INVESTIGATING THE PROBLEMS FACING HOUSING SECTOR IN NIGERIA
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INVESTIGATING THE PROBLEMS FACING HOUSING SECTOR IN NIGERIA
CHAPTER 1.
INTRODUCTION
1.1 Background of the Study
Every Nigerian resident aspires to own their own home (Alhwish, 2010). However, economic problems began to emerge in Nigeria few years ago, making this ambition extremely difficult to realise. Because these issues are complex, each housing and construction specialist has a different perspective on the root causes.
The primary difficulty that customers confront right now is the dramatic growth in housing and construction prices in Nigeria’s megacities. The current study focusses on housing and construction in Abuja.
Oil production is Nigeria’s principal source of revenue. With Nigeria’s federal capital area experiencing a significant inflow of population, building and housing have emerged as the country’s most important economic sectors following the oil field Badran (2012).
The growth of this industry has coincided with a sharp surge in building and housing prices, particularly in Abuja. This rise has been so severe that “the prices of construction materials are the next crisis of the Nigerian real estate market” (Alhwish, 2010). The causes of these high pricing have yet to be determined, and they may be complex and interrelated.
1.2 Statement of the Problem
The desire for greater development of all types, along with a constrained income supply, has presented the construction sector with a significant challenge in lowering the high cost of housing and building construction. This significant increase has resulted in disinvestment in the building industry and increased investment risk.
One of the major issues in the construction and housing industries can be traced to the effect of the country’s principal industry, oil. According to Badran (2012), “Expectations of rising prices of building materials are in line with the rise of oil.”
As the price of oil rises, more complications arise, which raises building and housing costs even further. As a result, the link between high oil prices and problems in the housing and construction industries is positive (directly proportional).
Other issues include the strong need for development of public works projects, such as schools, hospitals, and infrastructure; and the high demand for housing and construction by Nigerian citizens.
Housing is in short supply in Nigeria. The manipulation and monopoly of providers of cement, steel, and other building supplies, Corruption in monitoring government projects. There is a black market.
The high inflation rate Contractors taking on projects beyond their capacity, speculative purchases, and corruption in the sale of undeveloped land.
1.3 Aim and Objectives
The purpose of this study is to analyse the factors that contribute to the high cost of house building in Nigeria.
The study’s aims are as follows.
To explore the important elements that contribute to a significant increase in housing and building prices in FCT Abuja.
To identify the issues affecting construction costs in Nigeria.
To identify the variables that will assist the government in tackling the major
1.4 RESEARCH QUESTIONS
The following research questions will guide the study:
What are the primary factors contributing to the high cost of housing construction in Abuja, the Federal Capital Territory?
What are the implications of these issues on the housing construction industry?
1.5 Scope and Limitations of the Study
The focus of this research is confined to investigating the key elements that contribute to the high cost of house development in Nigeria and proposing strategies for lowering construction costs.
The study is confined to projects in the Federal Capital Territory of Abuja, Nigeria, due of the researcher’s easy access to information in Abuja.
This study’s target respondents are the three main actors in the construction industry: the client, the consultant, and the contractor.
The following analysis focusses on the current scenario in Abuja, Nigeria. Furthermore, the study focusses solely on residential buildings.
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