Experts Advocate Gas-Powered Industrial Hubs to Reduce Housing Costs in Nigeria
Industry stakeholders have strongly called for the creation of gas-powered industrial hubs focused on producing indigenous building materials as a strategic measure to lower the escalating housing costs across Nigeria. They issued a warning that the country's housing deficit, currently estimated at approximately 22 million units, could deteriorate further as population growth continues to outpace the supply of housing.
Summit Highlights Urgent Need for Action
The stakeholders made these remarks during a real estate exhibition and investment summit held in Port Harcourt, Rivers State, over the weekend, targeting the South-East and South-South regions. Key speakers included entrepreneur My-ACE China, Managing Director of TAF Africa Global Mustapha Njie, Bolaji Oshobukola of Odibola Properties Ltd, and Onyekachi Nzekwesi of Pineleaf Estate and Property Company. They urged the Minister of Housing and Urban Development, represented at the event, to swiftly implement the summit's recommendations to address the ongoing housing crisis.
My-ACE China emphasized the necessity for government-supported housing free trade zones where local building materials could be manufactured under favourable conditions, including tax waivers, duty-free policies, and access to low-cost power. He pointed out that reliance on imported materials, compounded by high exchange rates, has rendered housing unaffordable for many Nigerians. Indigenous building materials parks with zero tax, free duty, and low power costs will significantly reduce construction expenses. As long as the exchange rate remains high, imported materials will remain out of reach for the average Nigerian, he stated.
Proposals for Public-Private Partnerships and Business Ease
China also advocated for non-political public-private partnerships (PPPs), suggesting that credible private developers should be engaged while the government provides land and simplifies titling processes. When land acquisition and titling challenges are removed, up to 40 per cent of housing costs can be eliminated, he added. Furthermore, he stressed the importance of improving the ease of doing business, particularly by enhancing access to financing and global investment funds, to attract more investors into the real estate sector. Most times, banks are reluctant to lend to real estate developers, making it difficult for the sector to grow. If these constraints are addressed, supply will increase and prices will naturally decline, he explained.
Sustainability and Technological Adaptation
On sustainability, another speaker, known as the Mayor of Housing, called for a return to green development, expressing concern over the increasing replacement of natural vegetation with concrete structures. He advocated for policies mandating a minimum number of trees per housing unit to promote environmental balance and healthier living conditions. We must ensure that trees and humans coexist. There should be legislation requiring a minimum number of trees per housing development to restore ecological balance, he said. He also highlighted the need for integrated horticulture in housing development, combining food, medicinal, and aesthetic plants, along with increased adoption of renewable energy, particularly solar power. Africa has abundant sunlight but is yet to take the lead in solar energy adoption. Harnessing this resource is key to sustainable development, he noted.
Regarding technology, he stressed the importance of adopting innovations tailored to local realities, cautioning against the wholesale importation of foreign models without adaptation. Technology must serve our needs and be adapted to our environment. Imported solutions that are not localised may become impractical, he warned.
Investment Opportunities and Media Collaboration
China commended BusinessDay Media Limited for organizing the summit and called for broader media collaboration to showcase investment opportunities in the region. He described Port Harcourt as a high-growth investment destination, projecting stronger housing growth compared to Lagos and Abuja, and urged investors to capitalize on emerging opportunities in the South-South and South-East regions.
