Latest Prices of Building Materials in Nigeria

The building material markets are among the biggest markets in Nigeria because structures are being erected daily – private houses, commercial houses, malls, churches, schools, mosques, office buildings, and other infrastructural development.

The prices of building materials in Nigeria have been fluctuating upwardly ever since the incidence of Covid-19. This is in addition to the rise of the dollar against the naira upon which the Nigerian economy depends.

The prices of building materials in Nigeria varies depending on the currency exchange rate for imported materials, the quality of the product, the brand of the product, the location of the product and the principles of demand and supply among other unforeseen factors. 

With various building materials available in the market, we’ll look at some of the most common indispensable materials required for a building project. It should be noted that the list below contains products that are manufactured in Nigeria and outside Nigeria and are readily available in markets all over the country.

Current Prices of Building Materials in Nigeria

FACTORS AFFECTING THE PRICES OF BUILDING MATERIALS IN NIGERIA

Some factors have been pointed out to be responsible for the variation and fluctuation of the prices of building materials in Nigeria. We are going to be looking at these factors in the following paragraphs.

Exchange Rate

The exchange rate is a crucial variable linking a nation’s domestic economy to the international market, it does affect the prices of building materials in Nigeria. Thus, the choice of an exchange rate regime is a central component in the economic policy of developing countries and a key factor affecting economic growth.

Converting one currency to another is no constant or static matter. The comparative value of the U.S. dollar (USD) to the Nigerian Naira (Naira), for example, has changed greatly in the last several years – the U.S. dollar is consistently gaining over the naira. Exchange rate matters because as one nation’s currency exchange rate decreases, the importation of goods to that country becomes expensive while its exportation becomes cheaper to other countries. Thus, any time the Nigerian naira exchange rate decreases over the U.S. dollar, the prices of building materials in Nigeria and of goods and services go up.

Product Quality

The quality of a product can affect the prices of building materials in Nigeria. A high-quality building material would cost more than low-quality ones. The price difference could be as high as multiples of 3 or even more. Sadly, here in Nigeria, many low-quality products are widely sold because most Nigerians care less about quality. Rather, they play the cost-cutting card and choose products that cost the least prices.

The most important thing to note about the prices of building materials in Nigeria however, is that high-quality products could be expensive, but they provide long-term value and peace of mind and are cost-effective in the long haul. Imagine that you have to choose between a US-made kitchen sink that costs N45,000 (for example) and a China-made model that looks almost like it and has the same features but costs N15,000. If you go for the cheaper option, you might have spent more than N50,000 on subsequent repair and replacement over the next 15 years, while the high-quality option keeps serving you for decades without any need for repair.

Brand

The prices of building materials in Nigeria can be affected by the brand name of the product. Some brands command higher prices than others, not necessarily because their products are all that better than others, but because they have established a reputation for quality over the years. That’s why you’d see Nigerians opting for goods that have a name rather than a cheaper brand. It’s not always about popularity; sometimes it’s just because the brand has been widely perceived as being synonymous with high quality.

Location

The location of an individual can affect the prices of building materials in Nigeria. This is one factor that beats the imagination of many Nigerians, but interestingly, there seems to be nothing anyone can do about it. From the earliest days of this country, products generally sell at higher prices in some locations than in others. For example, a 9-inch building block can go for N270 per piece in places like Lagos and Ibadan, yet the same product would sell for as much as N330 or even N370 per piece in places like Awka or Abuja.

Principle of demand and supply

The law of supply and demand affects the prices of building materials in Nigeria. The principle which dictates that a product’s availability and appeal impact its price, is one of the best-known principles in economics. It defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. 

In other words, the demand and supply of goods affects the prices of building materials in Nigeria. When there is an increase in the demand for a good and less in its supply, its prices tend to go up. Similarly, when there is an increase in the supply of a good and less of its demand, its prices tend to go down.

It is also important to note that price changes in the prices of building materials in Nigeria affect demand and supply. Generally, as the price of good increases, suppliers are willing to supply more while its demand may be less; people buy less of a particular product if the price increases and more if the price decreases. Although, the prices of some goods can increase without reducing demand which means their prices are inelastic. Inelastic goods tend to include items such as medication or food that consumers deem crucial to daily life.

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