In a bid to reduce building material costs and make housing more affordable in Nigeria, the Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa, has unveiled a groundbreaking initiative. This initiative involves establishing building materials manufacturing hubs in six geo-political zones across the country. The Minister made this announcement during an engaging session with stakeholders in the housing sector in Lagos.
Boosting Local Production for Affordable Housing
Arc Ahmed Musa Dangiwa emphasized the importance of boosting local production and implementing strategic fiscal incentives to lower housing construction costs. By establishing these manufacturing hubs, the government aims to reduce the cost of building materials significantly and improve access to affordable housing for Nigerians. The hubs will be strategically located in existing trade zones, providing advantages such as tax incentives, reduced regulatory burdens, and better market access.
According to Dangiwa, fiscal incentives play a crucial role in achieving these goals. These incentives include tax reductions for local manufacturers, custom duty waivers for machinery and raw materials imports, grants and subsidies to scale up production, affordable financing through low-interest loans, and Public-Private Partnerships (PPP) to drive innovation and growth. By supporting local manufacturers, the initiative has the potential to create thousands of jobs, stimulate economic growth, and reduce the country’s reliance on imported materials.
Legislative Support and Policy Incentives
Minister of State for Housing and Urban Development, Abdullahi Yusuf Ata, highlighted the strategic locations for the building materials manufacturing hubs in states like Abia, Ogun, Kwara, Kano, Gombe, and Delta. Each hub will serve its respective zone, enhancing production capabilities, vocational training, and innovation. Senator Victor Umeh, Vice Chairman of the Senate Committee on Lands, Housing, and Urban Development, assured that the National Assembly would provide legislative and policy incentives to support the smooth takeoff of these hubs.
Umeh identified key areas requiring legislative backing, such as tax relief, import duty waivers, subsidies for local manufacturers, access to low-interest financing, infrastructure support, and research and development. The goal is to create an enabling environment that encourages local production, innovation, and growth in the building materials industry.
Promoting Innovation and Investment
During the engagement, Permanent Secretary of the Federal Ministry of Housing and Urban Development, Dr. Shuaib Belgore, emphasized the importance of innovative solutions, incentives, and policies to attract investment into the local building materials industry. Stakeholders gathered to discuss various focus areas, including enhancing local production through policy and regulatory support, improving infrastructure and transportation networks, addressing energy costs, promoting sustainability, building capacity and skills, increasing access to financing, and optimizing the demand and supply of alternative building materials.
The initiative to establish building materials manufacturing hubs represents a significant step towards reducing building material costs and enhancing housing affordability in Nigeria. By leveraging local production, strategic fiscal incentives, and legislative support, the government aims to make housing more accessible and create a sustainable housing ecosystem for all Nigerians.
