Lagos – A former Chairman, Nigeria Institute of Town Planners (NITP), Lagos Branch, Mr Makinde Ogunleye, on Monday said the performance of the building construction industry was low in 2015.
Ogunleye stated this in an interview with the News Agency of Nigeria (NAN) in Lagos.
He attributed the poor performance of the industry to political, economic and security factors.
Ogunleye said that the falling oil prices contributed to the down turn of activities in the industry in the out-going year.
According to him, the security challenge was another major factor which scared some investors away from the industry.
He said that the declining oil prices, accompanied by persistent increase in exchange rate discouraged many people from investing.
“Many investors, particularly the foreign ones are not convinced of the security of their investments in the property industry.
“Due to the long-term nature of building construction projects, some investors prefer to invest in other areas where they can recoup their investments within a short period of time,’’ Ogunleye said.
He said that the sector recorded more developments in 2014 in contrast to 2015.
According to him, a lot of housing projects were carried out in 2014 and these contributed to the developments and achievements recorded during the year.
Ogunleye urged the government to inject more money into the building construction industry to enhance its growth and performance in 2016.
He suggested that the government should revamp the mortgage system and provide other incentives to encourage investments in the sector.
“I believe that by the time the new government and ministers settle down to work in 2016, the economy will improve.
“The sector will record more growth, being the highest employer of labour and a key driver of the economy, ‘’ Ogunleye said. (NAN)