The 5 Biggest Issues Facing the Nigerian Construction Industry and How They Can Be Resolved

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The construction industry plays a critical role in any economy. Construction directly or indirectly employs millions of people, and its services are indispensable for any country seeking to grow and modernize its infrastructure. The Nigerian construction industry is growing at an impressive rate, with output increasing from N23 billion in 2014 to N26 billion in 2015. Furthermore, the sector is expected to continue growing steadily over the next few years, reaching N34 billion by 2020. However, the Nigerian construction industry faces several challenges which could undermine its long-term potential. From a shortage of skilled labor to regulatory issues, this article examines the five biggest issues facing the Nigerian construction sector and how they can be resolved.

Escalating Costs of Construction

The construction industry plays a critical role in any economy. Construction directly or indirectly employs millions of people, and its services are indispensable for any country seeking to grow and modernize its infrastructure. But when it comes to Nigeria, the construction sector has fallen victim to poor governance, corruption and incompetence. In recent years, costs in the Nigerian construction industry have skyrocketed. Whereas in the early 2000s, a typical house in the country cost around $33,000, the same type of house now costs $140,000. The primary reason for this is a shortage of skilled labor. According to the Construction Industries Federation, there are only 12,000 skilled workers in the entire country, amounting to just 0.1% of the population.

Shortage of Skilled Labor

The primary reason for escalating construction costs in Nigeria is a shortage of skilled labor. There are only 12,000 skilled workers in the entire country, amounting to just 0.1% of the population. It’s clear that the government must take steps to resolve this issue. In order to do so, they must invest in the construction education system, both at the secondary and post-secondary level. They must also create incentives for skilled workers to remain in the country, such as lowering taxes for them. The government could also establish programs that allow employers to hire skilled foreign workers on a temporary basis until there are enough qualified locals to fill positions.

Poor Quality of Products and Services

Poor quality of products and services remains a major issue in the Nigerian construction industry. It’s important to note that this problem is a symptom of several larger issues, including a shortage of skilled labor and poor management practices. To address this issue, the government should enforce stricter quality standards for construction projects, working closely with construction companies to ensure that they meet this standard. The government should also increase oversight on major projects as well as penalties for contractors who don’t meet quality standards. Furthermore, the government should improve the quality of construction education in the country’s universities and training centers.

Corruption and Fraud

The construction sector has become a hotbed for corruption and fraud in recent years. This has been referred to as “corruption by construction.” In order to address this issue, the government must enforce strict policies governing procurement and project management. They must also establish an independent body that investigates corruption claims. This body should have the authority to impose fines and ensure that corrupt contractors are removed from the industry. The government should also provide incentives to private sector companies, including tax breaks and grants.

Road Infrastructure is Ineffective and Underdeveloped

Road infrastructure in Nigeria is underdeveloped and ineffective. This negatively impacts the entire economy, especially the construction sector. In order to address this issue, the government should invest more in road infrastructure projects. They should also prioritize the construction and maintenance of the road network in the country’s major cities. Furthermore, the government should partner with private sector companies to improve road infrastructure.

Concluding Words

In conclusion, the Nigerian construction industry has a bright future ahead of it. However, it faces a number of challenges that could undermine its long-term potential. Escalating costs, a shortage of skilled labor, poor quality of products and services, corruption and fraud, and underdeveloped road infrastructure are just a few of these challenges. If these issues are not addressed, there is a risk that the construction industry will not thrive as expected.