Forex Turbulence, Soaring Costs Shake Nigeria’s Construction Sector

Nigeria’s construction and real estate sectors are navigating treacherous waters as currency volatility and skyrocketing material costs combine to threaten growth, delay projects, and test the resilience of even the most seasoned developers.

At a recent media briefing, Victor Ameh, CEO of Legendary Foreshore, painted a stark picture of the challenges gripping the industry.

According to him, developers are grappling with “serious supply-side shocks,” most notably a relentless surge in the cost of reinforcement materials and other critical building inputs.

“The sector is under tremendous pressure,” Ameh said. “With foreign exchange access tightening and policy unpredictability from the Central Bank, developers are struggling to source essential materials. Prices are climbing almost daily, and many projects are feeling the squeeze.”

The effects are immediate and tangible. Imported components, which underpin much of Nigeria’s construction activity, are becoming increasingly more complex and more expensive to secure. Coupled with escalating domestic material costs, this results in a perfect storm that threatens both project timelines and margins.

Despite these headwinds, Legendary Foreshore has maintained operational stability. While Ameh did not divulge specific strategies, he emphasised that resilience stems from proactive internal measures designed to safeguard project delivery.

“When you ask how we’ve held our ground amid such volatility, the answer lies in adaptability and foresight,” he said. “We are actively planning for the future, positioning ourselves to not only survive but thrive as the market evolves.”

Ameh also highlighted the importance of industry collaboration. Legendary Foreshore intends to deepen engagement with construction companies nationwide to explore shared challenges and identify innovative solutions that can stabilise the sector.

The broader implications for Nigeria’s construction industry are clear: unless developers, financiers, and policymakers respond decisively, the combination of forex scarcity and material inflation could slow infrastructure development, stall housing projects, and increase costs for end-users.

For stakeholders, the path forward will demand creativity, agility, and an unwavering focus on strategic partnerships. As the market adjusts to these shocks, only those who can anticipate, adapt, and innovate will lead the sector into a more stable and prosperous future.