Stakeholders blame the country’s poor roads and aging infrastructure for disrupting domestic supply chains and weakening the competitiveness of manufacturing.
Organized by the Construction and Engineering Group of the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with the Real Estate and Financial Services Group, the event themed “The Built Environment: Economic Impact, Sustainability and Future Development.” Lectured at a one-day seminar.
Joseph Segun Ajanlekoko, Chairman, Commonwealth Association of Surveying and Land Economics (CASLE) Nigeria needs at least N35 billion annually until 2040 for infrastructure needs, with annual losses due to lack of road maintenance amounting to N80 billion.
He added that Nigeria’s infrastructure deficit stands at 30% of gross domestic product (GDP), which is below the international standard of 70% and Nigeria’s score of 48.33 out of 100.
“Nigeria ranks 24th out of 54 African countries in the 2020 African Infrastructure Development Index (AIDI).Of the 195 km road network, only 60,000 km are paved and these roads The cost of one kilometer of asphalt road in Nigeria is estimated at N1 billion, which is four times the average cost of one kilometer of asphalt road in other African countries. ,” he said.
He expressed concern over the spate of building collapses in Nigeria, saying the country had seen an astonishing 604 building collapses in the past 50 years, with 135 incidents occurring in the past three days.
He pointed to incompetence and failure to comply with building codes and standards, as well as a lack of long-term, cheaply available capital to propel the industry. He said abandoned projects were another issue affecting the industry, with more than 60,000 abandoned buildings estimated to be worth more than NOK 17 trillion.
LCCI Chairman Gabriel Idahosa said the sector contributed 5.1% to the gross domestic product (GDP) in the first quarter of 2024, accounting for $26.4 billion of the country’s output value. He said the sector plays an important role in promoting employment in both the formal and informal sectors, employing more than 8 million people.
He lamented the lack of infrastructure, saying Nigeria needs to invest $3 trillion over the next 30 years to close infrastructure gaps, especially in housing, transport, water and electricity. However, he said this poses a major problem as access to finance remains very poor.
LCCI Construction and Engineering Sector Group Chairman Adesuji Aderemi Adeniji said the sector was beset by rising infrastructure costs, high interest rates, volatile exchange rates, rising energy prices and technological capability gaps.
