Can 5 Million Build a House In Nigeria? (2024)

The cost of building a house in Nigeria can be tricky. You can only get an estimate, not a precise price. But building a house is not like buying a house; the prices are not fixed from the starting and foundation stages to the last finishing touches. With the current increase in the prices of goods, building materials, and labor costs are also expected to be more expensive.

So, this begs the question, ‘Can 5 million build a house in Nigeria?’ Building a house with this budget is possible, but there are factors and limitations to the standard you can get from a five million naira home in Nigeria. 

Different factors determine whether you can build a 5 million Naira house in Nigeria. Although it is not realistically impossible, you can compromise quality and timeline. In this article, we will answer your questions about the possibility of building a house on this budget.

Factors Affecting the Cost of Building a House in Nigeria

A few years ago, in 2021 or 2022, you could build something decent with a 5 million Naira budget. However, over the past year, the rising inflation has made it difficult, so to try and get along with this budget, you have to look at the following factors.

Location

One major factor to consider is location. Cities and urban areas are more expensive than rural settlements. Different regions can also offer less pricey alternatives, such as buildings in the North.

However, this factor should be the first thing on your mind. It is important to note that 5 million Naira would not be sufficient to build a house in certain cities in Nigeria. On the other hand, this budget might be enough to buy a house. You can explore various listing sites to get the best options, but Getcrib offers more than just listings. We help homeowners and potential buyers with many other amazing features.

Land Prices

The price of land is vital for many reasons. Building on a budget like this means you are limited to just half a plot, so it is essential to know prices in various locations. However, the location of the land might not be in the best part of town, but that is what comes with building on a 5 million naira budget in Nigeria.

Essentially, you might be compromising living close to access to the township for a lower price of land.

Labor Cost

The labor cost, from skilled to unskilled labor, is another part of this building project that goes into the budget. But on the brighter side, you can get a cheaper cost of labor with good negotiations or hiring workers who charge less.

But you want to be aware that there are sensitive sections you do not want to compromise the quality of cheap labor. A good example is hiring the best for vital parts like electrical and wiring projects while getting a decent worker for other parts where quality would not cause danger to lives.

Type and Size of House

You would be getting a small house for that budget, which is important to consider. In this 5 million naira budget, you cannot get more than three bedrooms; in some cases, the bathrooms might be shared instead of each room having its own. Regardless, the management in this building stage would go to the architect doing the drawings as they can figure out how to manage space, and size.

What Type of House Can You Build For 5 Million in Nigeria?

Luxury or leisure spaces are far from what you should expect with this budget. But if by any means this financial plan goes through, there are only a few handy options that would fit in.

A small bungalow is a reasonable house that this budget can afford. It usually consists of two to three bedrooms, one or two bathrooms, and a small corridor on the front.

You can also build a low-cost house, which is common in rural areas. Land is cheaper here, so you can start a foundation, build the structure from the ground up, add roofing, and even some designs.

What are the Alternatives to Building a House with a 5 million Budget in Nigeria?

If you do not want to deal with the hassle of running out of funds, there are alternatives to being a homeowner. The first option you can try is purchasing a house. Although you would have to lower your expectations for a budget of 5 million naira, there are some good deals. Now, Getcrib has some great deals on our listing, and you can check out some amazing properties.

Government housing and mortgages are other brilliant alternatives to explore. Payment upfront and possible interest may be some issues you must deal with, but a 5 million budget for a house in Nigeria.

Strategies and Tips: How You Can Build a 5 Million House in Nigeria

Although it might be challenging from the foundation down to every building and construction phase, good management can help you achieve this goal on a budget. Here are some tips to help get the best out of this limited amount; 

• Get affordable Materials: Building and construction items are increasing, but you can also get good deals from reliable suppliers. This might involve getting a surveyor quantity bill; this document helps you check the items needed for a project. That way, you can buy in bulk for discount prices and avoid shortages during the project.

• Optimize Labour Cost: Labour cost depends on various factors, and since it is not a fixed price, you can negotiate with workers who charge less per day. However,  you must hire workers skilled enough to do a decent job.
• Basic Design Plan: A small bungalow or something similar does not need a complex design. This move can save you some money on the architectural drawings rate and reduce the materials needed for the project.

Possible Challenges When Building a House on a 5 Million Naira Budget

Squeezing through this amount to build a house with the current inflation rate is challenging. So,  before you start a project like this, take note of some possible hurdles you might encounter.

Fluctuations in the prices of goods are the first problem you should consider. This can change as the day progresses, so be ready to tweak your plans as the project progresses. Another possible quagmire is a delay in construction, which may be caused by weather or accidents.

The last and most vital problem associated with working with a limited budget is the compromise on quality. Spending less on labor and building materials can reduce the output quality at the end of the building project.

Wrapping Up

Building a house in Nigeria on a 5 million naira budget is possible but requires careful planning, compromise, and resource management. Factors such as location, land prices, labor costs, and the type of house you wish to build will significantly impact your project. While a small bungalow or low-cost house might fit this budget, expectations must be adjusted to suit the realities of inflation and rising material costs.

In conclusion, although challenging, achieving a 5 million naira house is doable with strategic planning, affordable materials, and skilled yet cost-effective labor. Alternatives such as purchasing a house or exploring government housing schemes may also be viable options for aspiring homeowners working with limited funds.