Expert Lists Impediment To Housing

A former president of Nigerian Institution of Surveyors, Dr. Sola Atilola on Thursday said that inadequate policies to address issues of affordability had been the bane of housing finance in Nigeria.

He told newsmen in Lagos that the problem was that government policies were not acknowledging the current challenges in the housing sector.

“Instead of promulgating policies that will address these challenges, successive government attempts have been on building completed houses that cannot be afforded by the targeted low income group,” he said.

Atilola said that policy and regulatory challenges, insufficient capitalisation, unavailability of a secondary market and lack of credit enhancement vehicles were some of the challenges that government should address to improve the housing sector.

“Even though housing co-operatives have been able to deliver houses to members where government and the organised private sector have failed, government should still intervene and complete the mortgage sector reforms,” he said.

Atiola said that even the National Housing Trust Fund Scheme, in spite of the money it had collected from workers so far, had been unsuccessful in rising to the challenges of providing housing finance to Nigerian workers.

“The scheme is burdened with loopholes that have rendered it ineffective in assuaging the housing needs of workers.

“A major challenge is that the maximum amount the fund can approve was calculated on the basis of low-income housing.

“But, unfortunately there is either insufficient stock available in that price range or the units are simply not affordable,” he said.

Atilola urged the Federal Government to mobilise relevant agencies and parastatals to make available incentives, such as land use reforms, subsidies, building materials, cost reduction programmes and tax exemption.

“This will ensure increased housing delivery in the appropriate price bracket,” he said.

Atilola also advised that the Federal Mortgage Bank of Nigeria should be restructured and positioned for better service delivery.

“A fully functional housing finance sector cannot be possible without a functional and sustainable mortgage system,” he said.