THE IMPLICATIONS OF COSTS OF BUILDING MATERIALS IN QUALITY HOUSING IN LAGOS METROPOLIS: LEKKI (ETI-OSA LGA) AS A CASE STUDY.

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Abstract

Over the past 10 years, there has been a dramatic increase in the costs of building materials in Nigeria, and this development threatens the performance of the construction industry. The objective of the study was to assess the implications of cost of building materials on the quality housing in Lagos Metropolis. A case study of Lekki (Eti-Osa LGA). The study employed a descriptive survey research design. The respondents involved were selected based on simple random sampling technique and the statistical tools employed to analyse the data collected were percentages while the inferential statistics of T-test (x2) was used to test the stated hypotheses at 0.05 level of significance. The data pertaining to factors affecting and the implication of rising cost of building materials were sourced from the main contractors, builders’ merchants and consultants. The data on the prices of building materials were obtained from the archives of the The Nation Newspaper, Lagos QS News Letter, and field survey of builders’ merchants in 2017. The averages of the prices were used in the calculations of price indices and rates of inflation on building materials. The three most rated factors responsible for the rising cost of building materials are the exchange rate of the Nigeria Naira, cost of fuel and power supply, and changes in government policies and legislation, while fluctuations in the construction cost; reduced volume of construction output, and risk of project abandonment, were the three most rated implications. The study concluded that the implications could result in a downward effect on the gross domestic product (GDP) in the nation’s economy.The study revealed that cost of building materials affect housing development in Lekki. The study further revealed that there is a significant knowledge of quality of housing among residents of Lagos Metropolis. Based on the findings of this study, recommendations and suggestions were made for Quantity surveyors, Architects, Builders Engineers, Main Contractor and Building material merchants and relevant agencies for further research.

 

Keywords: building materials, cost, factors, implications, Lagos Metropolis

 


 

TABLE OF CONTENTS

Pages

Title Page                                                                                                                               i

Certification                                                                                                                          ii

Declaration                                                                                                                           iii

Dedication                                                                                                                             iv

Acknowledgement                                                                                                               v

Abstract                                                                                                                                 vi

Table of Contents                                                                                                                 vii

List of Tables                                                                                                                                    ix

List of Figures                                                                                                                       x

 

CHAPTER ONE: INTRODUCTION

1.1       Background of study                                                                                                           1

1.1.1   History of Lekki                                                                                                       4

1.2       Statement of the Problem                                                                                        5

1.3       Aim and Objectives of the Study                                                                           6

1.4       Research Questions                                                                                                 6

1.5       Research Hypotheses                                                                                                          7

1.6       Significance of the Study                                                                                        7

1.7       Scope/Limitations of the Study                                                                             7

1.8       Definition of Terms                                                                                                 8

 

CHAPTER TWO: LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

2.0       Introduction                                                                                                              9

2.1       Concept of Building                                                                                                11

2.2             Concept of Housing Affordability                                                                        17

2.3       The Total Cost of Building Materials                                                                   19

2.4       Increasing Building Materials Costs: Causes and Effects                                             20

2.5       Benefits of Sustainable Building Materials in Housing Development                        22

2.6       Effect of building materials cost on housing development                              24

2.7       Benefits of Local Building Materials                                                                    27

2.8       Factors Affecting the Cost of Building Materials                                                           31

2.9       Implications of Rising in the Cost of Building Materials                                              32

2.10    Knowledge of quality of housing among residents of an urban community  35

2.11    Ways of Minimizing Cost                                                                                       37

2.12    Summary of Literature Review                                                                              38

CHAPTER THREE: RESEARCH METHODOLOGY

3.0        Introduction                                                                          40

3.1        The Research Study Area                                              40

3.2       The Research Design                                                                  40

3.3        Population of the Study                                                                                         40

3.4       Sampling Procedure                                                                                                 41

3.4.1   Sample Size                                                                                                               41

3.5       Instrument for data Collection                                                                               41

