Nigeria Can Reduce Construction Costs via Local Production

Chime asserts that Nigeria can mitigate construction costs by enhancing local production of materials. He notes that over the past two years, the cost of doing business has escalated, with substantial price increases in essential construction components such as reinforcement steel, electrical cables, and HVAC systems.

This volatility has led to invalidated project quotations and delays, particularly affecting fixed-price contracts. Chime points out that international manufacturers are now demanding payments in foreign currency or shorter payment terms, further straining Nigerian businesses.

He believes that these challenges are spurring innovation among firms, which are increasingly seeking local alternatives and improving financial risk management. Chime also discusses the impact of recent economic reforms, including the removal of fuel subsidies and foreign exchange market liberalization, which have raised transportation and project financing costs.

He calls for government support for the construction and manufacturing sectors to facilitate smoother transitions during these reforms, emphasizing that infrastructure development is crucial for economic growth.