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- June 10, 2025
- Building, Construction
- 02 Mins
Inadequate Skilled Labourers And The High Cost Of Labour
Skilled labourers are becoming an endangered species in the construction industry. There is a growing concern about the shortfall of craftsmanship in our society, especially in the building industry. In Nigeria, the rapid growth of urbanization is generating a high demand for shelter, yet it is difficult to find the equal specific skills needed. Quality jobs depend on specific skills, but skilled laborers are few and cannot meet the demand for premium services.
The construction sector has been experiencing a steady decline in the number of skilled workers, with a shortage of over 1 million skilled laborers in 2022, according to the National Bureau of Statistics. This shortage has severe consequences, including project delays, high labour costs, and budget overruns. Many construction projects in Nigeria experience delays due to the shortage of skilled laborers, with some studies suggesting that up to 75% of projects are affected.
This shortage of skilled laborers in Nigeria’s building industry has far-reaching consequences. Construction companies are forced to pay higher wages to attract and retain skilled workers. The average wage for skilled construction workers in Nigeria has increased by 20% in the past two years. Moreover, it can lead to budget overruns, as construction companies may need to hire more expensive laborers or pay overtime to meet project deadlines. Also, construction projects in Nigeria experience an average cost overrun of 15% due to labor shortages.
A significant proportion of skilled laborers in Nigeria are aging, and many are retiring or leaving the industry. Many young Nigerians are no longer interested in pursuing careers in skilled trades, preferring white-collar jobs instead. This trend has resulted in a shortage of skilled laborers, particularly in specialized crafts like POP, cabinetry, and tiling. To get the services of these skilled laborers, you need to entice them with better offers, thereby inflating the cost of labor.
Professionals who desire specific skilled services often pay much to engage the few skilled laborers available in Nigeria. Some even seek craftsmanship from other West African countries like Ghana, Togo, or Benin Republic, which have taken over the workforce in Nigeria’s building industry. You can’t boast of decent interior work without the services of skilled laborers from these countries.
To address this issue, investing in vocational training programs can equip young Nigerians with the skills needed in the construction industry. Construction companies can also offer apprenticeships to young people, providing them with hands-on experience and training. Effective project management can also help mitigate the impact of labor shortages by ensuring projects are well-planned and executed efficiently. By understanding the root causes of the shortage and implementing these solutions, we can ensure the growth and development of the construction industry in Nigeria.
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