Building materials, labour spike construction cost by 200%

The building and construction industry may be experiencing one of its worst moments as exchange rate, building cost,  and labour prices has triggered an increase in construction by 200% in the last two years.

The exchange rate crises has worsened the woes of the building sector. The direct effect of exchange rate is being felt more on imported materials which represent 23% of the materials in the building market. The prices of local materials, which account for 37% of materials in the market, have also been affected by increase in the cost of production and transportation to the end-users.

The depreciation in the value of the naira directly affects the prices of building materials in the construction industry. Material component of a building account for about 60% of the building cost. With the present economic situation, the downward trend of the value of the naira, cost of materials continues to escalate at a higher rate.