By Emeka Ezekiel, Abuja

Thursday, 18 Nov 2010

Nigeria requires about N45tn to solve its housing deficit, currently estimated at 16 million units.

This is contained in a report on, “Challenges Facing Housing Delivery in Nigeria,” prepared by the Federal Mortgage Bank of Nigeria, a copy of which was obtained by our correspondent in Abuja.

The Acting Managing Director/Chief Executive Officer, FMBN, Mr. Michael Nwogbo, who confirmed the development, however, stressed that the current difficulty in land acquisition and mortgage transactions created by the Land Use Act, was one of the major problems militating against the provision of affordable housing for the teeming population.

He said, “Currently, there exists a huge housing finance deficit in Nigeria, which requires a minimum of N45tn. Also, there are difficulties in land and mortgage transactions posed by the Land Use Act and long bureaucratic process for land administration.

“This has been worsened by the expensive cost and tax requirements; inappropriate prudential guidelines for mortgage lending; under- capitalisation of primary mortgage institutions and absence of credit enhancement vehicles.”

In order to provide decent and affordable mass houses to meet the nation’s housing requirement, the Vision 2020 economic blueprint had recommended the construction of 600,000 housing units by the Federal Ministry of Housing.

The Federal Housing Authority was also given a target of 240,000 units, while Public-Private Partnership arrangement was expected to yield 500 prototype housing units within the next four years.

But the Minister of Lands, Housing and Urban Development, Mr. Nduese Essien, said that the ministry would collaborate with the private sector to bridge the gap in the housing sector.

He stressed that the new initiative, which would be financed through the PPP arrangement, would help to reduce the country’s 16 million housing deficit.

According to Essien, “We are collaborating with a private developer, Orient Properties Development Company Limited, to build three million housing units for civil servants across the country within the next four years.

“This is part of our renewed efforts towards meeting the nation’s housing stock estimated at 16 million units. The first phase of the project will commence with the delivery 500,000 units.”

He added, “The ministry was considering various options towards addressing the staggering housing deficit in the country. Our team of experts were challenged to work-out a quick-win measure, medium and long-term intervention mechanisms towards providing solutions to the housing crisis.

“As we considered various options with the mandate of reducing the country’s huge deficit in housing stock, we had sought new strategies to enhance housing delivery. One of the strategies is the partnership with the organised private sector.”

He said the ministry was confident that the project would go a long way in reducing the huge housing deficit currently starring the country in the face, adding that it would give all the necessary assistance and support to see the success of the project.

 

Source: Punch