There are indications that house prices will drop significantly, as the Federal Government has acquired 200 hectares of land in the Lekki Free Trade Zone (LFTZ), Lagos, for a building materials hub aimed at lowering housing production costs nationwide.
Low housing production costs are expected to translate to lower house prices, which, at the moment, are beyond the reach of many Nigerians, especially those on low incomes.
Ahmed Dangiwa, Minister of Housing and Urban Development, disclosed this development during a tour of industrial areas within the Lekki and Lagos Free Zones recently.
Dangiwa explained that the hub is intended to promote local content in the construction sector, curb rising building material costs, encourage domestic production, and support sustainable housing delivery nationwide. He added that similar hubs are planned for each of Nigeria’s six geopolitical zones.
According to the minister, the hub will be supported by intermodal transport infrastructure—including seaports, airports, railways, and roads—to ensure efficient operations.
He revealed that an investor has already been secured to kickstart the project, which is expected to reduce reliance on imported materials, save foreign exchange, and create jobs through local manufacturing.
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This development is not entirely new as the Federal Government had, about 12 months ago, announced its intentions to establish building materials hubs across the six geopolitical zones to boost local production, reduce import dependence, create jobs, and support affordable housing nationwide.
It is interesting to know that the 2025 budget under the Federal Ministry of Housing and Urban Development made provisions for these hubs.
The choice of free trade zones, including the LFTZ allows the government to offer incentives such as exemptions from import duties on machinery and equipment, while ensuring convenient access to infrastructure , including seaports and major roads for efficient operations and distribution.
Dangiwa stated that investors would fund and manage the hubs, which will be returned to the government after recovering their investments. Locations include Sagamu (Ogun), Aba (Abia), Warri/Asaba (Delta), Ajaokuta (Kogi), Kano (Kano), and Gombe (Gombe).
Each hub will produce roofing sheets, ceilings, tiles, and doors, and provide essential infrastructure such as power, water, and worker accommodation. Investors will receive a minimum of 100 hectares and are free to come up with their own designs.
