African countries have be asked to consider housing solutions that fit their peculiarities. DAYO AYEYEMI reports.
African countries have been urged to adopt a domestic strategy in developing sustainable and resilient housing solutions that will meet their needs.
Vice President of Nigeria, Kashim Shettima, gave the advice during the 18th edition of the African International Housing Show in Abuja Represented by the Minister of Housing and Urban Development, Arc Ahmed Dangiwa, the vice president affirmed housing as a fundamental right, expressing the Federal government’s commitment to collaborating with the private sector to bridge the housing gap in the country.
With limited financing, Shetima said it has become important for Africa as a continent to adopt a ground-up approach and a domestic strategy that would take into consideration the peculiarities of its housing needs.
He pointed out that despite the fact that housing is a basic need and right of every human being, access to it depended on the financial ability of individuals, the capacity and will of government to intervene in order to create the enabling environment for its provision.
He said “We all know that the current state of housing in our continent is far from where it ought to be. We have a dual challenge of inadequate housing supply to meet population growth and sub-standard housing which does not meet the conditions of habitability, safety and security, comfort, sanitation, accessibility, infrastructure, social amenities, and socio-cultural adequacy as set out by United Nations (UN) and World Health Organisation (WHO).
“This is a continent-wide problem. In Nigeria for example, recent surveys show that 75 percent (i.e. 31.6 million) of the 42 million housing units in Nigeria are sub-standard.
“This means that our housing delivery strategies must combine urban renewal and the building of new houses to address Africa’s housing challenges,” he said.
The minister recalled that since August 2023 he assumed office, the ministry had adopted a value-chain approach to fixing Nigeria’s problems.
“We developed and have commenced the implementation of reforms that will help us rewrite the housing and urban landscape.
“In January this year, we inaugurated four housing reform task teams focusing on producing blueprints that will guide us in improving land governance, strengthening federal housing agencies such as the Federal Housing Authority (FMBN) and the Federal Mortgage Bank of Nigeria (FMBN) and ensuring that they leverage their collective capacities to increase the stock of affordable units in our country.
“Another area of focus is encouraging the local manufacture of building materials. We aim to establish building materials manufacturing hubs in each of the six geo-political zones across the country so that we can lower the cost of construction materials and housing delivery,” the housing minister said.
According to him, government is actively seeking partnerships towards the delivery of these hubs, adding that it’s also opened to partnerships from technically and financially capable institutions.
He hinted participants at AIHS that all the housing sector reform task teams are currently in the process of finalising their reports, assuring that government is poised to examine and implement their recommendations to move the housing sector forward in the country.
Dangiwa explained that the implementation of the Renewed Hope Cities and Estates Programme of the current government has commenced, with the aim to deliver a total of 50,000 housing units across Nigeria under first phase.
“The cities are to have 1,000 housing units per site in one location in each of the six geo-political zones in the country and FCT, while the estates will have 250 housing units per site in the remaining 30 states.
“So far, we have done groundbreaking for a total of 6,612 homes in 13 locations across Nigeria.
“The Renewed Hope Cities target all income brackets with one-bedroom blocks of flats, two-bedroom blocks of flats and three-bedroom blocks of flats; two-, three- and four-bedroom terraces, four-bedroom duplexes, and five-bedroom duplexes,” the minister said.
According to Dangiwa, the estates are designed for low- and medium-income earners with one-, two-, and three-bedroom semi-detached bungalows, adding that organic designs were used where one bedroom can be expanded to two-bedrooms and three-bedrooms as the income of beneficiaries increases over time.
He disclosed that the funding for the projects was from a mix of sponsors comprising budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and Public-Private Partnerships with reputable developers.
“Sustainability is also a key part of our Renewed Hope Cities and Estates Programme. We have incorporated green design measures to ensure that the cities and estates are climate-smart and environmentally friendly,” he said.
While calling on investors to take advantage of the opportunities provided by the projects, Dangiwa said: “I see Nigeria›s housing gap not only as a social necessity but a business opportunity for investors and our partners to make profitable impact.
“That is why we are looking to PPPs and collaborations with housing development finance institutions, investors and partners.”
He said the government had adopted a demand driven approach for the housing delivery strategy to avoid the issues of abandoned or completed but unsold buildings.
The Festus Adebayo-led Africa International Housing Show features products presentation, exhibition of building technology, home interiors, modern construction equipment, chemical and paints products, mortgage services, housing projects, interactive forums with prominent stakeholders in the built industry towards achieving affordable housing from all part of the world.
The theme of this year forum «Financing the Housing We Need», Adebayo said it provided opportunities for chief executive officers of various real estate companies, financial insurance and mortgage institutions, built environment professionals, investors, political leaders, policymakers, legislators, contractors and manufacturers of building materials to brainstorm and network on the way forward for the Nigerian housing sector.
On how to finance the housing needed in Nigeria, considering the high cost of funding and volatile business environment, the Chairman, Makarios: The Luxury Place, Pastor Mathew Ashimolowo, who also chaired the opening ceremony, told participants that they need to be intentional, innovative and pragmatic about their financing strategies, which he added have worked effectively for his own organization.
He explained the fundamentals role of finance in housing development, adding that finance is important at both ends of the housing value chains.
He suggested land banking as a veritable source of fund for real estate or housing development.
Ashimolowo narrated how he invested in land banking in some locations in Lagos and Ogun States, waited for a number of years for the value to increase and later sold with profit, and how the proceeds of the sale later constituted a strong source of financing the current housing projects.
He blamed absence of long-term funding, high interest rate of between 30 percent and 40 percent with short-term tenure, volatility of the economy, forex issue, inconsistent monetary policies, complexity of documentation, and high cost of title perfection for housing shortage and dearth of affordable housing finance in the country.
Speaker of the House of Representatives, Abbas Tajudeen, represented by Chairman Reps Committee on Housing, Abdulmumin Jubrin, identified implementation gaps, regulatory oversight deficiencies, and lack of incentives as barriers needing urgent attention to narrow the housing deficit.
Senate President Godswill Akpabio, represented by Senator Victor Umeh, advocated for collaborative efforts to ensure housing as a fundamental right across the continent. He reiterated the Senate›s dedication to inclusive policies that address current housing needs without burdening future generations.
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