Business
‘Bridge National Housing Deficit Through Co-operative Scheme’
The Federal Government has been advised to encourage co-operative housing scheme as a means of reducing the national housing deficit.
Head of Civil Engineering, Federal University of Agriculture, Abeokuta Prof. Olubayo Olateju, gave the advice in an interview with newsmen on Saturday.
He said government’s support of the scheme would also provide low income-earners decent and affordable accommodation.
“Co-operative housing scheme is the process where individuals or families work together to directly construct their own homes in a co-operative fashion.
“Members purchase building materials in bulk and co-operate with other members of the co-operative in the construction phase.
“I will advise government to look into creating an enabling environment for housing co-operation.
“The government should also ensure that this housing cooperation thrive if it hopes to achieve any of the nation’s developmental goals,” Olateju said.
He lamented the fact that the mortgage system which is supposed to be geared towards helping the low income-earners in the country is virtually non-existent.
The professor said the poor design of the nation’s mortgage systems makes it near impossible for regular income earners to access.
“With the present mortgage system in the country, it is impossible for a low income earner to be able to afford a decent affordable housing,” he said.
The Professor of Engineering noted that the structure of wages completely excludes the low income-earners who earn between N200,000 and N400, 000 per annum from enjoying the benefits of existing mortgage plans,
“What this means is that such a worker, even after 15 years of service, can never be eligible for a mortgage loan.
“To become eligible for a mortgage, an employee must be in the higher income category of Grade Level (GL) 12 and above.
“But, even then, can such an income afford him a decent and affordable house?’’ he asked.
Olateju said system intervention in housing by mortgage or housing loan were usually replete with problems, such that the beneficiary most often regrets seeking intervention.
“The only system intervention that I believe will help low income-earners get decent and affordable accommodation in this country is through co-operative housing,” he said.
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