Nigeria can reduce construction costs through local production, says Jude Chime

He highlighted that persistent inflation and exchange rate volatility have dramatically increased the cost of imported construction components, leading to project delays and reduced profitability for contractors. Chime emphasized that while economic reforms have created immediate pressures, they also present an opportunity for Nigeria to accelerate local manufacturing, thereby reducing reliance on imports and exposure to external shocks. He advocated for government policies that support productive sectors like construction and manufacturing through investment incentives, concessionary financing, tax breaks for local manufacturers, and simplified regulatory processes.

Chime also stressed the importance of addressing delayed payments on government contracts, streamlining tax and regulatory frameworks, and adopting innovative funding models like Public-Private Partnerships and leveraging domestic capital from pension funds and insurance companies to bridge the infrastructure financing gap. He concluded that investing in construction, with its high employment multiplier effect, is crucial for job creation, local content development, and overall economic growth in Nigeria.