Housing crisis: Declare emergency on building costs, not rent — Wamakko

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File name: Real Estate

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By Luminous Jannamike

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ABUJA — Former President of the Real Estate Developers Association of Nigeria, REDAN, Dr Aliyu Wamakko, has urged the Federal Government to declare a state of emergency on soaring building costs rather than rising rents, saying spiralling construction costs, not landlords, are driving Nigeria’s housing crisis.

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With rents climbing beyond the reach of many Nigerians, Wamakko said the answer is not rent controls but cheaper housing production, arguing that lowering the cost of construction would naturally make accommodation more affordable.

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Speaking to journalists in Abuja on Thursday, Wamakko urged the Federal Government to reduce the cost of building materials, expand access to affordable long-term finance, strengthen local manufacturing and support policies that encourage large-scale housing development, insisting these measures would address the root cause of rising rents.

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“Nigeria’s housing challenge is, first and foremost, a construction cost crisis. High rents are merely the visible symptom of a deeper economic problem. The real drivers are the soaring costs of land acquisition, building materials, labour, infrastructure and financing,” Wamakko said.

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He said developers were battling unprecedented increases in construction costs, noting that cement was approaching N13,000 per bag in many parts of the country, while steel, roofing materials and labour had also recorded steep price increases.

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“No prudent investor commits hundreds of millions of naira to housing development only to recover a fraction of the investment. Like every other productive sector, real estate is governed by the economics of production. As long as construction costs continue to rise, rental prices cannot realistically remain low,” he argued.

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He summed up his position in a blunt declaration: “If there is any emergency to declare, it should be on the escalating cost of building materials and housing production on rent.”

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Wamakko said reducing the cost of cement and other construction inputs, improving access to affordable financing and creating policies that encourage developers to build more homes would increase housing supply and ultimately ease pressure on rents.

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“That is the sustainable path to lower rents. Increased housing supply and lower construction costs will naturally make accommodation more affordable. Attempting to regulate rental prices without addressing the underlying economics risks worsening the problem by discouraging private investment in housing,” he added.

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While acknowledging ongoing Federal Government housing initiatives and interventions by the Federal Mortgage Bank of Nigeria, Wamakko said such efforts should be strengthened and expanded rather than overshadowed by proposals that could discourage private investment in the sector.

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“Real estate developers are not the enemy. We are indispensable partners in closing Nigeria’s housing deficit. Every policy that lowers the cost of building ultimately lowers the cost of renting. The surest route to affordable housing is to make it cheaper to build,” Wamakko said.

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