FG to set up building materials hub acquires 200 hectares in Lekki Free Trade Zone

Federal Government has acquired 200 hectares of land within the Lekki Free Trade Zone, Lagos, for a building materials hub aimed at lowering housing production costs nationwide. Minister of Housing and Urban Development, Mr Ahmed Dangiwa, disclosed the development during a tour of industrial areas within the Lekki and Lagos Free Zones, as reported by the News Agency of Nigeria. He said that the hub is intended to promote local content in the construction sector, curb rising building material costs, encourage domestic production, and support sustainable housing delivery across the country. Dangiwa added that similar hubs are planned for each of Nigeria’s six geopolitical zones. “The Federal Government has secured 200 hectares of land within the Lekki Free Trade Zone, Lagos, for a building materials hub to reduce housing production costs. The Minister of Housing and Urban Development, Mr Ahmed Dangiwa, disclosed this during a tour of industrial areas within the Lekki and Lagos Free Zones,” the NANA report read in part.  
According to the minister, the hub will be supported by intermodal transport infrastructure—including seaports, airports, railways, and roads—to ensure efficient operations. He said that an investor has already been secured to kickstart the project, which is expected to reduce reliance on imported materials, save foreign exchange, and create jobs through local manufacturing. In August 2024, the Federal Government announced plans to establish building materials hubs across Nigeria’s six geopolitical zones to boost local production, reduce import dependence, create jobs, and support affordable housing nationwide.
The 2025 budget under the Federal Ministry of Housing and Urban Development included provisions for these hubs. The choice of free trade zones, including the Lekki Free Trade Zone, allows the government to offer incentives such as exemptions from import duties on machinery and equipment, while ensuring convenient access to infrastructure , including seaports and major roads for efficient operations and distribution. Other Locations include Sagamu (Ogun), Aba (Abia), Warri/Asaba (Delta), Ajaokuta (Kogi), Kano (Kano), and Gombe (Gombe). Each hub will produce roofing sheets, ceilings, tiles, and doors, and provide essential infrastructure such as power, water, and worker accommodation. Investors will receive a minimum of 100 hectares and can submit their own designs.