Subsidy: Property developer laments labour, building materials price hike
The chief executive officer (CEO) of Convvy Estates Limited, Samuel Oni has lamented the current cost of labour and building materials triggered by removal of fuel subsidy by the federal government, saying, it is affecting the cost of housing units in the country.
The Convvy boss, who disclosed this to newsmen in Lagos, revealed that the cost of labour and building materials have skyrocketed, saying, he has been working around his finances and work’s ethics without compromising standards.
He said: “within the estate, we do some basic things by ourselves. Let me let you know that the cost of labour has also gone up. A mason or carpenter now collects N7,000 instead N3,500. We have to go back to the drawing board to look at our operation, then scale it down so that we will be picking it gradually. We are not stopping work, we are progressing but our activities are based on scale of preference.”
Due to these challenges, he said, the prices of the housing units have been affected, adding that, the increase in price is tied to the present economic challenges.
“Housing units’ prices ranged from N55 million for outright purchase. The same unit can’t go for that in the next 12 months. When we started, the price was N48 million. The fuel subsidy removal is affecting our bottom line if you look at it very well,” he said.
He disclosed the 2025 deadline for the delivery of all the housing units, pointing out that, one uniqueness about the estate was that, immediately you subscribed and made payment, subscribers get all their documents immediately.
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He added that, lack of transparency in the area of documentation remains one of the reasons Nigerians in Diaspora are wary of investing in housing back home.
Oni said:” When we showed interest in investing back home in Nigeria, we said we wanted all the documents to be perfected before selling any of the property. And that’s what we are doing in Convvy Estate. As you subscribe to our estate and make full payment, you get all the documents.”
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