Analysis of Inflation on Building Materials Used in Construction Projects in Abuja, Nigeria

Résumé fourni par la source

Scholars in the built environment have identified inflation as a major bottleneck in the construction industry. With the aforementioned in mind, this study aims to examine the effect of inflation on building materials used in construction projects in Abuja, Nigeria, with a view to enhancing real estate construction and mitigating the effects of inflation on construction. The research examines the rate of inflation in Nigeria between 2019 and 2024, and the level of variation in the prices of building materials used between the selected periods. An exploratory research design was adopted for this study using both primary and secondary sources of data. Two sets of questionnaires were administered to the target population, one to the property owners, while the other was administered to Real Estate Developers in Abuja. Using stratified sampling techniques, structured questionnaires were administered to the respondents, and 95 (63.33) and 210 (52.50) were retrieved from the target population using descriptive statistics. Key findings reveal that the rate of inflation increased from 11.40% in 2019 to 26.31 in 2024. This consequently affected the prices of building materials, which also witnessed significant increases during the period. Results of the ANOVA reveal statistically significant differences in the prices of building materials between 2019 and 2024, with p-value ≤ 0.05. In addition, the results of the eta squared showed that inflation influences the variations in the prices of building materials by 70.5%. The study concludes that policy formulations and intervention strategies are essential in a bid to mitigate the effects of inflation and enhance real estate development. The study recommended that the government and private organizations should offer grants, subsidies, and low-interest loans to make construction more accessible in Nigeria