The Nigerian Institute of Quantity Surveyors (NIQS) has called on the Federal Government to intervene promptly and stabilize prices of products in the construction sector to mitigate the negative effects of hyperinflation.
During a press conference in Abuja, the President of NIQS, QS Kene Nzekwe, expressed concerns over the escalating prices of construction materials.
He warned that the trend could disrupt economic projections and push the economy into uncharted territory.
Nzekwe highlighted the importance of the construction industry in measuring development and its significant contribution to Nigeria’s economy, with up to 11.79% contribution to the nominal GDP in the first quarter of 2023.
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He noted that hyperinflation was crippling the construction industry, leading to halted projects and impeding the development of critical infrastructure. Nzekwe cited examples of price increases, such as cement rising from N4,500 to between N12,000 and N13,000 per 50kg bag and reinforcement steel rods increasing from N590,000-N650,000 per tonne to N1.2m-N1.4m in just six weeks.
As part of its recommendations, NIQS urged the government to engage local manufacturers to understand their challenges, stabilize the exchange rate, and monitor and enforce Executive Order 5 to promote local content in project planning and execution.
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Nzekwe emphasized the need for the government to combat oligopolies and cartels in the construction and manufacturing industries and implement friendly tariff regimes to stabilize the exchange rate and manage price fluctuation effectively.