Analyzing challenges, opportunities of affordable housing in Nigeria— ESV. Pius Achilike

1. An Estate Surveyor and Valuer ESV. Pius Achilike has said that there is a need to
   analyzing the challenges, opportunities offered by affordable housing in Nigeria

He maintained that affordable Housing has become one of Nigeria’s Most Pressing Socio-Economic challenges. With over 220 Million Population, the demand for good and affordable shelter far out weight supply. Nigeria has over 20 Million housing deficit making it one of the highest in Africa.

“Despite Government and Private sector efforts, many Nigerians especially low and middle income earners struggle to access housing that meets basic standards of quality, affordable and safety”.
Affordable Housing Crises can be attributed to the followings:
He said high rate of urbanization: Urban centers in Nigeria Like Abuja, Lagos, Kano and Port Harcourt have witness a high level expansion due to Rural-Urban migration driven by search of better opportunities that has placed much pressure on the limited housing stock. As cities grows, informal settlements proliferate, often lacking proper infrastructural and basic services.
“Limited Access to Housing Finance: Mortgage finance in Nigeria is very low, coupled with high interest rate, short repayment period and strict requirement from some banks that make mortgage loans inaccessible to most citizens. Without affordable finance options, low and middle income families struggles to purchase homes.High Construction Costs: The cost of building materials/construction in Nigeria is so high. Cement, Steel, Roofing Sheets and Finishing Materials are regularly affected by Inflation, import dependency, Unstable Exchange Rates, And Transportation Costs, Rising Prices make it difficult for developers to build low-cost units and still remain profitable.
“Land Ownership and Bureaucracy: The land use Act of 1978 vests land ownership in the state Governor requiring a complex process of obtaining certificate of occupancy and other approvals. Long time and costly documentation process discourage developers and delay projects over the years.
He said that the Nigeria Government has made efforts and policies in tackling this by introducing the followings:
National Housing policy: the Federal Government introduced various policies aimed at increasing affordable housing supply, including-public private partnership (PPPs)
Social Housing programs Under the National Social Housing Scheme.
Incentive for low-cost housing Developers.
The Federal Mortgage Bank of Nigeria (FMBN). FMBN Manages the National Housing Fund (NHF), designed to offer low-interest mortgage. The goal is to help Nigeria workers particularly in the formal sector access financially.

However, uptake has been limited due to bottlenecks and eligibility challenges.
State level Housing Initiative: Most states, such as Lagos, Kaduna and Kano have launched housing projects aimed at increasing supply. Nevertheless, high construction costs option push prices beyond the reach of the targeted demographic. Some of the opportunities for improving Affordable Housing includes:
Embracing Alternative Building Materials , Expanding Mortgage and Rent-to-own scheme, Strengthening Public Private partnership others are Urban planning and Infrastructure Development and Technology and Construction Innovation.

He emphasized that affordable Housing in Nigeria remains complex challenge fueled by rapid urbanization, high costs of building materials, limited access to Finance and bureaucratic obstacles.
Nevertheless, he stated that there is light in the end tunnel for affordable Housing in Nigeria
. By Adopting Innovative Building Technologies, Expanding Access to Financing, Reforming Land Administration, Ensuring Rule of Law and Strengthening Public-Private Partnership, with this Nigeria can make a significant strides in choosing its housing deficit.