Affordable housing
in Nigeria has become as popular with successive governments and private
individuals as the recurrent decimals in government policies when the later
talks of giving the populace dividends of governance.
The inability to
define the word ‘affordable’ and situate it within the climes of origin has
remained the reason Nigeria has not been able to tackle the challenges
militating against provision of affordable housing to its teeming population.
This is so because when we talk of affordability, we are to consider a lot of
factors that relate to cost, comfort, proximity to markets, church, mosque,
recreational facilities and office. In that wise, the availability of essential
facilities with commensurate pricing makes an accommodation affordable to the
particular person in question.
The challenges of
providing affordable housing in Nigeria are very well known and have been
rehearsed over and over to the extent that Nigerians rather doubt there is
anything new to add. The challenges highlighted are therefore not new and are
listed more by way of reminder of the issues that need to be addressed with
sincerity if government is serious about tackling the massive housing deficit
in Nigeria and in particular the provision of affordable housing.
The latest figures
available indicate that Nigeria has an estimated population of 170 million
people, which is growing by approximately 2.8 per cent per annum going by World
Bank report. It is also estimated that there is an 18-million-unit deficit in
housing stock and that Nigeria needs to build approximately 700,000 housing
units annually if it is to make a noticeable impact on the deficit. Presently,
Nigeria is barely building 100,000 housing units annually.
The true scale of
the housing deficit challenge can be seen from the fact that it is estimated
that 108 million Nigerians are ‘homeless’ based on an average family of six
people per housing unit.
Giving insight into
the problems of affordable housing in the country, Mr. Longe Eguarekhide,
President, Pension Fund Operators Association of Nigeria (PenOp), said that
land availability is key in the provision of affordable housing.
He said,”land at
affordable rates is critical to any housing plan anywhere in the world, more so
in Nigeria as the potency for economic transformation that a coordinated
housing strategy portends should make governments contribute land for free as
future municipal taxes could recover the cost of this equity.
According to Mr.
Dele Martins, who delivered a keynote address during the unveiling of a new
brand for Knightstone Properties Limited recently, several factors have been
adduced by analysts and experts in the real estate and allied sectors for the
absence of affordable housing in Nigeria.
These include:
•Unfavourable
government policies, lack of mortgages for potential buyers and unstable
investment environment.
•Difficulties and
lack of transparency associated with acquiring affordable land for the
development of affordable housing, as well as the bureaucracy associated with
obtaining title documents to acquired or transferred land.
•Exorbitant cost of
consent and other fees associated with the transfer of land.
•Unavailability and
difficulty of accessing affordable mortgages for the purchase of houses by
individuals.
•Bureaucracy and difficulties
associated with obtaining building and other regulatory approvals for the
construction of affordable housing.
•The high and
escalating cost of building materials and over dependence on imported building
materials.
•Non-alignment of
the interests of the various stakeholders particularly the developers,
commercial and mortgage banks on the one hand and the intended beneficiaries of
affordable housing on the other. The former wants to maximise profit while the
latter wants housing that is cheap, decent and affordable.
•Unstable and
unfavourable exchange rate policies.
•Absence of fiscal
incentives by government to make affordable housing development attractive.
•Lack of provision
by government of the primary infrastructure required to support the development
of affordable estates including roads as well as access to water and
electricity.
•Indiscipline and
corruption in the implementation of affordable housing schemes.
“I have no doubt
that more items can be added to the above list but for present purposes, it
gives us an idea of what issues need to be tackled. The importance of housing
to the citizenry in Nigeria could be underscored by the fact that it is
mentioned immediately after food on the list of needs of man.
“If we are to
succeed in our claimed quest for the provision of affordable housing to the
citizens of Nigeria and in particular, low income earners, there is an urgent
need for government at all levels to approach the subject holistically,
sincerely and with a great deal of commitment.
“Government at all
levels need to lead the formulation of a comprehensive policy designed with the
input of all stakeholders, and implemented with zeal and vigour at all levels.
At the heart of every policy must be the interests of the target beneficiaries
of affordable housing.
“In essence, there
is a need to work to a predetermined answer starting from a clear definition of
what constitutes affordable housing not only in Nigeria as a whole but in each
sub-region or division of Nigeria. What is affordable in Lagos State may
constitute luxury in Oyo State and what is affordable in Badagry will differ
from what is affordable in Ikorodu and each case depends on the prevailing
socio-economic conditions in each locality or sub-division,” he said.
Martins further said
that after determining what is affordable for each locality or region, an
appropriate design of house should now be made to fit the benchmark for the
relevant area.
“As much as
possible, the construction materials to be used should come from the locality
or region in which the affordable housing is to be constructed so that
employment is generated for the local people and cost of construction fits the
relevant local profile. In fact, local artisans and contractors should be
encouraged to form themselves into cooperatives to bid for the supply of local
construction materials,” he noted.
He said, “the design
of house should start from prevailing living conditions and, without
transforming the prevailing culture or way of living, simply aim to put in more
order, structure and functionality, as well as the basic facilities which any
dwelling unit should have.
“An individual whose
income level can only support a bedsit or face-me-I-face-you would not be able
to afford a one-bedroom flat and an affordable housing scheme based around
one-bedroom flats would simply disenfranchise him. On the other hand, an
individual can start from a decent bedsit or face-me-I-face-you and gradually
move up the ladder as his economic condition improves.
“Once we have a
tailor made design of house that links affordability to prevailing income and
earning capacity, all stakeholders on the supply side including banks, mortgage
institutions and developers led and galvanised by government should work
towards delivering housing that is within the predetermined budget that is
affordable to the target beneficiary.
