Business
How Corruption Hampers Building Industry Dev – Expert
Former President of the Nigeria Institute of Building (NIOB), Mr Chucks Omeife, has identified corruption as a major problem affecting development of the building industry.
Omeife made the observation in an interview with newsmen in Lagos, yesterday.
He said that corrupt practices among developers and some authorities that grant building approval documents constitute greater part of the problems confronting the industry.
Omeife said that some developers, in an attempt to earn huge income, fail to obey the ethics, code and conduct of the industry.
He said that the building code states that every stage of building construction must be approved by the state’s physical urban planning office and other responsible authorities.
According to him, some developers, however, embark on building projects without first obtaining the necessary documents from the state government and relevant authorities.
“Even the few developers that claim to meet the responsible authorities for necessary approvals usually settle the offices with cash, such that necessary examinations and visitations to sites may be skipped.
“If every stage of building construction can undergo screening and have proper approvals as stated in the building code, the incidence of building collapse will be a thing of the past.
“This is because before the authority approves any project, it will ensure that appropriate human/material resources and other necessary conducts that will ensure structural stability of the building are in place,” he said.
Omeife urged the authorities in charge of granting the building approvals to be more proactive in discharging their duties, and to refrain from colluding with developers for selfish interest.
He also identified greed of some developers as a factor that needs to be addressed, if the industry must grow.
According to him, some developers usually cut corners during construction processes and in the building materials they use, in order to maximize profit.
He said that materials like rods, gravel, sand and cement, among others, as major materials for construction, must be mixed and applied in their right proportions for good results in construction work.
“Until operators in the industry refrain from some of the sharp practices, the sector may not record significant growth,” he said.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
