Key 4 Factors Affecting Cost of Building Construction in Nigeria


Key 4 Factors Affecting Cost of Building Construction in Nigeria

Building costs in Nigeria are affected by a variety of factors. In order to take the proper actions and make wiser decisions regarding building construction, you should be aware of these factors if you want to build a home or invest in real estate (buildings) in Nigeria.

The English dictionary defines cost as either a monetary sum or a period of time. Construction is the process of building something, and building is the term used to describe a closed structure with walls and a roof.

Based on the aforementioned definitions, we can conclude that building construction is the act of erecting or constructing a building structure. It involves steps and calls for the involvement of building specialists in order to be accomplished.

Simply put, the cost of building construction is the sum of money required to construct a building structure. The range of costs associated with building construction is represented, from the least to the most.

According to the research, the three parties involved in the construction industry believe that the following five factors are the most crucial in determining the cost of construction projects in Nigeria: material costs, economic instability, additional work, lax financial oversight on the job site, incorrect method of estimation/inaccurate or poor estimation of original cost, and poor project management.

Project cancellation, company or firm liability resulting from a bad debtor bankruptcy, a poor reputation, and the inability to obtain project financing are the three most significant effects. The outcomes of this study, hopefully, will at least.

Some light is shed on the issue of cost inflation that Nigeria's construction industry is dealing with, and steps can be taken to address it, thereby advancing the sector.

We'll examine the variables influencing building projects in Nigeria in this article, and my goal is to provide you with knowledge that will enable you to make wiser choices when you enter the building construction industry as a professional or as a building owner (landlord).


Here are Key 4 Factors Affecting Cost of Building Construction in Nigeria

Key 4 Factors Affecting Cost of Building Construction in Nigeria

The following explanations provide an overview of the variables influencing building construction costs in Nigeria:

•  Financial Factor

The cost of building construction is significantly influenced by Nigeria's economy. More people in Nigeria will start their construction projects if the country's economy is strong and the population has more money.

the expensive land, building supplies, etc. discourages a lot of individuals from beginning their construction projects in Nigeria.

In fact, if landed properties are reasonably priced in Nigeria and building materials are affordable, more people will be inspired to begin building construction projects because the cost of building construction would generally be reduced in Nigeria.

Nigeria imports 90% of the six million tons of steel it uses annually, from countries like China, Ukraine, etc. Steel rod is one building material that is crucial in building construction; it is used for reinforcement while building a building structure. , and this has an impact on the price of steel in Nigeria, resulting in high steel prices in Nigeria, which, of course, has an impact on the price of building construction in Nigeria.

In order to have a source of water on your site, you must first drill a borehole, and the cost of drilling a borehole has an impact on the overall cost of building construction in Nigeria. Water is important in the construction of buildings because it is used to mix mortar and concrete, and its source should be close to the site where building construction is taking place.

It is true that the water from a borehole dug on a building construction site can later be used by the building's occupants, but what if a landlord has a limited budget and plans to dig a borehole after the construction of his building? Or what if the government provides water to houses? Wouldn't it be better and more cost-effective for landlords to use such a source of water while building?

As compared to a few years ago, the value of the naira has also declined in purchasing power. People require more money to meet their needs, and this is reflected in the price building experts charge to carry out building construction projects.

Additionally, it can be seen in the wage’s artisans and workers in Nigeria charge for doing building work.


• Environmental Factor

Construction costs may vary depending on the environment in which they are done. Building on a swampy site will be more expensive. This is due to the higher cost of additional construction supplies and labor required to strengthen the foundation of such a building structure in order for it to stand on the swampy land.

The cost of digging a deeper foundation will rise, as will the number of blocks required to raise the foundation height to the floor level. These costs will undoubtedly have an impact on the overall cost of building the structure in question. In Nigeria, some of the lands are uneven, so more building supplies will be needed to achieve level floors during construction.

Additionally, some areas of Nigeria experience flooding during heavy rains due to inadequate drainage systems in some of the cities where those areas are located. Anyone attempting to build on such areas will undoubtedly have to spend more money on construction to address the flooding.

Furthermore, constructing a home in a region of Nigeria with heavy rainfall will necessitate a good roof structure, which will increase the cost.


• Governmental Policies

Some government’s policies can affect the cost of building construction in Nigeria. In Nigeria, in order to raise a building structure, one must first obtain government permission or approval, which comes with a price.

The cost of building construction in Nigeria is impacted by these fees, which vary depending on the type of building structure.

Before approving the construction of a building, the government will also require specific drawings, and the price of those drawings will undoubtedly affect the overall cost of building that structure.


• Indigenous Factor

The cost of building construction may be covered in part by the natives of some Nigerian towns where buildings will be constructed.

In some regions of Nigeria, you must first make a financial contribution to the local population before beginning construction on a building. This sum, also referred to as "matching ground money," is separate from the land's purchase price and is based on the kind of building structure that will be erected.

The higher the type of building, the more money they will charge, and unquestionably, this charge will reflect on the overall cost of construction of the building.


Final though

Many factors, some of which may not be covered in this article, influence the cost of building construction in Nigeria. Building construction costs are impacted by Nigeria's economy. The cost of building construction in Nigeria will decrease and more people will start their building projects if the economy of Nigeria is strong and building materials are affordable.

In addition, if Nigeria's economy significantly improves, people will finish their building construction projects on schedule. The price of building construction in Nigeria can also be impacted by the condition of the land because it will require more labor and building materials.

The cost of building structures in some areas of Nigeria may decrease if government officials take a closer look at the high building approval fees in those areas, which would encourage more people to start and complete their building construction projects.

In order to lower the overall cost of building construction in Nigeria, the government should also investigate the unnecessary fees levied by locals of some towns where construction is planned.

I hope this article has provided you with some useful information, and I wish you luck as you begin or continue your building construction projects.

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