The Building and Construction industry is very crucial in any nation’s social and economic development. This article gives an overview of the building and construction industry in Nigeria.
The building and construction industry in Nigeria has come of age. There are many factors responsible for the high importance of this industry.
Apart from the sector’s potential with respect to employment generation, the various activities undertaken in the sector are very germane to fostering effective sectoral linkages and enhancing, as well as sustaining economic development.
For instance, efforts at ensuring sound and sustainable national and economic development cannot ignore the importance of infrastructural development (transportation-road, rail, air, sea modes), industrial development (construction of industrial parks and factories), construction of institutional buildings, and provision of accommodation with respect to construction of various types of buildings, among others.
These are areas where the building and construction industry in Nigeria is indispensable. The Building and Construction sector has been relevant in the development of the Nigerian economy.
Also, housing is a major component of the building and construction sector. Housing is a key input in economic, social, and civic development.
Many housing-related activities contribute directly to achieving broader socio-economic development goals. It is a major driver of economic growth.
Worldwide and especially in low-income countries, housing construction creates job opportunities.
Housing matters to economic development as it enhances economic performance.
Similarly, in Nigeria, the construction sector has provided employment for different categories of employees, especially in major Nigerian cities where construction activities have been immense. These include the Federal Capital Territory (FCT), Abuja, the various State capital cities like Lagos, Port-Harcourt, Ibadan, Calabar, Kaduna, Kano, among others.
The sector is also pivotal in sectoral linkage as its activities have multiplier effects on the growth of other sectors, especially the building materials industry, real estate transactions, among others.
More importantly, the drive towards achieving the goal and objectives of the Nigerian Vision 20:2020 blueprint has an anchor in the building and construction sector. In the blueprint, infrastructural development is recognised as key to achieving economic transformation.
Most of the activities lined up to be undertaken have strong roles for the building and construction sector. Efforts at transforming the power, transport, housing and industrial sectors are not likely to bear the desired fruits without the active participation of the actors in the building and construction industry as well as the effective and efficient performance of the sector.
There are challenges associated with the performance of the building and construction sector. These have always adversely affected the sector’s contribution to economic development.
In view of the importance of the sector and the role it is expected to play towards achieving the country’s vision, and to perform to the extent that it’s contribution to ec there is need to address those challenges and put the sector in a good stead for effective and efficient performance in the years ahead.
However, for the sector to perform to the extent that its contribution to economic development will be maximised, the associated challenges should be addressed.
The business environment should be made more conducive to ease the activities and operations of actors in the sector.
There is need for capacity building for professionals and experts in the sector. Similarly, building material manufacturing companies should be encouraged to produce adequate and affordable materials to meet the huge demand for the various building materials in the sector.
The tempo of increase in cement production which is a key building material should not be relaxed as demand for it will continue to be on the increase.
Access of actors in the Building and Construction sector to credit facility should be enhanced. Banks should make more funds available for the benefit of the actors in the sector while conditions for accessing such funds should be attractive.