3.6       Data Analysis                                                                                                                       42

 

CHAPTER FOUR: DATA ANALYSES, CONCLUSIONS AND RESULTS

4.0       Introduction                                                                                                              43

4.1       Presentation of Demographic Data (Section A)                                                  43

4.2        Analysis of Research Instrument                                                                          46

4.3       Analysis of Data and Testing of Hypotheses                                                       47

4.4       Discussion of Findings                                                                                            48

 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0             Introduction                                                                                                              53

5.1             Summary of the Study                                                                                             53

5.3       Conclusion                                                                                                                55

5.4       Recommendations                                                                                                   55

       References                                                                                                            57

      Appendix                                                                                                                62


 

 



LIST OF TABLES

Table 1: Theorised causes/factors for incessant building material cost increases          21

Table 2: Research Hypothesis One Table                                                         45

Table 3: Research Hypothesis Two Table                                                        46

Table 4: Pearson Correlation Analysis of Cost of Building Materials (CBM) on Housing Development in Lekki (HDL).                                                             48

Table 5: Pearson Correlation Analysis of Knowledge of Quality Housing (KQH) Among Residents of Lagos Metropolis                                                             52


 

LIST OF FIGURES

Figure 1:        Study Area map of Lekki Eti-osa LGA                                                    8

Figure 2:        A story masonry bearing wall building.                                                   13

Figure 3:        A braced frame building.                                                                            14

Figure 4:        Building foundation in Lekki.1                                                                 15

Figure 5:        Building foundation in Lekki 2                                                                 16

Figure 6:        Roofing                                                                                                          17

Figure 7:        Distribution of Participants by Gender                                                    43

Figure 8:        Distribution of Participants by Age                                                                      43

Figure 9:        Distribution of Participants by Level of Education                                            44

Figure 10:      Distribution of Respondents by Role in Construction                           45

 


 






CHAPTER ONE

INTRODUCTION

1.1   Background of study

The construction industry in Nigeria is upcoming industry; the sector is regarded as a catalyst for growth while its performance serves as an indicator of the nation’s economy (Akanni, Oke, & Akpomiemie, 2014). It is supported by the association of construction players, which encompass developers, contractors, building material and equipment suppliers, manufacturers, financiers, regulators, and others in the value chain.

Researchers in building sector have indicated that between 50 to 60 per cent of the total construction input goes into building materials. As a result, there is an urgent need to address the high cost of these products which is said to have slowed down the growth of the building and construction sector in Nigeria. Building materials constitute the largest single input in housing construction. While Adedeji (2010) observed that about sixty (60) per cent of the total housing expenditure goes for the purchase of building materials, Arayela (2005) averred that the cost of building materials constitute about 65 percent of the construction cost.

Building materials have been playing an important role in the construction industry—they are those materials put together in erecting or constructing structures. In fact, no field of engineering is conceivable without their use. Building materials contribute immensely to the quality and cost of housing, from what is used in the foundation to the materials for roofing and finishes, while the building materials industry is an important contributor to the national economy of any nation as its output governs both the rate and the quality of construction work. (Greene & Rojas, 2008).

