‘Too many quacks, unskilled workers in Nigeria’s construction industry’

Michael Oluwafemi Alley is the founder and Principal Architect of The Building Practice Limited, popularly known for many of the eye-catching edifices in Lagos and other parts of Nigeria. With about two decades of building experience, his goal is to ensure that international architectural standards become the norm in Nigeria. In this interview, he tells ROTIMI IGE why the construction sector in Nigeria remains resilient and vibrant, how unprofessional practitioners negatively impact the industry, among other salient issues.

What are the major challenges in the Nigerian construction sector, and how can businesses overcome them?

The construction sector in Nigeria is a very resilient and vibrant industry, which has continued to witness growth despite the difficult economic situation in the country. We have seen the real estate industry which is primarily serviced by the construction sector grow in leaps and bounds to become the third largest contributor to the national GDP as at Q4 2024 with 5.43 per cent of Nigeria’s real GDP coming from this sector of the economy. This growth is fueled mainly by the high demand of housing, housing deficit, demand for luxury apartments and office spaces especially in Lagos and Abuja.

Despite this growth and resilience, the industry continues to struggle with numerous challenges which include the high inflation experienced in the country that has resulted in the high cost of materials and services. The recent hike in the cost of fuel has resulted in the increase in transportation charges and ultimately increase in the cost of goods, with these we have seen construction cost rise by almost 70 per cent within the last 15 months. This makes construction very expensive and unfortunately has led to some unprofessional practices by charlatans who operate unscrupulously in the industry just to maximise profits by all means.

The industry also suffers from insufficient qualified professionals and tradesmen whose input in the design, coordination and execution of projects are very vital. The construction space in Nigeria has too many quacks (unregistered professionals) and unskilled workers who lack the basic relevant training required to produce and deliver acceptable work, so most of our people have to settle for a lot of mediocrity and substandard, non-functional and aesthetically debased buildings.

The industry faces the challenges of frequent collapse which occur in various parts of the country particularly in Lagos state. These occurrences discredit the activities of the sector and its practitioners as well as the professional and regulatory bodies that oversee the sector. The collapses are offshoots of the two points earlier mentioned – use of substandard materials, cutting corners, use of unskilled workers and quacks and poor enforcement of building regulations.

Lastly the industry suffers from the lack of up-to-date technological tools, equipment, techniques and modern alternative materials that are used in other parts of the world. Most times are our markets are filled with substandard and mundane building materials that are provided primarily for the profit of the dealers and not for the advancement of the industry and so our choices are very limited. This is because we do not manufacture most building materials in Nigeria and depend largely on imported items.

 

How has the rise of technology and sustainability impacted construction practices in Nigeria?

Technology has had a huge impact on the construction industry in Nigeria in diverse ways. The industry has benefited in terms of enhanced design capabilities that have been promoted by the use of modern software like BIM tools, efficient project management software which enhance the coordination of conceptualization, designs, documentation, monitoring, scheduling and administration of project for greater productivity.

Sustainability has come to stay in the Nigerian construction industry as many projects are adopting green building measures which enable energy conservation, water conservation, sustainable sites, improved indoor air quality and reduction of energy embodied in materials. All these measures ensure that buildings are sustainable and efficient in diverse ways thereby protecting the environment and also reducing the operational cost of buildings. We have witnessed the rise in the quest for attaining green building certifications particularly through the EDGE and LEED green building standards.  These green building standards are internationally acceptable platforms for certifying buildings green and sustainable which show that they have performed better than conventional buildings in efficiency. The construction industry in Nigeria is benefiting immensely in this regard.

 

How does urbanisation in cities like Lagos and Abuja create demand for specific types of construction projects?

Urbanisation in many cities in Nigeria, particularly in Lagos and Abuja has created a high demand for middle class estates, luxury apartments and short-let apartments. The economies in these cities, the high population and the constant need to provide quality housing for a discerning market has driven up the demand for these types of projects. There are new housing estates and high rise buildings consisting of thousands of dwelling units being built year after year to provide a little fraction of the housing deficit. The introduction of mortgages and flexible payment plans also make it easy for subscribers to purchase apartments in many parts of these cities. In Lagos for example we see the rise in the construction of small apartments that can be used for short-let purposes, a new trend that has become very common to accommodate travelers, tourists and visitors. We saw how profitable this venture was during the ‘Detty December’ of 2024 and I believe that it can be a worthwhile undertaking for investors and developers to take advantage of.

 

What role does government policy and infrastructure development play in shaping the construction market?

