Abuja, July 31 (Viewpoint Housing News) – The Chairman, Real Estate Developers Association of Nigeria (REDAN), Edo state chapter, Mr. Chris Ebbih at the just concluded Africa International Housing Show (AIHS) in Abuja last week, suggested that it’s a priority for the Nigerian government to create a mechanism that will regulate prices of building materials, as it would enhance rapid construction of houses.
If the government does not do this he said, “production of mass housing will not be possible because of the costs”.
He also spoke of how significant a change in the value of the naira can have a multiplier effect on goods and services, not excluding the housing sector, despite the knowledge that some of these materials are home-made.
“Virtually, some commodities are produced in Nigeria, talk about cement, paints and others. Today, in the country, everything has a multiplier effect, he said.
“Talking about the dollar, when there is a change in value to the naira, it affects every other thing in the country, including real estate.
“For instance, even when roofing sheets or cements are produced in the country, the cost of transporting these goods will surely go up because of the rise in price of fuel.
You may also like
“So, we need to really try and see how the government can come in because, if the governement cannot regulate these prices, it will be very difficult. When we are talking about mass production of houses, it may not be possible because of the costs.
When asked about the development or growth of real estate business in Edo state, he said the state government have in some ways assisted through the construction of access roads and other infrastructure. He said real should be privately driven but, with the role the Federal Mortgage Bank of Nigeria (FMBN) will play through disbursement of loans on very low interest rates, it will boost the confidence of invstors hoping to come into real estate.
“The government can still do something in this regard, through the provision of infrastructure to this effect. It will bring down the cost of production of buildings in the country. We encourage the government to try more”, he said.
The Edo state REDAN chairman acknowledged the impact of the AIHS, and to a large extent he said, “has broadened the horizon of real estate business”.