Editorial
Addressing The Housing Deficit
Statistics contained in a press release issued penultimate week by the Federal Mortgage Bank of Nigeria (FMBN) shows that Nigeria’s current housing deficit stands at 16 million, while a whopping 42 trillion naira was required to address the situation.
The secondary Mortgage institution also disclosed that with a population of over 140 million people, recording an annual growth rate of 2.5 per cent and rural-urban migration rate of 5 per cent, the country needed to add no fewer than 350,000 housing units to the current housing stock, on annual basis, if it hopes to achieve the Millennium Development Goal on housing.
The agency, however, assured that it is rising to the challenge of housing revolution in Nigeria through a number of activities including efforts at attracting funds through the linkage of the sector to the international capital market. It says it would encourage the formation of housing cooperatives to give individuals access to mortgage facility especially those in the informal sector that constitute at least 85 per cent of Nigerians.
This is not the first time the FMBN is alerting the nation on the housing crisis and advertising some flamboyant programmes aimed at stimulating the much needed housing revolution.
In 2007, the FMBN through the collaboration of various state governments advertised its mortgage scheme to workers in both the public and private sectors. Workers were then encouraged to open account with recommended primary mortgage institutions and compulsory deductions were made from time to time to enable them qualify for housing loan after a minimum period of six months. More than three years after, it remains to be seen how many of such applicants that have succeeded in accessing the housing loan.
Given the fact that such loan has eluded salaried workers who are known to have a guaranteed source of repayment, for this long, we doubt FMBN’s optimism that another scheme targeted at non-salaried informal sector would succeed through the formation of housing cooperative societies.
This fear becomes even more palpable when viewed against the fact that cooperative society development in Nigeria has been stifled over the years due to lack of a reliable legal framework, unstable economy and poor enlightenment.
Again, FMBN did not record any impressive success within the chain of primary mortgage institutions, government or public sector employers and salaried workers, how does it hope to make any difference with non-salaried informal sector cooperative societies or is the FMBN simply struggling to remain relevant in the campaign for the achievement of the Millennium Development Goals (MDGs)?
We agree with the President of the Nigerian Institute of Surveyors and Valuers (NIESV), Mr. Bode Adediji who said recently that the bane of the Nigerian housing industry is ‘double standard policies’.
On one hand, the FMBN advertises for patronage of its loan programmes while on the other, it plans various bottlenecks limiting access to the facility by applicants.
Also, while the Federal Government would want to encourage the production of cheaper and affordable building materials in the country, which is a sine qua non for the success of any mass housing scheme, it consistently throws its borders open to the importation of all kinds of building materials. In the same manner, the governments would claim to be engaging in mass housing for workers, but one regime would abandon housing programme started by its predecessor or where it is completed such houses are shared to public office holders and their aides. These inconsistencies indeed amount to double standard policies that inhibit progress.
It is our view that governments and their agencies should refrain from such merry-go-round housing policies and concentrate their efforts at creating the enabling environment that would stimulate the much desired housing revolution.
One way of doing this, is to plough adequate resources towards mapping out housing areas, especially at the urban centres where the housing crisis is most palpable. Also, the provision of basic infrastructure and amenities such as roads, water, electricity, schools, health centres and police posts in such areas would help to rekindle the interest of private and individual developers.
While this is done, various bottlenecks hindering access to housing loans to workers in both the public and private sectors and other private developers should also be removed to enable them access such loans and build.
But above all, government must encourage the local manufacturing of cheaper building materials as well as enforce its building codes to ensure affordability and sustainability.
Shelter is a basic necessity of life and access to housing should be one of the indices for the measurement of national development as well as progress towards the attainment of Millennium Development Goals. Government and its agencies must therefore reassess its strategies to ensure that at the last count the greater number of its people are not left without proper shelter.
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