EFFECT OF BUILDING
MATERIAL COST ON HOUSING DEVELOPMENT IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
Researchers
in building sector have indicated that between 50 to 60 per cent of the total
construction input goes into building materials. As a result, there is an
urgent need to address the high cost of these products which is said to have
slowed down the growth of the building and construction sector in Nigeria. Building
materials constitute the largest single input in housing construction. While
Adedeji (2010) observed that about sixty (60) per cent of the total housing
expenditure goes for the purchase of building materials, Arayela (2005) averred
that the cost of building materials constitute about 65 percent of the
construction cost.
Ogunsemi (2010) opined that building
materials form the main factors that restricts the supply of housing and ascertained
that they account for between 50-60 percent of the cost of buildings. Thus,
Adedeji (2002) rightly observed that one main barrier to the realization of
effective housing in Nigeria as revealed in successive government efforts has
been the cost of housing in the country. He argued that in the early periods,
shelter in Nigeria was easily affordable as building materials were sourced
from the immediate environment at affordable costs. Technology also was readily
available with commensurate simple techniques. But contact with the outside
world through interregional and international training of professionals in
foreign countries as occasioned by colonization, brought changes to tastes and
hence outlook to house forms. These changes rendered the undeveloped local
building materials inadequate while there was an increased demand for exotic
ones. Accordingly, Arayela (2002) posited that the modern building industry
lays much emphasis on sophisticated building materials and techniques that are
expensive and energy consuming. Though, housing delivery efforts have evidently
been inhibited by prohibitive costs of building materials, this problem cannot
be reasonably and reliably overcome by merely resorting to the use of locally
available materials without due considerations to the applicable initiative,
the cost of processing and sustainability of the local materials. One of the
most important components of a sustainable building is the material efficiency.
Correct selection of building materials can be performed by taking into account
their complete life span and by choosing products with the minimal
environmental impacts. For instance, González and Navarro (2006) estimated that
the selection of building materials with low environmental impacts can reduce
carbon dioxide (CO2) emissions by up to 30%. The use of renewable and recycled
sources is widely encouraged as the life-cycle of a building and its elements
can be closed (Chwieduk, 2003). The major factor that greatly affect the
selection of building materials are their costs and social requirements such as
thermal comfort, good mechanical properties (strength and durability),
aesthetic characteristics and an ability to construct quickly. Ideally, the
combination of all environmental, economic and social factors can give a clear
description of a material, and thus helps in a decision making process
regarding the cost of the materials suitable for buildings (Abeysundara, et, al.,2009)
. Nigerians
would continue to pay more for accommodation in major cities until the cost of
building materials is subsidized through probably through tax reduction. The instability
in the price of building materials was posited as a direct result of high taxes
which in turn impacts on the cost of accommodation in major cities
across the country. According to Arayela (2002), many completed
housing estates had remained unoccupied because of the high rental and sale
prices attached to them as against the meager income of the average
Nigerian workers. He also added that if government can revitalise our
industrial base, the cost of building materials will come down and many more
people would be able to build houses. He therefore urged the Federal
Government to provide tax relief for local manufacturers and importers of
building materials in order to reduce the high cost of accommodation in major
cities.
1.2 STATEMENT OF THE PROBLEM
Building materials have been playing an
important role in the construction industry—they are those materials put together
in erecting or constructing structures, no field of engineering is conceivable
without their use (Akanni, 2006; Udosen & Akanni, 2010). Building materials
contribute immensely to the quality and cost of housing, from what is used in
the foundation to the materials for roofing and finishes, while the building
materials industry is an important contributor to the national economy of any
nation as its output governs both the rate and the quality of construction work.
The cost of building materials poses a
significant threat to both the construction industry and people aspiring to own
houses (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007); for example,
a bag of cement, which is valued at Ν1,350.00 in 2006, goes as high as
Ν1,850.00 in 2009 (Anosike, 2009) depicting about 37% increment; the bag goes
as high as Ν2,000.00 in 2015 during peak season (field survey 2015). Supporting
this view, Jagboro and Owoeye (2004) earlier established that increase in the
prices of building materials has multiplier effects on housing development
while Idoro and Jolaiya (2010) affirmed that many projects were not completed
on time due to the cost of materials, which have been on the increase. Besides
timely completion, high prices of building materials form a crucial constraint
to improving housing conditions in Nigeria (United Nations Centre for Human
Settlement [UNCHS], 1993).
In spite of the past studies on the
cost of building materials in Nigeria, little is publicized about the
implications of the rise in cost on the construction industry; most literature (Jagboro
& Owoeye, 2004; Mekson, 2008; Njoku, 2007; Oladipo & Oni, 2012) has
concentrated on identifying the causes with little emphasis on the
implications; hence, the research seeks to provide information on the effect of
cost of building materials on housing development in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The
following are the objectives of this study:
1. To
examine the effect of building materials cost on housing development in
Nigeria.
2. To
determine the factors responsible for high cost of building materials in
Nigeria.
3. To
proffer solutions that will reduce the cost of building material to ensure
adequate housing development in Nigeria.
1.4 RESEARCH QUESTIONS
1. What
is the effect of building materials cost on housing development in Nigeria?
2. What
are the factors responsible for high cost of building materials in Nigeria?
3. What
are the solutions that can reduce the cost of building material to ensure
adequate housing development in Nigeria?
1.5 HYPOTHESIS
HO:
Cost of building materials does not affect housing development in Nigeria.
HA:
Cost of building materials does affect housing development in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The
following are the significance of this study:
1. Findings
from this study will educate the general public on the current market cost of
building materials in Nigeria and its effect on sustainable housing development
in Nigeria.
2. The
results of this study will sensitize the policy makers and the government on
the need to make and implement policies that will reduce the cost of building
materials in Nigeria thereby encouraging massive housing development all over
the country.
3. This
research will also serve as a resource base to other scholars and researchers
interested in carrying out further research in this field subsequently, if
applied will go to an extent to provide new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This
study on the effect of building materials cost on housing development in
Nigeria will cover the current prices of building material in Nigeria focusing
on how it has influenced the provision of affordable housing for the Nigerian
populace.
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
Time constraint– The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.
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Adedeji YMD (2010). Technology and standardised
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Akanni, P. O. (2006, August). Small
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Anosike, P. (2009, April 6). Nigerian
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of materials: Practical case study of three houses of low environmental impact.
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Retrieved from http://ww2.unhabitat.org/ programmes/housingpolicy/documents/HS.C.14.7.htm