Stakeholders in the housing sector are urging a reassessment of the 2024 housing budget to align with present conditions.
Speaking exclusively to The PUNCH, the Executive Secretary of the Association of Housing Corporation of Nigeria emphasized the necessity of revising the budget projections for the year.
“In the span between January and now, significant changes have occurred in the economy,” he stated. “The exchange rate has exceeded initial projections, leading to unforeseen inflation and sharp spikes in commodity prices due to instability in the foreign exchange market. For example, cement, which was priced at less than N5,000 during budget preparation, now sells for over N10,000. It’s clear that a budget review is not only necessary but crucial to achieving its intended goals.”
In the same vein, Femi Oyedele, Managing Director of Fame Oyster & Co. Nigeria, echoed these sentiments, highlighting the need for budget reassessment given the current unrealistic conditions, particularly with the soaring costs of essential construction materials.
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“The government routinely reevaluates the budget to ensure its practicality,” Oyedele explained. “Despite the exorbitant prices of vital building materials like iron rods, cement, sand, and gravel, the budget needs to reflect these realities. Budgets are essentially planning tools and must adapt to economic circumstances.
Given the present economic climate, a review of Nigeria’s housing budget is imperative.”
In the Nigerian housing scene, the issues of finance are fast becoming critical amid calls for a reassessment of the housing budget.
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