FG mulls setting up building material hubs to tackle housing affordability issues

The federal government says plans are on the table to set up building materials manufacturing hubs in each of the six geo-political zones of the country to reduce input costs and make houses affordable for those who need them.

Besides costs of land and funds, building materials, whose prices have hit the roofs in recent times on account of inflation, constitute a significant percentage of construction costs, thereby jerking up house prices and putting them beyond the reach of many.

To underscore the seriousness attached to this plan, government says there will be series of fiscal incentives to support it, including tax reductions for local manufacturers, customs duty waivers for importing machinery and raw materials, grants and subsidies to scale up production, access to low-interest financing, and Public-Private Partnerships (PPP) to drive innovation.

Ahmed Dangiwa, Minister of Housing and Urban Development, who disclosed this plan and the incentives, added that the manufacturing hubs would be strategically located within existing trade zones to take advantage of tax incentives, reduce regulatory bottlenecks, and enhance market access.

The minister spoke at a high-level stakeholders’ engagement on Thursday in Lagos with the theme, ‘Actualizing the Renewed Hope Agenda for Housing and Urban Development: Examining Strategies, Identifying Opportunities to Boost Scale and Impact.’

It gathered key players from the housing sector to deliberate on strategies for boosting local production and reducing construction costs.

Dangiwa assured that the hubs would significantly lower the cost of building materials and would ultimately improve housing affordability.

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“Boosting local production and implementing strategic fiscal incentives will not only cut construction costs, but also make housing more accessible to millions of Nigerians,” he said.

Abdullahi Ata, Minister of State for Housing and Urban Development, provided further insight, revealing that the hubs would be set up in Abia, Ogun, Kwara, Kano, Gombe, and Delta States, each serving its respective geo-political zone.

“These hubs will not only increase production capacity but also promote vocational training and spur innovation in the building materials sector,” Ata noted.

To oversee the implementation of the project, the Federal Ministry of Housing and Urban Development will establish a central oversight committee chaired by the Minister, with representation from state governments, universities, vocational institutions, and industry unions.

Victor Umeh, Vice Chairman of the Senate Committee on Lands, Housing, and Urban Development, pledged the National Assembly’s support in providing the necessary policy framework to ensure the initiative succeeds.

“We will champion legislative incentives such as tax relief, import duty waivers, and access to affordable financing to enable these hubs to thrive,” Umeh assured.

Similarly, Abiante Awaji, Chairman of the House Committee on Regional Planning and Urban Development, urged stakeholders to focus on practical and sustainable solutions that will have a lasting impact on Nigerians.

Shuaib Belgore, Permanent Secretary of the Ministry, emphasized the importance of the engagement as a platform to attract investment and foster innovation in the local building materials industry.

“We need to explore policies that enhance local production, improve infrastructure, address energy costs, and promote the use of alternative building materials,” Belgore stated.