According to the increase rate on constructing buildings, the stakeholders in the housing sector has urged for review of the housing budget to meet up with current realities in 2024.

From the news gathered, the Executive Secretary of the Association of Housing Corporation of Nigeria said the review of the this year budget projection is paramount.

He said, “Between January and now, so many things have changed in the economy. The exchange rate has gone up beyond every projection initiated at the beginning of the year as a parameter for budget preparation. With a sudden rise in the exchange rate, which has surpassed the initial figure used in preparing the budget for the year, inflation and a sudden and sharp rise in prices of goods caused by the instability in the foreign exchange market have eroded all parameters.

“Cement for instance was selling for less than N5,000 when the budget was being prepared and is now selling for over N10,000. The review of the budget is not just necessary but germane and more than important in actualising the purpose of the budget.”

Also speaking, Femi Oyedele, the Managing Director of Fame Oyster & Co. Nigeria, added that it is customary for the government to reassess the budget due to the unrealistic nature of current conditions, particularly with soaring prices of key construction materials.

He said, “It is normal for the government to review the budget because it is no longer realistic despite the high prices of major building materials like iron rods, cement, sand, and gravel. It is through this process that the budget can be realistic.

“A budget serves as an anticipated outline of expenses and activities in project finance, functioning primarily as a planning tool rather than reflecting actual costs. Its adjustment may be necessitated by economic circumstances, particularly when there is a significant increase, prompting a need for review. In this current economic situation, the Nigerian housing budget needs a review.”