Fuel Costs and Poor Regulatory Enforcement Undermine Construction Sector’s Growth, Driving Up Project Expenses and Causing Market Uncertainty

The sustainability and growth of Nigeria’s vital construction industry are being severely stifled by the dual pressures of escalating fuel costs and a weak regulatory environment, according to industry experts. The combination is driving up the cost of projects and creating significant uncertainty for developers and contractors nationwide.

Speaking at the fifth edition of the Big 5 Construct Nigeria event in Lagos, Emeka Azuh, a Technical Adviser at 7Fifteen Capital Limited, warned that the government’s failure to implement existing policies and strengthen regulatory bodies is directly undermining the sector.

“Escalating fuel costs are a direct and indirect driver of expenses in the construction value chain, affecting everything from logistics to material pricing,” Azuh noted. “However, the key challenge is implementation. Some policies already exist that can positively benefit the industry, but weak regulatory enforcement creates an uncertain and costly operating environment.”

The expert emphasized the urgent need for government action to create a more resilient industry. He specifically called for regulatory bodies to be granted greater legal strength, suggesting that building codes should be embedded into law to ensure contractors and developers adhere strictly to national standards.

Azuh further dismissed concerns about the capacity of local professionals, stating that Nigerian architects and engineers often perform on par with or even exceed international standards. The core issue, he concluded, lies not in skill but in the systemic failure to establish and enforce a consistent regulatory framework that mitigates the shocks from high operational costs like fuel.