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Following quite a while of national lockdown, development firms and property designers that kicked off activities in most Nigerian urban areas are frightened by a sharp spike in building materials, particularly concrete, steel and paint costs, with specialists encouraging the legislature to start arrangements with makers to get control over costs.
The lockdown has kept on devastating organizations in significant urban areas and influencing development laborers. In the last check, in excess of 10,000 specialists in ventures are out of occupations. Be that as it may, with the facilitating of the lockdown, a portion of the development firms and property designers are slowly returning to their locales in Lagos, Abuja, Port Harcourt, Kano, Kaduna and Aba.
Another turn in the coronavirus pandemic is the shortage of imported development materials, which has raised items by 5-10 percent over the costs of March. There are likewise climb in the costs of privately made items, for example, concrete, steel and paints.
What is worrying property developers and construction firms are the increase in rates for a truck of sand and granite, which comes from across inter-state borders. In some circumstances, authorities at the checkpoints are stopping and seizing trucks carrying sand and granite.
Dealers and manufacturers are blaming the high exchange rate of the naira to the dollar and increase in haulage costs. The new prices have taken most firms to the drawing board and delayed their openings. Operatives say some contractors may seek review of contract due to supply chains disruption, shortage of subcontractors and materials, and the termination of contracts to control expenses.
The Executive Secretary, Paints Manufacturers Association of Nigeria (PMA), Mr. Jude Maduka who confirmed an increase in paint products by member companies told The Guardian, the price hike is inevitable for the industry’s survival.
He stated that 70 per cent of raw materials used in the production of paints are imported, adding that the dollar to naira exchange rate has worsened the plight of manufacturers,
A top individual from the Real Estate Developers Association of Nigeria (REDAN) and Chairman, Board of Trustees, Prince Oluseyi Lufadeju stated, endeavors of the considerable number of partners in lodging industry ought to be focused at empowering and guaranteeing that the greater part of building materials utilized in different tasks are privately sourced.
Lufadeju focused on that “it is not, at this point whimsical to depend on imported structure materials for ventures in the nation. The conclusion of the ports unquestionably influenced some imported materials from coming in. Exploiting circumstances like this, a few dealers raised their costs in any event, when all building locales were lockdown.
“Designers are modifying themselves to the circumstance and certainly house costs will go up accordingly. The huge exercise, notwithstanding, is that COVID 19 has imparted signs for everyone to act naturally dependent. Indeed, even concrete that is delivered locally, wood items, rock and other structure materials have their costs expanded because of the lockdown. This happens at whatever point individuals attempt to exploit occasions and circumstances.
“At last, our best reaction is to continue depending on privately delivered materials. In the long run, we will act naturally adequate and glad in saving remote trade just as utilize our own items, which are truly solid, solid, sturdy and cost-proficient.”
He suggested that government apart from formulating policy on the promotion and use of local materials should empower the research and development institutions, entrepreneurs, banks, especially the development banks to deliberately pay attention to the promotion of local building materials.
A former president of the Nigerian Institute of Quantity Surveyors (NIQS), Mr. Segun Ajanlekoko, traced the problem of building materials’ scarcity to lockdown and long delays that are bound to occur to import goods as well as the further devaluation of naira against the dollar.
Ajanlekoko, who doubles as the President, Commonwealth Association of Surveying and Land Economy (CASLE), urged the government to embark on creating economic stimulus for the construction sector to cushion the effect on the cost of materials and ensure that Central Bank of Nigeria (CBN) doesn’t allow the dollar to be devalued.