Consultant Seeks Effective Policies On Housing Finance

An environmental resources and spatial planning consultant, Dr Oluwole Alade-Ojomo, says inadequacy in past government policies to address affordability issues was the bane of the housing finance sector.
Alade-Ojomo told journalists recently y in Lagos that the major problem with government policy was that it did not acknowledge current challenges facing the sector.
“Instead of promulgating policies that will address these challenges, successive government attempts have been about building houses that are unaffordable to the targeted low income groups,” he said.
He said policy and regulatory challenges, insufficient capital base, unavailability of secondary market and a lack of credit enhancement vehicles, were some of the challenges that government should address to improve the sector.
“Even though housing co-operatives have been able to deliver housing to members, where government and the organised private sector have failed, government should still intervene and complete the mortgage sector reforms,” he said.
The consultant said even the National Housing Trust Fund scheme (NHTF), in spite of the money it collected from workers so far, had not been successful in rising to the challenge of providing housing finance to Nigerian workers.
“The scheme is burdened by 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 is 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.
Alade-Ojomo urge the Federal Government to mobilise relevant agencies and parastatal agencies to make available incentives, such as land use reforms, subsidies, building materials, cost reduction programmes, and tax exemption status.
“This will ensure increased housing delivery in the appropriate price bracket,” he said.
Alade-Ojomo, then, advised the Federal Mortgage Bank of Nigeria (FMBN) to restructure and re-position for better service delivery.
“A full functional housing finance sector cannot be possible without a functional and sustainable mortgage system.’’