“Government has the
lion’s share of the responsibility not in building the houses but in setting
and enforcing the necessary policies that ensure that the desired goal is
achieved. The fact that government controls all land within its jurisdiction
should make it easy to knock practically all other stakeholders on the supply
side into line and ensure that they deliver a product that is affordable to the
ultimate target beneficiary.
“Government is also
responsible for providing primary infrastructure or creating an enabling
environment for the private sector to do so and charge a predetermined price
that is affordable to those who will use the infrastructure by way of toll for
roads and charges for water and electricity. The important thing is that there
must be no room for profit maximisation. The charges must reflect transparent
cost plus a reasonable margin to ensure that investment is recouped over a reasonable
long term period. In fact, once the infrastructure is constructed, government
should facilitate its sale to long term investors desiring a steady and regular
income stream so that the developer can take its money and move to the next
project,” he concluded.
In the words of Mr.
David Obodoeze, an interior decorator, government is also responsible for
ensuring that there is extreme transparency in the process of allocating land
for the development of affordable housing in each locality. He said the price
payable for such land should obviously reflect the earning capacity of the
people who live or are targeted to move there.
“The payment of such
price should be deferred till after completion of the project and should be
collected in affordable instalments directly from the ultimate beneficiary over
a long term period.
“There are huge
untapped and idle funds in the country, which government should harness and
find a way of channelling into the development of affordable housing by giving
the necessary backing and guarantees to the owners of such funds especially
those who desire a steady income stream over a long term period,” he stressed.
Real estate, vehicle
for wealth creation, says expert
By Sampson Unamka
Chief Executive
Officer, Common Sense Group (CSG), Mr. Olumide Emmanuel, has said that real
estate still remains the vehicle for wealth creation in the country.
Emmanuel, who made
this known while speaking at the Pertinence Limited international business mega
summit and promo launch in Egbeda, Lagos, said “real estate is the secret
because you see, when it comes to creating wealth, you need vehicles.”
According to him, in
the world of finances, people talk about vehicle of wealth creation and that
means there is a vehicle that takes you from your present financial situation
to your desired financial destination.”
He said: “What we
are trying to do is to help people understand
that for you to get to your desired financial destination, you need to
choose the right vehicle. And one of the best vehicles you can choose is real
estate. That’s what we are pushing down today, the power of real estate”.
He, however, noted
that a lot of people want to create wealth, be financially free and also be
sure that when they retire, all will be well with them. But they don’t know how
to go about it, adding that real estate is a secret to achieving those dreams.
Speaking on the
promo launch, the Co-Founder and Executive Director, Marketing and Business
Development, Pertinence Limited, Wisdom Ezekiel, said: “The international
business mega summit is a platform where we want to launch our international
penetration. Before now, we’ve been doing business in Nigeria. But as I speak
to you now, we have new businesses in the United Kingdom, United States and
even in Dubai. So we are using this platform to launch that step we have
taken,” said Ezekiel.
He said the company
decided to make its programmes memorable and also to give back to the society
and to people who have been loyal to it over the years, by giving out free
plots of land, an all-expense-paid trip to Dubai. and a two-bedroom apartment
to their customers.
Eko Atlantic City
unveils first residential building
Eko Atlantic City,
the unique and innovative development in a vibrant environment with 21st
Century facilities on the coast of Lagos, is set to celebrate a client’s major
development with the unveiling of the first completed residential building –
the Eko Pearl Towers.
The development
comes in addition to the commissioning of the Eko Boulevard, Nigeria’s first
eight-lane city road last year.
Eko Pearl Towers,
the first residential development in Eko Atlantic City, is a set of high-rise
buildings, privately owned and developed by the leading Eko Pearl Construction
Company. The development, which is situated about 500 meters away from the
financial centre of Lagos on Eko Atlantic City, consists of five high rise
residential towers, each topped with deluxe penthouse types, two and three
bedroom apartments exuding a luxurious home experience with a view of the Lagos
coastline. It will be unveiling the
first tower, the Black Pearl, with the second, the Champagne Pearl, scheduled
to be completed in 2017.
The Eko Pearl Towers
will range from 24 – 33 floors; four apartments per floor, two apartments on
the royal penthouse floors, a technical floor, terrace floor, a ground floor
and a basement floor. Facilities at the new residential building include a
pool, tennis court, squash court, fitness centre, meeting rooms, lounges and
leisure areas suitable for families and professionals.
Ongoing developments
by other clients in Eko Atlantic City include the Azuri Peninsula, the Eko
Energy Estate and Alpha 1. The Marina district is one of the most stunning
residential and commercial hubs in Eko Atlantic, offering city living at its
finest. A sweeping pedestrian promenade encircles the Marina offering inspiring
views in every direction, from the sleek ocean-going yachts to the ultra-modern
architecture. Strolling into the vibrant piazza will reveal a myriad of al
fresco bars, world-class restaurants and enticing boutiques forming a stylish
and cosmopolitan place to meet.
Speaking on the
development, the Vice Chairman, South Energyx Nigeria Ltd, Mr. Ronald Chagoury
Jr., said the completion and unveiling of the Eko Pearl Towers marks a
significant milestone for the Eko Atlantic project.
“We are very excited
to see the city come to life, with the first set of residents moving into the
city and we look forward to the completion of other landmark projects within
the city,” he said.
Eko Atlantic City is
expected to provide homes to about 450,000 residents and 300,000 commuters.
Stories by Maduka Nweke
manweke@gmail.com
08034207864
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