Nigeria can significantly reduce the cost of construction by expanding local production of building materials, improving access to long-term finance and removing regulatory bottlenecks, the Chief Executive Officer of Elan Exhibitions West Africa, Jude Chime, has said.
Chime, who is also the convener of Mega Project Nigeria Expo, said persistent inflation, exchange-rate volatility, expensive financing, unreliable power and logistics constraints had combined to make project delivery increasingly difficult for contractors and developers.
Speaking on the challenges facing Nigeria’s construction industry, Chime said the prices of reinforcement steel, electrical cables, aluminium, imported elevators, HVAC equipment and glazing materials had risen sharply, leaving project quotations vulnerable to changes between planning and procurement.
“Quotations prepared at the beginning of a project are no longer valid by the time procurement starts because prices have moved so quickly,” he said.
He argued that the situation should push Nigeria to deepen domestic manufacturing rather than remain heavily exposed to foreign exchange movements and international supply shocks.
According to Chime, local production of steel, aluminium, glass, ceramics, cables, electrical fittings and other construction materials would reduce import dependence, conserve foreign exchange and create jobs across the manufacturing value chain.
He said the construction industry still had enormous growth potential because of Nigeria’s housing needs, population growth, urbanisation and infrastructure deficit.
The challenge, he said, was no longer demand but the ability to finance and execute projects at sustainable costs.
Chime called for concessionary financing, tax incentives for local manufacturers and simpler regulatory procedures to support businesses during the economic reform period.
He also identified delayed payments on government contracts as a major threat to project delivery.
“When contractors complete certified stages of a project but have to wait months before receiving payment, it creates a ripple effect across the entire value chain,” he said.
According to him, contractors still have to pay workers, suppliers and banks while maintaining equipment and keeping projects running. Delayed payments can therefore force companies to borrow at high interest rates, increasing the final cost of infrastructure.
He proposed project escrow accounts, payment guarantees and dedicated project accounts to ensure certified work is paid for within agreed timelines.
Chime also said Nigeria needed to broaden its infrastructure financing base beyond government budgets.
He advocated greater use of public-private partnerships, infrastructure bonds, pension funds, insurance companies, private equity and development finance institutions to provide patient capital for viable infrastructure projects.
“Government cannot finance Nigeria’s infrastructure needs alone,” he said.
The construction executive also pointed to insecurity, poor logistics and unreliable electricity as major cost drivers.
He said moving heavy equipment and materials from ports to project sites remained expensive because of congestion, poor roads and transportation delays, while dependence on diesel generators continued to raise operating costs.
Security challenges, he added, increase spending on site protection, insurance and logistics while discouraging long-term investment in affected areas.
Chime said improving transport infrastructure, electricity supply, security coordination and supply chains would lower costs and improve investor confidence.
He also urged greater adoption of technology, including Building Information Modelling, artificial intelligence, drones, digital twins, prefabrication and modular construction.
Such technologies, he said, could reduce design errors, minimise material waste, improve project monitoring and help contractors deliver projects more efficiently.
He acknowledged that high technology costs, limited financing, inadequate digital infrastructure and skills gaps remained barriers to adoption.
Chime said government, universities, professional bodies and private companies should collaborate on digital skills, modern curricula and incentives for technology investment.
His comments come ahead of the 10th edition of Mega Project Nigeria Expo, scheduled for August 25–27, 2026, at Landmark Centre, Lagos.
The exhibition is expected to bring together government agencies, developers, contractors, manufacturers, investors, financial institutions and technology providers to discuss infrastructure financing, housing, smart construction and sustainable development.
Chime said the ultimate goal should be to transform Nigeria’s infrastructure needs into opportunities for investment, industrialisation and employment.
“Investing in construction is not just about building physical infrastructure; it’s about building industries, creating employment and laying the foundation for long-term economic prosperity,” he said.
