Impact of Naira Exchange Rate on Prices of Selected Construction Materials in Ekpoma, Edo State, Nigeria

Authors

  • B. O. Obaedo Department of Building, Ambrose Alli University, Ekpoma, Nigeria
  • G. E. Oseghale Department of Building Obafemi Awolowo University, Ile-Ife, Nigeria.

Keywords:

Construction, Exchange-rate, Material, Naira, Price

Abstract

This paper presents the result of the impact of naira exchange rate on prices of selected construction materials in Ekpoma of Edo state, Nigeria, by examining the trend in naira exchange rate values and selected construction material prices over a five (5) year duration and the impact of naira exchange rate on the price of selected construction materials. The study extracted information on monthly naira exchange rate values from the monetary authority’s database of the central bank of Nigeria and adopted a survey approach to gather information on the prices of selected construction material. Data obtained were analyzed using percentages, Pearson Correlation Coefficient and regression analysis. Findings revealed that there was a strong positive correlation between the naira exchange rate and construction material prices. The study recommends that the monetary authority should research and implement a naira exchange rate stabilization/reduction policy.

References

. T. Nyoni and W. G. Bonga. “An Empirical Investigation of factors affecting construction sector labour productivity in Zimbabwe” International Journal of Business and Management Invention, vol. 5(8), pp 68-79. 2016.

. H. Zhou and J. Zhao. “Analysis of Factors to cause the Price change of Building Materials” Advanced Materials Research, vol. 683, pp 668-671, 2013.

. B. Alabi. Effect of Building Material Cost On Housing Delivery Towards Sustainability. Unpublished Masters' Thesis, Cape Peninsula University of Technology, 2017.

. G. O. Bamigboye., T. Michaels., A. N. Ede., B. U. Ngene., C. Nwanko. and I. Davies. “The Role of Construction Materials in Building Collapse in Nigeria: A Review”. Journal of Physics: Conference Series, vol. 1378(4), pp 1-13, 2019. DOI:10.1088/1742-9596/1378/4/042022

. A. Elkhalifa and M. Shaddad. The Construction and Building Materials industries in Sudan. Retrieved from University of Khartoum, 2018. Website: http://khartoumspace.uofk.edu/handle/123456789/22085

. R. Rajaprabha., P. Velumani. and B. Jayanthi. “Factors Affecting The Cost of Building Materials in Construction Projects” International Journal of Science and Engineering Research, vol. 4(4), 2016.

. A. Idowu. and S. Winston. “An Appraisal of Control of Construction Materials in the Nigerian Building Industry: Case Study of Abuja, Nigeria”. Civil Engineering Research Journal, vol. 6(4), pp 108-113, 2018. DOI:10.19080/CERJ.2018.06.555695

. T. I. Umar. “An Analysis of the degree of Quality of Indigenous Building Materials used in Lapai Local Government Area of Niger State, Nigeria”. International Journal in Physical and Applied Science, vol. 4(8), pp 34-45, 2017.

. N. Maduka. Why Nigerians Prefer Foreign Building Materials. Retrieved June 6, 2020, from The Sun Nigeria: https://www.sunnewsonline.com

. P.O. Akanni., A. E. Oke. and O. J. Omotilewa. “Implications Of Rising Cost of Building Materials In Lagos, Nigeria”. Sage Open, vol. 1-7, 2014.

. H. Danso., N. K. Obeng-Ahenkora. “Major Determinants of Prices Increase of Building Materials on Ghanaian Construction Market”. Open Journal of Civil Engineering, vol. 8, pp 142-154, 2018. Retrieved from https://doi.org/10.4236/ojce.2018.82012

. A. Windapo. and K. Cattell. “Examining The Trends In Building Material Prices: Built Environment Stakeholders' Perspective”. Research to Practice, pp. 187-201, 2012.

. F. O. Oladipo. and O. J. Oni. “A Review of Selected Macroeconomic Factors Impacting Building Material Prices in Developing Countries- A Case of Nigeria”. Ethiopian Journal of Environmental Studies and Management, vol. 5(2), pp 131-137, 2012. Retrieved from http://dx.doi.org/10.4314/ejesm.v5i2.3

. O. J. Oladiran. Investigating the use of Local Building Materials for Building Construction. Journal of Sustainable Technology, 6(2), 10-21, 2015.

. A. Windapo, S. Odediran, A. Moghayedi, A. Adediran., & D. Oliphant. The determinant of Building Construction Costs in South Africa. Journal of Construction Business and Management, 1(1), 8-13, 2017.

. E. B. Mohamed. and S. Y. Mahmoud. “An Assessment of the Impact of Inflation on the prices of Selected Construction Materials in Sudan”. International Journal of Multidisciplinary Research and Publications (IJMRAP), vol. 2(12), pp. 41-44, 2020.

. Central Bank of Nigeria. Monthly Average Exchange Rates of the Naira(Naira Per Unit of Foreign Currency) - 2016. Retrieved April 16, 2020, from Central Bank of Nigeria https://www.cbn.gov.ng/rates/exrate.asp?year=2016

. A. F. Anoka. and N. Takon. “Exchange Rate Depreciation and Government Policy in Nigeria: Empirical Evidence”. International Academic Conference in Dubai (IACD), vol. 4(3), 2014.

. B. A. Otieno. “Econometric Modelling of Short Run Parsimonious and Long Run Co-Integrated Real Exchange Rate Determinants in Kenya. African Journal of Education, Science and Technology, vol. 3(3), 2017.

. Alley. I. “Oil Price and USD-Naira exchange rate crash: Can Economic Diversification save the Naira?” Science Direct Energy Policy, vol. 118, pp. 245-256. 2018.

. Central Bank of Nigeria. "Foreign Exchange Rate" Research in Education Series Number 4. Research Department. Lagos: Central Bank of Nigeria, 2016.

Downloads

Published

2020-12-19

How to Cite

Obaedo , B. O. . ., & Oseghale , G. E. . (2020). Impact of Naira Exchange Rate on Prices of Selected Construction Materials in Ekpoma, Edo State, Nigeria. American Scientific Research Journal for Engineering, Technology, and Sciences, 74(2), 114–123. Retrieved from https://www.asrjetsjournal.org/index.php/American_Scientific_Journal/article/view/6238

Issue

Section

Articles