Ogunsemi (2010) opined that building materials form the main factors that restricts the supply of housing and ascertained that they account for between 50-60 percent of the cost of buildings. Thus, Adedeji (2002) rightly observed that one main barrier to the realization of effective housing in Nigeria as revealed in successive government efforts has been the cost of housing in the country. He argued that in the early periods, shelter in Nigeria was easily affordable as building materials were sourced from the immediate environment at affordable costs. Technology also was readily available with commensurate simple techniques. But contact with the outside world through interregional and international training of professionals in foreign countries as occasioned by colonization, brought changes to tastes and hence outlook to house forms. These changes rendered the undeveloped local building materials inadequate while there was an increased demand for exotic ones. Accordingly, Arayela (2012) posited that the modern building industry lays much emphasis on sophisticated building materials and techniques that are expensive and energy consuming. Though, housing delivery efforts have evidently been inhibited by prohibitive costs of building materials, this problem cannot be reasonably and reliably overcome by merely resorting to the use of locally available materials without due considerations to the applicable initiative, the cost of processing and sustainability of the local materials. One of the most important components of a sustainable building is the material efficiency. Correct selection of building materials can be performed by taking into account their complete life span and by choosing products with the minimal environmental impacts. For instance, González and Navarro (2006) estimated that the selection of building materials with low environmental impacts can reduce carbon dioxide (CO2) emissions by up to 30%. The use of renewable and recycled sources is widely encouraged as the life-cycle of a building and its elements can be closed (Chwieduk, 2003). The major factor that greatly affect the selection of building materials are their costs and social requirements such as thermal comfort, good mechanical properties (strength and durability), aesthetic characteristics and an ability to construct quickly. Ideally, the combination of all environmental, economic and social factors can give a clear description of a material, and thus helps in a decision making process regarding the cost of the materials suitable for buildings (Abeysundara et al., 2009). Nigerians would continue to pay more for accommodation in major cities until the cost of building materials is subsidized through probably through tax reduction. The instability in the price of building materials was posited as a direct result of high taxes which in turn impacts on the cost of accommodation in major cities across the country. According to Arayela (2012) many completed housing estates had remained unoccupied because of the high rental and sale prices attached to them as against the meager income of the average Nigerian workers. He also added that if government can revitalise our industrial base, the cost of building materials will come down and many more people would be able to build houses. He therefore urged the Federal Government to provide tax relief for local manufacturers and importers of building materials in order to reduce the high cost of accommodation in major cities.

The cost of building materials poses a significant threat to both the construction industry and people aspiring to own houses; for example, a bag of cement, which was valued at Ν1,350.00 in 2006, went as high as Ν1,850.00 in 2009 depicting about 37% increment; it was Ν2,000.00 in 2015 during peak season (Field Survey, 2015), then in 2016 the price fluctuated between N1,800 – 2,000. As of today Tuesday 11th July 2017, a bag of cement is being sold between the rate of N2,700 – N3,200.

 The continuous slump in the value of the naira is another contributing factor to the rising cost of building materials. Increase in the prices of building materials has multiplier effects on housing development, many projects are not completed on time due to the cost of materials which have been on the increase. Besides timely completion, high prices of building materials form a crucial constraint to improving housing conditions in Nigeria (United Nations Centre for Human Settlement [UNCHS], 2003).

In spite of the past studies on the cost of building materials in Nigeria, little is publicized about the implications of the rise in cost on the construction industry; most literature (Jagboro & Owoeye, 2004; Mekson, 2008; Njoku, 2007; Oladipo & Oni, 2012) has concentrated on identifying the causes with little emphasis on the implications; hence, the research seeks to provide information on implications of cost of building materials in quality housing in lagos metropolis.

1.1.1 History of Lekki

Lekki is a city in Lagos State, Nigeria. It is located to the east of Lagos city. Lekki is a naturally formed Peninsula, adjoining to its west Victoria Island and Ikoyi districts of Lagos, with the Atlantic Ocean to its south, Lagos Lagoon to the north, and Lekki Lagoon to its east; however, the city's southeast which ends at around the western edge of Refuge Island, adjoins the eastern part of Ibeju-Lekki LGA.

The city is still largely under construction; As of 2015, only phase 1 of the project has been completed, with phase 2 nearing completion. The Peninsula is approximately 70 to 80 km long, with an average width of 10 km. Lekki currently houses several Estates, gated residential developments, agricultural farmlands, areas allocated for a Free Trade Zone, with an airport, and a sea port under construction. The proposed land use master plan for the Lekki envisages the Peninsula as a "Blue-Green Environment City", expected to accommodate well over 3.4 million residential population and an additional non-residential population of at least 1.9 million.

