Building better, cheaper: Harnessing local manufacturing for affordable housing in low-income economies

As housing shortages and rising construction costs continue to challenge communities worldwide, the need for innovative and affordable housing solutions has become increasingly critical. In low-income economies, where the majority of the population struggles with housing affordability, the situation is even more dire.

Nigeria faces a significant housing deficit, with approximately 4.5 million people considered homeless and over 60 percent of urban dwellers living in informal settlements or slums. The country has an estimated 28 million housing deficit, requiring a staggering N21 trillion in investments to bridge the gap.

At the 18th Africa International Housing Show in Abuja on July 24, 2024, I addressed this pressing issue in my presentation titled “Building Better, Building Cheaper: Local Manufacturing of Building Components for Housing in a Low-Income Economy.”

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My presentation underscored the potential of using alternative building materials and local manufacturing to revolutionise the housing sector, particularly in low-income economies.

I highlighted the advantages of materials such as shipping containers, bamboo, reclaimed timber, mudbrick, prefabricated panels, and plastic bricks. These materials offer not only cost efficiency but also environmental sustainability.

For instance, bamboo is strong, renewable, and sustainable, while mudbrick, made from a mixture of clay, sand, straw, and water, has been used for centuries in Nigeria, providing a culturally relevant and sustainable building option.

The benefits of using alternative building materials are numerous. Many of these materials are often cheaper than traditional materials like concrete and steel. This cost reduction is crucial in low-income economies.

Furthermore, these materials usually have a lower environmental impact. They are typically sourced locally, which reduces transportation costs and supports local economies. As I noted, “local availability not only cuts costs but also fosters community involvement and boosts local economies.”

My presentation drew on lessons from countries successfully implementing affordable housing solutions. Key strategies include strong government support and incentives, attracting foreign direct investment, and large-scale production of prefabricated housing materials.

These approaches have enabled the construction of quality housing at lower costs and on a larger scale. Strong government policies and incentives can significantly drive the affordability agenda.

The Lekki Free Zone (LFZ) successfully leverages local manufacturing and international investment to boost economic growth and development. Established as a joint venture between the Lagos State government and Chinese state enterprises, the LFZ spans 3,000 hectares in the Ibeju Lekki axis, providing a one-stop shop for 65 free zone enterprises.

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The LFZ’s role in promoting ease of business, with facilities such as a customs processing centre, access to 24-hour electricity powered by gas, and proximity to the Lekki Deep Sea Port, cannot be overemphasised.

The presence of manufacturers such as Huachuang Steel Engineering FZE, Aslan Nigeria FZE, Henan D.R. Construction of FZE, and Nikhar Wood FZE within the LFZ illustrates the zone’s capacity to produce a range of building components locally. This local production is crucial for reducing the cost of building materials and making housing more affordable.

Using alternative building materials and local manufacturing has far-reaching implications for housing affordability. By reducing costs, these strategies can make homeownership accessible to a more significant portion of the population.

The combination of cost reduction, environmental sustainability, and rapid construction offered by alternative building materials presents a viable pathway to addressing Nigeria’s housing deficit.

Moreover, the lessons learned from the LFZ and other successful models can be replicated across Nigeria and other African countries facing similar challenges.

Bolatito Ajibode is the Deputy Managing Director of Lekki Free Zone Development Company (LFZDC)