By Maduka Nweke
A ccollective effort is required to tackle Nigeria’s affordable housing crisis, as real estate stakeholders acknowledge the limitations of individual initiatives.
They argue that under the current National Policy on Housing, the roles of the government and the private sector are defined and explicit. According to them, the government is saddled with the responsibility to provide an enabling environment to facilitate the performance of the private sector, while the policy pushes for a significant shift from dependence on government for the private sector to play the leading role and be the chief driver for housing delivery.
In his contribution to ameliorating housing problems, Mr. Moses Ogunleye, former President, Association of Town Planning Consultants of Nigeria, (ATPCON) noted that it is the duty of the government to provide accommodation for its citizens. “Focusing on Nigeria’s housing deficit requires the collaboration of the public sector providing an enabling environment with the private sector vigorously driving housing delivery. It is imperative for Governments at all levels, and dub-nationals especially, to strive to create the enabling environment for affordable housing development. This includes providing the appropriate legal and operational frameworks to reduce transaction costs and time as well as incentives to encourage private sector investments.
“The role of the fifth estate, the media sector, cannot be overemphasised. Members of the Press are critical to the dissemination of information to enable the public to make decisions for the general improvement of society. We appreciate your good work and encourage your continuous commitment in the service to the nation, “she noted.
Speaking on the role of the Federal Government in contrast to the Private sector, the Managing Director and CEO of Federal Mortgage Bank of Nigeria (FMBN) Mr. Shehu Usman Osidi, said the private sector has a critical role to play in bridging Nigeria’s housing deficit. Private sector organisations in the industry must look beyond strictly financial gains, to explore and leverage innovative (albeit less financially rewarding) models, such as public-private partnerships (PPPs) with the Bank or the Federal Ministry of Housing & Urban Development, and through joint ventures, to develop affordable housing projects.
“Thus, private sector players are the drivers of business and the main catalyst for change and progress in any sector, and it is no different in the supply of affordable housing. Among some of the benefits of private sector participation in affordable housing supply include but not limited to; increased efficiency and effectiveness in housing delivery, improved quality of housing units, increased access to affordable long-term finance and job creation and economic growth.
“Private sector investors also look towards other avenues for generating revenue from housing projects beyond just the sale of units for maximum value by integrating commercial properties such as schools, shopping malls, and other utilities to enhance value to residents within the estates delivered and ultimately provide long term returns to investors.
“On the part of the government, efforts are being made to encourage private sector funding in the supply of affordable housing. One major step was the development of the Model Mortgage and Foreclosure Law aimed at de-risking the mortgage sub-sector by establishing clear costs and timelines for the issuance of title and grant of consent and approvals, as well as streamlining the foreclosure process in the event of loan default. It is commendable that some States have adopted the Model Mortgage and Foreclosure Law which is currently being reviewed into a Mortgage Administration Law. Additionally, progressive States have adopted electronic Geographic Information Systems (e-GIS) to remove ambiguities around land issues
“I would like to emphasise that affordable mortgages and the contributions of the private sector are critical to catalysing housing demand and supply in Nigeria. As a Bank, FMBN is committed to working with all stakeholders to increase access to affordable housing finance and promote private sector participation in the housing sector.