Hubs Initiative to Lower Building Material Costs – Housing Minister

• The Federal Government plans to establish building materials manufacturing hubs across six geopolitical zones to reduce construction costs

• Fiscal incentives like tax reductions and subsidies will support local manufacturers, creating jobs and enhancing housing affordability

Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa, has stated that the Federal Government’s plan to establish building materials manufacturing hubs across six geopolitical zones will help reduce construction costs and improve housing affordability in Nigeria.

Speaking at a stakeholder engagement event in Lagos, organized by the ministry, Dangiwa emphasized that boosting local production and implementing fiscal incentives would lower housing costs and increase accessibility to affordable homes.

The engagement theme was “Actualizing the Renewed Hope Agenda for Housing and Urban Development: Examining Strategies, Identifying Opportunities to Boost Scale and Impact.”

Dangiwa explained that the hubs would be established within existing trade zones, offering tax incentives, reduced regulatory burdens, and enhanced market access.

“Fiscal incentives are key tools at our disposal. These include tax reductions for local manufacturers, custom duty waivers for machinery and raw materials, grants and subsidies to scale production, access to affordable financing through low-interest loans, and Public-Private Partnerships (PPP) to foster innovation and growth.”

He added that local manufacturing of building materials would create thousands of jobs, stimulate economic growth, and reduce reliance on imports. Supporting local manufacturers would also drive innovation, improve quality, and lower costs, making housing more affordable for Nigerians.

Minister of State for Housing and Urban Development, Abdullahi Yusuf Ata, revealed that the hubs would be located in Abia, Ogun, Kwara, Kano, Gombe, and Delta, with each serving its respective zone. The initiative aims to enhance production capabilities, vocational training, and technological advancements.

Senator Victor Umeh, Vice Chairman of the Senate Committee on Lands, Housing, and Urban Development, assured that the National Assembly would support legislative and policy measures to ensure the successful implementation of these hubs.

He identified key legislative areas such as tax relief, import duty waivers, subsidies for local manufacturers, low-interest financing access, infrastructure development, and research and innovation.

Dr. Shuaib Belgore, Permanent Secretary of the Federal Ministry of Housing and Urban Development, highlighted that the engagement allowed stakeholders to explore innovative solutions and policies to attract investment into the local building materials sector.

Belgore outlined key discussion points, including strengthening local production through policy support, enhancing infrastructure and transport networks, addressing energy costs, promoting sustainability, developing skills and vocational training, increasing financing access, and optimizing the supply and demand for alternative building materials.