A STUDY ON THE TRENDS IN BUILDING COST IN NIGERIA
The dictionary definition of trends simply means “to move or extend in a specific direction” (Long Man Family Dictionary) also trends simply means “a general direction in which a situation is changing or developing” (Advance Learner’s Dictionary).
Leaning on, this definition of “trends” thus the subject matter “trends in building cost in Nigeria” can be described as a way to move or extend in a specific direction of building cost in Nigeria.
This trend in building cost is associated with the cost of erecting a building which includes the physical preparation and developmental cost.
The construction industry is very vital to the socio-economic development of a nation, this is because the affordability or otherwise of construction affect the confidence of the citizen in their existence in any nation.
One of the first and most fundamental aspect of human needs is shelter, therefore, it become necessary that the cost of constructing a given building project should be within the reach of the average citizens, (Dr. A.R Oladele 2007).
Over the years, the discovery of oil in Nigeria alongside with increasing population led to the increase in the demand for building in Nigeria.
Also the unscheduled changes of government in Nigeria lead to the formulation of policics from one government to the other which sometimes do not favour the construction industry.
These trends in building cost are caused by the following factors which include:
- Method of construction
- Limited number of manufacturers of building materials
- Employment of foreign expatriates
- Increment of wages
- Import tariff
- Fuel scarcity
- Bribery and corruption
- Second tier of foreign exchange
These reasons mentioned above are making a tremendous contribution to the increasing building cost which in turn posing a potential blockage to the chance of the less privileged ones to own a house or building and also went further to make it difficult for them to pay rent charged by the lessor on a house.
Therefore, this project is aimed at highlighting various factors that influence these trends in building cost in Nigeria. And to come up with possible solution to curtail these treads through oral interview and questionnaires with parties involved also to asses the changes within the period of ten years (10 years) (2000-2010).
1.1 STATEMENT OF THE PROBLEMS
One of the challenges faced by the construction industry in Nigeria is the fluctuation of the prices of building materials which lead to upward and downward movement of building cost in Nigeria.
Most average Nigeria citizens are of low income thereby making it difficult for them to own a building if these trends are not properly study to plan ahead of time for a given project.