FG Secures 200 Hectares in Lekki for National Building Materials Hub to Tackle High Housing Costs.
LAGOS, NIGERIA – In a major move to address Nigeria’s persistent housing deficit and combat the soaring cost of construction, the Federal Government has successfully acquired a 200-hectare parcel of land within the Lekki Free Trade Zone in Lagos.
This land will host the flagship hub for the local manufacturing of building materials, a critical component of a new national strategy to make housing more affordable for Nigerians.
The development was disclosed by the Honourable Minister of Housing and Urban Development, Mr. Ahmed Dangiwa, during an official tour of industrial facilities within the Lekki and Lagos Free Zones on Thursday, August 28, 2025. This initiative represents the first and most significant step in a nationwide plan to establish similar hubs in each of the country’s six geopolitical zones.
A Strategic First Step in a Prime Location
The choice of the Lekki Free Trade Zone for the inaugural hub is highly strategic. Minister Dangiwa emphasized that the location’s integrated, intermodal transport infrastructure—including direct access to a deep seaport, proximity to the new international airport, and connections to rail and major road networks—is crucial for the project’s success. This will facilitate the seamless importation of machinery and raw materials, as well as the efficient distribution of finished products across the country.
“The Federal Government has secured 200 hectares of land within the Lekki Free Trade Zone for a building materials hub to reduce housing production costs,” the Minister stated. He further revealed that the government has already secured a private investor to kickstart the project, signaling a strong market confidence and readiness to commence operations.
The primary objectives of the hub are to promote local content, curb inflation in the building materials market, encourage domestic manufacturing, save scarce foreign exchange, and create thousands of direct and indirect jobs.
A National Blueprint for Self-Sufficiency
The Lagos hub is the cornerstone of a broader national strategy first unveiled in August 2024 and included in the 2025 federal budget. The plan involves establishing a building materials manufacturing hub in each of Nigeria’s six geopolitical zones to create a robust, decentralized production network.
The designated locations for the other hubs are:
South-West: Sagamu, Ogun State
South-East: Aba, Abia State
South-South: Warri/Asaba axis, Delta State
North-Central: Ajaokuta, Kogi State
North-West: Kano, Kano State
North-East: Gombe, Gombe State
The Investment Model: A Public-Private Partnership
To ensure efficiency and sustainability, the Federal Government is adopting a Public-Private Partnership (PPP) model for the development of these hubs. Under this framework, private sector investors will be responsible for funding, designing, building, and managing the hubs. The government’s role is to provide the land and create an enabling environment with attractive incentives.
By situating the hubs within Free Trade Zones, the government can offer investors significant benefits, such as exemptions from import duties on machinery and equipment. After operating the hubs for a period long enough to recover their initial investment and make a profit, the facilities will be returned to the government. Investors are required to secure a minimum of 100 hectares and will be provided with essential infrastructure, including power, water, and accommodation for workers.
Addressing the Root of Nigeria’s Housing Crisis
This initiative directly confronts one of the biggest obstacles to affordable housing in Nigeria: the high cost of building materials. For decades, the construction industry has been heavily reliant on imports, leaving it vulnerable to global supply chain disruptions and volatile foreign exchange rates. This has consistently driven up construction costs, pushing the dream of homeownership out of reach for millions of Nigerians.
By domesticating the production of these key materials, the government aims to stabilize prices, guarantee supply, and foster innovation in the local manufacturing sector. This will not only make housing more affordable but also build a more resilient and self-sufficient national economy. The project is a clear indication of the government’s commitment to moving from policy pronouncements to tangible actions in solving the nation’s housing challenge.
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