor in transportation, construction, and production, making it a significant driver of escalating building costs across the country.

“Investigations show that the costs of building materials such as cement, iron rods, tiles, and fittings have surged in recent months, primarily due to increased transportation costs linked to higher fuel prices,” he said.

Contractors and developers have reported sharp increases in logistics expenses, causing suppliers to pass these costs on to end-users.

Adebayo emphasised that construction activities, which heavily rely on petrol and diesel-powered equipment, have become more expensive.

“There is hardly any aspect of construction that is not affected by fuel prices. From transporting materials to powering machinery, everything now costs more,” Adebayo quoted a Lagos-based developer as saying.

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Additionally, he pointed out that rising petrol prices have led to increased labour costs, as workers demand higher wages to compensate for escalating transportation expenses.

To cope with the rising operational costs and economic uncertainty, property developers are raising prices. Adebayo stated that increased project costs, expensive financing, and higher risk exposure are forcing developers to price housing units beyond the reach of average Nigerians.

Consequently, homes that were once considered affordable for middle-income earners are now primarily targeted at high-income buyers.

Stakeholders argue that the housing crisis cannot be effectively addressed without aligning fuel and housing policies. They are advocating for increased investment in mass transit systems to reduce commuting costs and enhance access to affordable housing.

Recommendations also include supporting local production of building materials, promoting energy-efficient housing solutions, and implementing targeted interventions for low-income housing schemes.