NAIRAMETRICS: Addressing the Surge in Real Estate Construction Costs in Nigeria

The surge in demand for housing and infrastructure in Nigeria has ushered in unprecedented challenges for builders and developers, particularly due to the substantial rise in the cost of construction materials. This surge affects critical elements such as Sharp Sand, Plaster Sand, Granite, Cement, Iron, Tiles, Blocks, and Diesel, significantly impacting the construction process.

NAIRAMETRICS

5/8/20241 min read

My recent experience negotiating with an iron vendor sheds light on the severity of the issue. Previously stable at N310,000 per ton, the price of iron has skyrocketed to a staggering N1.5 million per ton.

This drastic increase has created a complex negotiation process, requiring delicate management of expectations amidst financial constraints.

To tackle the surge in real estate construction costs, the government must adopt a comprehensive strategy.

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a very tall building with lots of windows
a very tall building with lots of windows