With the recession leaving major players in the real estate bruised, experts have said that the return to growth of the nation’s economy should be driven by the construction industry.
The real estate and construction sectors have been reeling from the stains of the financial crisis, meltdown of the housing market and loss of jobs. But the experts, who comprises egghead in the industry believe that both sectors can promote growth through its links to other manufacturing sectors, such as the transport infrastructure.
A new report released by the European Commission suggested that every job created in construction results in two additional jobs elsewhere. “Construction is a bellwether of the economy, and, crucially for a bloc toiling to create jobs, generates local employment. It is the single largest economic activity and the biggest industrial employer.”
Essentially, the experts said that the sectors have an important role to play in stimulating Nigeria’s recovery. However, it needs the right economic incentives and regulatory framework that will compel the use of local raw materials in the industry to reduce the over dependence on imported raw materials.
President, Commonwealth Association of Surveying and Land Economy (CASLE) Olusegun Ajanlekoko told The Guardian, “construction Industry has always been seen globally as the barometer of the economic well being of a Nation. The current situation of the country, therefore, cannot but be worrisome. The parlous situation is worsened by the recent hike in cost of cement. It is sad development as the resultant effect on the cost of construction is definitely going to be no less than 40 per cent as cement is a major component and cost sensitive element of the construction Industry.”