Experts proffer local production as solution to inflation, forex crisis

Experts have harped on the need to boost local production to mitigate challenges of inflation and forex fluctuations.

They urged the government to offer assistance and create avenues that promote sourcing of materials locally.

Head, Projects, HEREL Global, Ose Ogbeide, disclosed this during a training programme organised for youths by the firm, especially undergraduates, which held with the theme ‘Establishing Yourself in the Real estate Industry’ in Lagos.

He said the prevalent challenge in local production was absence of expertise but called for adequate investments as a solution.

“Many of the building construction equipment especially for finishing are imported from Europe and Asia such as elevators, light fittings and tiles. The only things that could be gotten locally are granite and sharp sand in the building sector and I know that if someone opens a line for importing from China at a cheaper rate everyone would start purchasing from them,” Ogbeide said.

He explained that inflation and forex fluctuations have been the major causes of the increase in the number of abandoned building projects in Nigeria.

He stated that the process of sourcing and sorting forex has caused delays in executing projects as intended even as initial budget for projects are no longer sufficient.

“For us, we have our in-house research team that studies the trend, and then from that trend they would be able to know what to pick and what to postulate ahead because for something that is not within your immediate control, you obviously have to adapt to trend, and part of adapting is thinking of a survival mechanism, and that means to anticipate it even before it comes because it is something that we have seen. If you studied the last three, four or five years in the construction industry, you will realise that construction has become more expensive, not because the prices are just going up in themselves, but time value of money has happened,” he added.

Speaking on mitigating the challenge of fraud in the sector, Head of Business Development, HEREL Global, Olatade Daranijo, said every client should engage the services of a lawyer, surveyor, valuer and consultant before purchasing any property.

He noted that real estate sales are neither marathon nor sprint.

Daranijo harped on the need for Nigeria to embrace regulations, saying it would place the country in a good stead globally.