Dearth of skilled labour and the use of substandard building materials have been blamed for the crisis in the housing sector in Nigeria as reflected in the high incidence of construction failures.
Benjamin Onigbide, the chief executive officer (CEO) of Sigvent Industrial Cluster Limited, who laid this blame in an interview with BusinessDay recently, stressed that reliance on unqualified artisans and the widespread use of inferior materials are critical factors undermining the safety and durability of housing projects across the country.
He warned that without addressing these issues, Nigeria’s housing sector will continue to face significant challenges, highlighting building collapse incidents, regulatory challenges and fluctuating foreign exchange rates on construction costs as the sector’s major issues.
Onigbide, who describes himself as a real estate economist, emphasized that the high rate of building collapse in Nigeria is primarily due to a combination of technical and financial shortcomings.
“Many of the artisans involved in construction are not adequately trained, leading to substandard work,” he explained, noting that developers often prefer foreign workers, particularly from neighbouring countries like Benin Republic, due to the superior quality of their craftsmanship.
Read also: How the housing deficit challenge in Nigeria can be mitigated, by Onyekachi.
He also highlighted economic pressures faced by both developers and homeowners, pointing out that the desire for cheaper housing often leads to the use of inferior materials, which compromises the integrity of buildings.
“When people opt for lower-quality materials to cut costs, the risks of structural failures increase,” he warned.
Addressing the issue of regulatory enforcement, Onigbide acknowledged that while there are institutions in place to oversee construction quality, the effectiveness of these bodies is often undermined by corruption and a lack of strict enforcement.
“Even when regulatory agencies issue stop-work orders, construction often continues due to bribery or connections,” he noted.
He also called for stricter enforcement and collaboration with organizations like the Real Estate Developers Association of Nigeria (REDAN).
“Most building materials are imported, and with the naira’s volatility, the cost of construction has skyrocketed,” he said, adding, “this has led to conflicts between developers and buyers, particularly when initial price agreements can no longer be honoured due to increased costs.”
To mitigate these challenges, Onigbide advocated for the adoption of local materials and technologies.
He mentioned the potential of compressed earth bricks and other alternative construction materials as cost-effective solutions that could reduce dependency on imported goods.
Regarding the federal government’s “Renewed Hope” housing initiative, Onigbide expressed cautious optimism.
Read also: Nigeria’s housing deficit: Challenges and possibilities
While he praised the policy’s goals, he stressed the importance of public-private partnerships and the need for local governments to actively participate.
“If implemented correctly, this policy could help bridge the housing deficit, but it requires collaboration and commitment at all levels,” he said.
Onigbide also touched on the challenges within Nigeria’s mortgage system, noting that while it has potential, there is a significant lack of awareness among the general population.
He argued that the system currently favours salaried workers and overlooks informal sector workers, who make up a large portion of the economy.
“The mortgage system needs to be more inclusive, capturing those in the informal sector who also have significant financial power,” he suggested.
Onigbide called for a comprehensive approach to addressing the issues plaguing Nigeria’s housing sector, emphasizing the need for improved training, stricter enforcement of regulations, and the adoption of innovative, cost-effective construction methods.
