HOW will you assess the housing sector in the last 65 years of Nigeria’s independence
Nigeria prides itself in gaining political independence in 1960 but to me, the bondage of Nigerians today is more grievous than we were under the colonial rule. Looking at it from all angles, there is no indication of freedom. Our social, economic and political lives are tied to the desires of the colonial masters. The housing sector has not faired so well because it has suffered so much epileptic policy direction and weak political will. Today, it is rumoured or estimated that the housing deficit is in the region of over 20 million units. Even at a very unrealistic and conservative estimate of an occupancy ratio of 2 persons per habitable room; then we have not less than 40 million persons who are critically in need of decent houses to live. This is to say the least, embarrassing and undesirable. Despite the huge intervention of the private sector in housing by increasing the quantitative availability, affordability of the houses is a problem. Though Nigeria’s housing sector has shown resilience and some positive momentum, especially in the last few years, it is still not well enough. Government initiatives, growing recognition of housing as a priority, innovative models, and increasing private sector engagement are all good signs but they end up as issues in political manifestos. Giving housing a head-on, pragmatic response is still far-fetched. On the whole, the gap between policy/initiative and lived reality is still large. The majority of people who need decent, affordable housing are still priced out, unable to access mortgages, burdened by high rents, or forced into informal housing or overcrowding. If, in the first quarter of the 21st century, some Nigerians are still living in terrible slums, shanties and under bridges in our National capital, State capitals and major settlements, we can conclude that a lot still needs to be done in the housing sector.
Can you say that Nigerians have been properly housed?
As indicated earlier, Nigerians are not properly housed. Apart from the deficit, prices of housing and rents are getting out of reach for an average Nigerian; indeed, they rise much faster than wages. Many Nigerians spend 40-60% of their income on rent, far above the recommended 25-30%. The level of informal housing is high as innumerable number of Nigerians live in slums, informal settlements, or overcrowded conditions without any physical plan for their development and access to safe water, sanitation, or reliable electricity and other basic services. This would also account for incessant building collapses which remain a recurring tragedy, reflecting weak enforcement of standards.
What are major achievements in the housing sector and notable challenges?
There are some achievements made by government over the years. First is knowing that Nigerians need to live in decent houses. It is said that knowing a problem makes it half-solved. In the public sector, a lot of investments have been such as low-cost houses during Shagari regime and other similar interventions by successive administrations upto the current Renewed Hope Housing programmes. But these programmes were simply political programmes whereby they make a lot of noise declaring outrageous number of housing units and building only few. Even the few that are built go to their cronies as rewards for political patronage. Other interventions include the establishment of financial and mortgage institutions such as Federal Mortgage Bank of Nigeria, National Housing Fund, Family Homes Fund, Nigerian Mortgage Refinance Company and related agencies. The private sector has also made significant impact on housing through acquisition of land for mass housing and constructing them in different parts of the country. Some of the interventions include the rent-to-own programme which has provided an alternative for low to middle income earners. The private sector has also been involved in advocacy through institutions such the Housing Development Advocacy Network and the recently inaugurated Nathaniel Atebije Foundation for Planning Advocacy. Major achievements in the development of local building materials have been made through research by the Nigerian Building and Road Research Institute which has increased the use of local materials, prefabricated housing, and modular construction to reduce costs and speed up delivery.
The challenges that we still face include the lack of consideration of physical planning for housing interventions. Their locations within the settlement fabric are uncoordinated to make the needed impact. Most times they are cited out of immediate reach of the dwellers of the benefitting town hence, they face challenges of infrastructure, transportation, security and other environmental problems. Therefore, they are left unoccupied until they are vandalized and the houses become useless and wasted investment of public funds. High cost of land, building materials, and finance keeps housing out of reach for the majority while mortgages remain unaffordable due to high interest rates and short tenures. The Land Use Act (1978) is outdated, creating bottlenecks in land acquisition and titling. Numerous housing policies and masterplans have been developed, but weak implementation, corruption, and lack of political will undermine progress.
Can you say the government of the day is living up to expectations in the housing sector?
I would say, not quite. Nigerians expected much more than what they are getting. The current administration launched what they call Renewed Hope Cities and Estates. Good as the idea may be, it was conceived and located without considerations of physical planning. Implementation in some of the States (including even the Federal Capital City – Abuja) did not pass through required planning approvals as prescribed by the Nigerian Urban and Regional Planning Act. Some of the positive efforts include the moves to strengthen the Federal Mortgage Bank of Nigeria (FMBN), expand mortgage access, and create special real estate investment funds (MREIF) showing intent to tackle financing gaps. Another is the strong collaboration with developers, cooperatives, and housing advocacy groups.
However, a lot of negative issues surround the expectations of the Nigerians. Less than two years into the first term of the current administration, efforts have been much on campaigning for a second term. Attention has tilted from housing to the hunger for retaining power. Meanwhile, affordability remains elusive as cement, steel, and land costs continue to soar; mortgage interest rates remain out of reach for the average worker; informal settlements keep expanding in cities, showing that housing supply for the poor is not matching demand; programmes are launched with fanfare, but delivery is slow, fragmented, and sometimes politicised; and, the massive infrastructure deficit as new estates are often poorly serviced with roads, water, and power, making them less attractive or unsustainable.
What are the solutions to the challenges in the sector?
The government needs to take some quick steps to resolve the challenges. First, there is the need to engage consultants to prepare master plans and other levels of physical plans for cities and major settlements in Nigeria. This will appropriately identify the areas of the settlements where housing would be located profitably (in terms of social satisfaction). There is the urgent need to review the Nigerian Urban and Regional Planning Law, which is over 33 years old, some parts of which are greatly inconsistent with contemporary demands of the Nigerian society. Other important steps to take would include reviewing the Land Use Act o 1978, digitize land records to make titles more secure; strengthen institutions by building the capacity of the Federal Mortgage Bank of Nigeria (FMBN) and state housing agencies to deliver affordable housing at scale; encourage cooperative housing schemes and provide targeted subsidies on land, infrastructure, or interest rates for affordable housing developers. There is the need to invest in local cement, tiles, timber, and alternative technologies (compressed earth blocks, bamboo, prefab); provide incentives for developers by giving tax breaks or reduced duties for developers who commit at least 40-50% of projects to affordable housing. Encourage land-for-housing exchanges whereby government can provide serviced land to developers in return for affordable units. The Federal Government, as a form of technical assistance to the States should embark on upgrading informal settlements by providing basic infrastructure (water, sanitation, roads).