Managing Director of Daniel-Bob Nigeria Limited, Daniel Orji, said the rapidly rising prices of construction materials could aggravate the housing deficit problem in the country.
Orji, who spoke in Awka on Saturday, said rising building material prices had led many private and commercial developers to abandon their sites.
According to him, most of the mortgage housing projects in Nigeria have been either abandoned or suspended due to varying cost estimates resulting from the increase in the price of building materials.
He therefore called on the Federal Government to subsidize building materials, if it seeks to achieve its goal of mass housing for Nigerians.
Orji said it has become difficult to get into construction projects, especially due to high prices for cement and rods.
He said, “For us in the construction industry, we made our estimate at N2,200 for a bag of cement, but it’s between N4,600 and N4,800 now, the same goes for the iron rod, for example 12mm was N1,800 when we started but now it’s N4,200.
“A trip of 30 tons of granite cost 180,000 naira; now we buy it for N300,000; a sand trip that was 12,000 N is now 35,000 N, while a piece of block that was 140 N is now 300 N.
“For labourers, we used to pay them N4,000 a day but now it is N6,000. So clearly there is a problem in the housing sector, the government needs to intervene and save the day by proposing measures to control and reduce the cost of building materials.
“For us at Daniel Bob, we are focused on delivering on our promise to build a functional area for medical residents; this is why work continues regularly. It is we who manage the housing project of the Nigerian Association of Medical Residents and it is imperative that we carry out the project.
Orji, however, said the NARD housing estate run by his company is making progress, despite the challenge in the sector.
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