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April 22, 2024
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Mr Kene Nzekwe, NIQS President addressing journalists, seeking the Federal Government's intervention on reduction in costs of construction.

Construction costs: Institute seeks FG’s intervention

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By Okon Okon

The Nigerian Institute of Quantity Surveyors (NIQS) on Thursday, called on the Federal Government to urgently stabilise prices of construction materials to safeguard Nigeria’s infrastructure development.

The President of the institute, Mr Kene Nzekwe, made the call at a news conference in Abuja.

Nzekwe said that Nigeria’s construction industry was at a critical juncture.

He said that the government’s intervention was imperative to stabilise construction costs to overcome challenges posed by inflation and build a stronger and more resilient construction industry for the benefit of Nigerians.

“As we witness the present economic storm, it is imperative that we rally together to navigate these turbulent times and secure stability of the construction industry, a critical engine of our nation’s growth.

“The construction industry in the Nigerian economy plays a vital role in the provision of commercial, industrial and infrastructural projects, attracts many investments and thereby contributes substantially to gross Gross Domestic Product (GDP),” Nzekwe said.

The NIQS’s boss said that sudden increase in the prices of cement and other construction materials had stalled many construction projects in the country.

He suggested some strategic steps to mitigate inflation impacts on the construction industry.

He listed the steps to include promoting local manufacturing of construction materials, stabilising foreign exchange rate and implementing a friendly tariff regime.

“Our recommendation will be for the government to sustain engagement with local construction material manufacturers to understand and address their challenges,” he said.

According to him, foreign exchange rate volatility has caused the Naira to depreciate much within few months, thereby negatively affecting imports.

“I implore the government to consider our recommendations and work collaboratively with the NIQS and other stakeholders to overcome the challenges.

“A growing construction industry brings about positive multiplier effects namely; gross fixed capital formation growth in GDP of the economy.

“Government should be interested in what is happening in the construction industry because the sector is an effective barometer which can be used to measure the direction of economic growth,” Nzekwe said. (NAN) (www.nannews.ng)

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Edited by Ifeyinwa Okonkwo/Ijeoma Popoola

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