Expert Wants 25% Pension Funds Spent On Housing

As part of strategy to bridge housing deficit and address challenges of affordable homes affecting majority of workers and retirees, an expert in the building industry, Dr. Ifenna Enekwezu, has urged the federal government to set aside 25 per cent of the pension fund for development of low cost housing schemes.

He said such percentage of the pension funds could be floated as bonds for the development of such housing project, pointing out that access to funds is one of the major issues confronting the housing sector, where many developers find it difficult to access fund.

Dr. Enekwezu, a specialist in property management in a chat with The Tide, observed that the existing funding arrangement for the provision of housing in Nigeria is inadequate to meet the yearning of the masses.

He also observed that the housing deficit had continued to be on the increase, while Public Private Partnership (PPP), which is a veritable tool of qualitative, efficient and effective mass housing delivery has not been fully explored.

The property expert therefore enjoined government at all levels and property agencies to embrace proactive steps and take advantage of Public Private Partnership (PPP) to increase housing stock in Nigeria.

While urging the federal government to set aside 25 per cent of the pension fund through bond for both housing and recapitalisation of Federal Mortgage Bank of Nigeria (FMBN) and its housing finance windows to provide adequate funds, Dr. Ifenna also advocated for the review of Estate Development Loan (EDL).

He is of the view that this could be achieved through the establishment of a joint monitoring group to ensure effective utilisation of disbursed fund to comply with approved standards.

Corlins Walter