Parties Interested in Sustainable Housing Development Pursue Innovative Framework
Stakeholders within the construction and housing industry have united in their call for a fresh approach to housing development in Nigeria, one that prioritizes the creation of affordable homes for the nation’s citizens. They argue that the government must adopt innovative strategies to secure funding and attract private sector investments, as the current budgetary allocations are woefully insufficient to address the housing deficit.
During the Real Estate Developers Association of Nigeria (REDAN) Capacity Building Forum held in Abuja, Professor Timothy Nubi, a prominent speaker, emphasized the pivotal role of housing construction in low-income communities within developing economies. He underscored how it can stimulate the growth of small businesses and enhance personal wealth. Nubi stressed the urgent necessity of providing housing options for Nigerians and leveraging housing as a potent incentive for savings and investment. He asserted that all levels of government should reevaluate their policies and focus on infrastructure development.
It is disheartening that approximately 80% of legal cases in the Southern region of the country revolve around land acquisition issues, primarily due to the Land Use Act. Some state governments employ this Act as a means to obstruct the process of obtaining land suitable for construction. Consequently, Professor Nubi appealed to relevant stakeholders to collaborate with state and federal authorities to resolve the challenges associated with land administration. He urged a thorough review of the Act and the transformation of slums into modern, smart cities. It was his belief that stakeholders should join forces with governments to meet the pressing need for additional housing and reduce the current housing deficit.
The Minister of State for Housing and Urban Development, Abdullahi Gwarzo, identified the most significant obstacle to affordable housing as the high cost of financing. He pointed out that interest rates remain in the double digits, and obtaining international funding remains a formidable challenge. He highlighted that presently, the most accessible sources of single-digit finance for housing construction are the Federal Mortgage Bank of Nigeria, through the National Housing Fund Scheme, and the housing initiatives of Family Homes Funds Limited.
Adding to the discussion, REDAN President Aliyu Wamakko stressed that the forum’s purpose is to bolster the knowledge and expertise of its members and industry professionals. This, he stated, would enable them to adeptly navigate the multifaceted challenges inherent in real estate ventures. Wamakko emphasized their commitment to securing long-term, single-digit debt financing for professionals, emphasizing that without such support, homeownership would remain a distant dream, given the substantial capital requirements of real estate development.