It is the duty of the government through the physical planning, development controls and building control agencies to make plans, grant permits and monitor the construction activities in our environment with a view of ensuring that our cities and environments are organized and the standards of construction are upheld in line with the appropriate building codes. The government usually partners with professionals in the private sector of the construction industry to ensure that only the best practices are implemented. Though we have had incidents of failures in many respects as a result of various infringements and violations of laid down laws, the collaboration between the public and private sector agencies can help the construction industry grow and strengthen the trust of the end users of the buildings.

 

How do you advise clients to plan their budgets given the fluctuating costs of materials and labour?

As the cost of construction continues to rise due to the high inflation and instability of the exchange rates of foreign currencies on which importation depends, we advise our clients to make adequate yet flexible plans for their projects which should include complete design documentation and specifications and costing as things are more likely to change than remain constant. Their budgets which must include some contingency sums to cater for unforeseen events. We advise that clients should plan their projects to be time specific and in cases where project funds are available, they can forestall fluctuations and variations by making significant advance payments to contractors who would in turn be able to make bulk procurement of materials and certain services. It is essential for clients to work with qualified and registered quantity surveyors who can help applying cost control measures to ensure that projects are executed within the set budgets and resources are utilised efficiently.

 

How can international investors or developers collaborate with local firms like The Building Practice to harness the industry’s potential?

The real estate market in Nigeria has seen so much progress in the recent years and the growth has been resilient despite the economic realities of the country. The continuous demand for housing and the persistent housing deficit has sustained the need for construction and investments in the sector. The rise of the need for short-let apartments has also significantly increased the vibrancy of the industry with investors and developers interested in getting a slice of this very large and lucrative market. The Building Practice has positioned itself to provide the needed services around design and construction of various building typologies and specifically the residential niche of the market. After being involved in the design, coordination, construction and delivery of various projects, investors can rely on the firm to be a strategic partner in delivering the exact products that the market needs and which can guarantee the expected returns on investment. Investing in real estate goes beyond securing finances, it is essential that experienced professionals consisting of architects/designers, engineers, project managers, cost consultants, development consultants, legal teams, marketers are assembled in order to guarantee successful projects and attract the target market. I can authoritatively say that the market is ripe and a fertile ground for any international investors to capitalise on and we are strategically placed to help them succeed.

 

What steps should aspiring property developers take to enter the Nigerian construction market successfully?

Any property developer who intends to enter the Nigerian construction or real estate market needs to consider a number of factors which include: Location – In the real estate business, location is everything, a development in the right location is on its path to success. Funding – the financing model of any development is key to achieving the required goals, it is important to obtain funding with low interest rates, good moratorium periods, gain access to REITS (Real estate investment trusts), venture capital funding, seek credible joint venture partners and ensure that they have a good exit strategy. Professionals – We always say that for any building project, hiring a qualified architect is the best investment the you can make.

This is because a good architect will ensure that your investment is protected by offering quality designs that suit the market’s requirements, he would ensure that your project is designed to meet the planning regulations and he will be able to coordinate the inputs from all other allied professionals which include the structural engineers, MEP engineers, quantity surveyors and all other relevant consultants. We advise that only duly registered and licensed professionals and firms with the requisite experience are engaged in building projects. Marketing – for any real estate development to succeed the developer must be able to identify segment the market, identify the target customers and position the development in a manner that attracts the desired subscribers. It is necessary to invest heavily in marketing and advertising to ensure that the message hits the right targets.

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What makes The Building Practice unique in the construction industry in Nigeria, and how does your approach distinctively address the needs of clients?

The Building Practice Ltd is a distinct player in the Nigerian construction and real estate market in the sense that it is a firm that offers a wide spectrum of services geared towards the successful implementation of real estate developments. The firm offers, real estate feasibility studies to give developers a complete overview of their developments taking into consideration the various parameters required for a project to take off and be executed comprehensively. The Building Practice being one of the foremost architectural companies in Nigeria, provide total architectural and design services that are always compliant with the Nigerian and the international building codes (IBC). In addition to these services the firm is big advocate of sustainable architecture and ensure that every project meets the minimum green building standards of EDGE and LEED; and because the firm has five EDGE Experts and two LEED professionals we are able to obtain certification for our projects. The firm has four registered project management professionals who offer project management services that are absolutely necessary for the smooth running of any construction project. Lastly, The Building Practice is able to proffer solutions in the area of fire and life safety in buildings through their vast knowledge of the requirements of the international fire code and the registration with the national fire protection Association NFPA. We actively collaborate with other local and international studios and a diverse portfolio of allied professionals to ensure that our clients get the best results out of our engagements.

All these attributes position The Building Practice Ltd as a strategic and emerging leader in the construction and real estate industry in Nigeria.