In a bid to boost the nation’s economy and reduce the cost of building materials, the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has announced plans by the Federal Government to establish building materials manufacturing hubs in the six geo-political zones across Nigeria. The Minister also revealed the Federal Government’s openness to investments by both foreign and local investors.
The plan was detailed in a press release issued by the Director of Information and Public Relations, Ministry of Housing and Urban Development, Badamasi S. Haiba on Saturday, August 3rd, 2024.
According to the release, the Minister made the announcement when he received the Executive Chairman, Zheng Xiaopeng and Vice Chairman, Yiwu China-Africa Business Council, High Chief Mike Yousuf Ugwu, on a courtesy visit to his office in Abuja.
Arc. Dangiwa disclosed that the hubs would be strategically located in Sagamu (South West), Aba (South East), Warri or Asaba (South South), Ajaokuta (North Central), Kano (North West), and Gombe (North East).
He expressed the ministry’s vision, stating, “We want to build hubs where industries or factories will produce building materials. This project is designed to attract investment, create jobs, and enhance local production capacities.”
The Minister emphasized the ministry’s openness to collaboration, inviting investors to fund, manage, and recoup their investments before transferring ownership to the government.
“So, that is our invitation. We want to collaborate with any investor willing to bring funding to build the hub, even if it is two or three hubs, manage it, recoup the investment then give us after recouping the investment,” he said.
Addressing security concerns, the Minister assured that the chosen locations are secure and already host existing building materials markets, making them ideal for such hubs. He highlighted the comprehensive nature of the hubs, explaining, “These hubs will include facilities like power, water, and housing for workers to ensure they remain comfortable and productive.”
The scope of production at these hubs will cover essential building materials such as roofing sheets, ceilings, tiles, and doors. This localized production aims to cut down on import costs, create jobs, and boost Nigeria’s economic growth.
Notably, the Minister informed that the ministry was not going to present any form of design to any investor, urging them to bring up their own designs to suit the ministry’s concept. “We cannot give you design since you have taken our concept, ” he noted.
In a detailed explanation of the project, Arc. Dangiwa revealed that each hub would span a minimum of one hundred hectares and could be scaled as small, medium, or large, depending on the investor’s capacity. Investors are expected to bring in their manufacturing machinery and equipment, further integrating modern technology into the local industry.
The minister also drew parallels to the successful Chinese model of building material hubs, where items are produced domestically and then exported. “We aim to replicate this model in Nigeria to reduce importation costs, create jobs, and foster economic development,” he noted.
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He further made known the intention of the government to make all the building materials manufacturing hubs designated free zones areas.
In his remarks, High Chief Mike Yousuf Ugwu, representing the Yiwu China-Africa Business Council, praised the initiative describing it as a good vision to move the housing sector forward. He recounted their successful housing projects in Kenya and expressed confidence in their ability to collaborate effectively with the Nigerian government. “Funding is not an impediment for us,” he assured, highlighting their readiness to invest in the project.
Chief Ugwu sought clarity on the free zone status of the hubs, where machines and equipment to be shipped in for use would enjoy free import duties, aside the items manufactured in the factories. He emphasized the importance of making them free zones so as to make the venture attractive to investors. “This gesture would make it attractive for us and our partners to invest in the building materials manufacturing hubs being proposed by the ministry,” he noted.
In response, the Minister confirmed the free zone designation, reiterating the government’s commitment to creating a favorable investment climate.
