News
FG Seeks Collaboration To Boost Local Building Materials
Dignitaries at the 2025 FMHUD Stakeholders Engagement on Fiscal Incentives for Manufacturers of Local Building Materials Components in Nigeria on Thursday in Lagos
By Grace Alegba
The Federal Government has called for collaboration and incentives for local building materials manufacturers to boost the economy, create jobs and achieve affordable mass housing goals.
The Minister of Housing and Urban Development, Mr Ahmed Dangiwa, made the call during a stakeholders’ engagement on Thursday in Lagos.
The theme of the stakeholders’ meeting is, “Development of Fiscal Incentives for Manufacturers of Local Building Materials Components in Nigeria”.
Dangiwa underscored the importance of building materials in the overall cost of constructing a house.
He said that building materials account for approximately 50 per cent to 70 per cent of the total cost of constructing a house, adding that the cost of building materials is a major determinant of housing affordability.
Dangiwa noted that the need to boost local manufacturing of building materials had been a longstanding issue.
He said it was not good thing that the Building Materials Producers Association of Nigeria (BUMPAN) had not deliver on its mandate since its establishment on March 24, 2004
Dangiwa stated that local manufacturing of building materials has the potential to create thousands of jobs, stimulate economic growth and reduce reliance on imports.
“By supporting local manufacturers, we can foster innovation, improve quality, reduce costs and make housing more affordable for Nigerians.
“Local production of building materials will directly contribute to reducing the cost of construction, thereby making housing more accessible to the average Nigerian.
“This aligns with the Federal Government’s commitment to providing affordable housing for all,” he said.
Dangiwa said government would establish building materials manufacturing hubs across Nigeria’s six geopolitical zones.
“These are for centralised manufacturing and the opportunity to access shared infrastructure, reduce production costs and benefit from economies of scale.
“That is why we are taking proactive steps to create an enabling environment for local manufacturers,” he said.
He listed fiscal incentives to be adopted to include tax holidays, customs duty waivers, grants and subsidies, access to affordable financing through low-interest loans, and public-private partnerships to drive innovation and growth.
According to him, the development of fiscal incentives for manufacturers of local building materials is not just a policy option; it is a necessity for the growth of our economy and the realisation of the housing goals.
Sen. Victor Umeh, Vice Chairman of the Senate Committee on Land, Housing and Urban Development, explained the problem of housing was affordability, especially among low income earners.
Umeh, who represented the committee chairman, Sen. Aminu Tambuwal, pledged support for the local production of building materials through collaboration to drive growth.
He called for tax incentives for local manufacturers, import waivers for materials and machinery needed to aid production of critical construction materials.
He also called for production subsidy, access to low interest loans, intervention funds for local manufacturers, establishment of industrial hubs, export processing zones, among others.
He said local materials would be accepted in the international markets if high quality standards were embraced, adding that the federal lawmakers were ready to support positive policies for growth of the housing sector.
He, however, appealed to manufacturers to shun temptation of diverting waivers for local production of building materials into other trading activities.
Mr Abiante Awaji, Chairman, House Committee on Regional Planning and Urban Development, called for incentives to attract investors into the housing sector.
He also called for realistic and honest contributions which would combine a mix of old and modern building materials as well as technology for delivery of affordable mass housing.
Mr Segun Ajayi-Kadir, Director General, Manufacturers Association of Nigeria(MAN), said the stakeholders meeting was apt coming at a time manufacturers were having challenges with sourcing foreign exchange for the importation.
Ajayi-Kadir, represented by Miss Oluchi Odimuko, Head Sectoral and Regulatory Affairs Division, said that one of the key challenges facing the sector is poor infrastructure.
He noted that indigenous manufacturers have the capacity to meet demand and highlighted locally produced materials, including cables that meet global quality standards for international markets.
He emphasised the need for government incentives to support local production.
He also called for the elimination of dollarisation in gas purchasesand urged the government to address issues such as wharf landing charges, import duty reductions and the downward review of license and royalty fees.
According to him, with the right policies and collaboration, stakeholders can build resilient and affordable housing for Nigerians. (NAN)
-
Society News4 years agoJamaican man beheads wife after finding out their 6 kids are not his
-
Society News6 years agoEXCLUSIVE: The Complete Story of Dolapo Awosika, John Fashanu and Prophet Kasali Sex Mess
-
News5 years agoPastor Osagie Ize-Iyamu, His Membership Of Secret Cult, And Other Issues Touching On His Public Credentials Examined by Barr. PATRICK I. BIOSE
-
News5 years agoBREAKING: Ajimobi’s daughter-in-law blast Gov. Makinde, says gov can’t surpass ex-Oyo gov
-
News5 years agoBREAKING: 2 arrested as NAF begins investigations into Tolulope’s death
-
Crime5 years agoExclusive: Female Aide Fingered In Oko Oloyun’s Murder + Banking Transactions That Nailed Husband
-
Society News5 years agoThe Rise and Fall of “Jumoke The Bread Seller”
-
News5 years agoBREAKING: Police take over Edo House of Assembly as APC, Oshiomhole move to seize control
You must be logged in to post a comment Login