Part of the modern day Lekki (phase 1) in the Eti-Osa LGA was formerly known as Maroko, a slum, before it was destroyed by the Raji Rasaki led Lagos State military Government. Lekki phase 1 currently has got a reputation as an area with some of the most expensive real estate assets in Lagos State.

1.2 Statement of the Problem

Building materials have been playing an important role in the construction industry—they are those materials put together in erecting or constructing structures, no field of engineering is conceivable without their use (Akanni, 2006; Udosen & Akanni, 2010). Building materials contribute immensely to the quality and cost of housing, from what is used in the foundation to the materials for roofing and finishes, while the building materials industry is an important contributor to the national economy of any nation as its output governs both the rate and the quality of construction work.

The cost of building materials poses a significant threat to both the construction industry and people aspiring to own houses (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007). For example, a bag of cement, which was valued at Ν1,350.00 in 2006, now goes as high as Ν3,130 to Ν3,500  in 2017 depicting about 61% increment (field survey, 2017). Supporting this view, Jagboro and Owoeye (2016) earlier established that increase in the prices of building materials has multiplier effects on housing development while Idoro and Jolaiya (2016) affirmed that many projects were not completed on time due to the cost of materials, which have been on the increase. Besides timely completion, high prices of building materials form a crucial constraint to improving housing conditions in Lekki (United Nations Centre for Human Settlement [UNCHS], 2007).

In spite of the past studies on the cost of building materials in Nigeria, little is publicized about the implications of the rise in cost on the construction industry; most literature (Jagboro & Owoeye, 2004; Mekson, 2008; Njoku, 2007; Oladipo & Oni, 2012) has concentrated on identifying the causes with little emphasis on the implications; hence, the research seeks to provide information on the effect of cost of building materials on housing development in Nigeria.

1.3 Aim and Objectives of the Study

The aim and objective of the study is to investigate the implications of cost of building materials in quality housing in Lagos Metropolis.

The following are the objectives of this study:

1.               To examine the effects of the cost of building materials on housing development

in Lekki.

2.               To determine the factors responsible for high cost of building materials in Lagos

Metropolis.

3.               To determine the level of knowledge of quality housing in Lagos Metropolis.

4.               To proffer solutions that can reduce the cost of building material to ensure

adequate housing development in Lekki


1.4 Research Questions

1.  What is the effect of building materials cost on housing development in Lekki?

2.  What are the factors responsible for high/low cost of building materials in Lagos

     Metropolis?

3. Is there any knowledge of quality housing among residents of Lagos Metropolis?

4. What are the solutions that can reduce the cost of building material to ensure adequate housing development in Lekki?


1.5 Research Hypotheses

HO: Cost of building materials does not affect housing development in Lekki.

H1: Cost of building materials does affect housing development in Lekki.

H0: There is no significant knowledge of quality housing among residents of Lagos Metropolis

H1: There is a significant knowledge of quality housing among residents of Lagos Metropolis


1.6 Significance of the Study

The following are the significance of this study:

 Findings from this study will educate the general public on the current market cost of building materials in Lekki, Eti-Osa LGA of Lagos state and its effect on sustainable housing development.

The results of this study will sensitize the policy makers and the government on the need to make and implement policies that will reduce the cost of building materials in Nigeria thereby encouraging massive housing development all over the country.

This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field.

1.7 Scope/Limitations of the Study

This study on the effect of cost of building materials in quality housing in Lagos Metropolis: Lekki, Eti-Osa LGA of Lagos state as a case study will cover the current prices of building material in Nigeria focusing on how it has influenced the provision of affordable housing for the Nigerian populace.

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

 Fig 1 Study Area map of Lekki Eti-osa LGA

 

1.8 Definition of Terms

Building: is something built with a roof and walls, such as a house or factory.

Building material:  is any material which is used for construction purposes. Many naturally occurring substances, such as clay, rocks, sand, and wood, even twigs and leaves, have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use, some more and some less synthetic.

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