Current Forex Scarcity Presents Challenges, Potential Opportunities for Construction, Says NIOB

The current scarcity of forex in Nigeria presents presents challenges and potential opportunities in the nation’s construction industry, the Nigerian Institute of Building (NIOB) has said.

The President of NIOB, BDLR (SIR) Alderton Ewa

Ewa, “As a Nation faced with the present impact of foreign exchange (forex) on construction, it is important to note that it is multifaceted, presenting both challenges and potential opportunities.”

The president, represented by the Lagos State chapter’s chairman, BLDR Adeoye T. Adeyemi, stated this at a press conference in Lagos to mark the Builders’ Day 2024, whose theme is, “The Role of Builders in Sustainable Housing Delivery.”

He said the challenges are, “Increased cost of imported building materials: A significant portion of construction materials in Nigeria are imported, and fluctuations in the exchange rate can drastically affect their prices. This makes project budgeting and cost control more difficult. An example can be seen in the recent cost of cement.

“Limited access to foreign currency: Due to forex scarcity, construction companies might struggle to access the foreign currency needed to import essential materials, leading to project delays. Reduced investment: Uncertainty surrounding the forex market can discourage foreign investors from entering the Nigerian construction sector, hindering potential growth and innovation. Erosion of profit margins: Construction companies face pressure to maintain profit margins amidst rising material costs, potentially leading to compromises in quality or project delays.”

The potential opportunities, he said are: “Stimulation of local production: The high cost of imported materials can lead to the development and expansion of local production of building materials, fostering economic diversification and job creation.