Impact of fuel subsidy removal on building materials in Minna

Abstract

These instructions comply the subsidization in pump price of fuel subsidy in Nigeria help many Nigerians Minna in petroleum and its products in various ways which make life easy for them. There cent total removal of fuel subsidy has thrown Nigerian to great hardship making It difficult for an average Nigerian to talk of owning a house of him/herself. This study, Assessment of Impact of total subsidy removal on building materials is targeted at Investigating the current cost of building materials after the total removal and the cost of building material before the total removal of fuel subsidy. The study uses market survey to gather the data used for the study. Cost index was used for the analysts of the collected data. The results shows that there is high variation between the cost of building materials before the total removal of subsidy and after the removal of subsidy. The variation in the cost of Reinforcement, Y20, YI6 are #113 900 and #6.800 per length respectively. For Portland cement, the variations are: Lafarge #3,300 per bag, others area #2,700 Wood 2x11 and 2x6 have the highest variation of #500 and #400 per length respectively. The study concluded that the total removal of fuel subsidy has serious impact on the prices of building materials. consequently, high cost of building project and housing development in Nigeria. It was recommended that active price control board be setup by the government to monitor prices of building materials