APPRAISAL OF MODERN
STRATEGIES FOR HOUSING DELIVERY IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Housing
shortage is one of the most serious developmental challenges presently
confronting Nigeria. Stakeholders and industry operatives in building
technology are unanimous in their opinion that the process of housing delivery
in Nigeria needs a change of strategy. In this study, the researcher is
examining modern ways that could be explored to meet the nation’s housing
deficit which stands around 17million units (Akeju, 2012).
Although
Nigeria with a population of over 160 million people has been identified as the
largest market in Africa for everything, including real estate, growing demand
for decent shelter has continued to meet leaner supply of housing units. Over
the years, successive governments in the country had tinkered with policies in
a bid to achieve its mass housing objective but due to lack of reasonable
commitment to it, achieving the goal has remained elusive (FRN, 2007).
Experts
who gave analytical insight into the problem of housing delivery in Nigeria
called for a declaration of a state of emergency in the housing sector, saying
innovative thinking and modern strategies could bring about better outcomes
that will enhance housing delivery process in the country. It is a known fact
that financing of housing projects remained one of the biggest problems in the
sector that is militating against housing delivery. Akeju (2012) is of the
opinion that the major issue in housing delivery is funding, getting
appropriate funding. There is money flowing everywhere but the right type of
money needed for long term project like housing is not available. Something
that can really work for affordable housing can be akin to what the Federal
Mortgage Bank offers which cannot go round.
Modern strategy in housing delivery in Nigeria will
reiterates the government’s priority to tackle overcrowding and the ambitious
target to reduce severe overcrowding in rented housing apartments (Bush, 2004).
Alongside making funding available for larger homes, with at least higher
number of bedrooms, and a long-term commitment to deliver the family sized
affordable homes should be identified in a strategic plan for housing delivery
(Easton, 2006).
There are many strategies needed to facilitate massive
housing delivery in Nigeria but modern and technologically-inspired large scale
housing schemes – schemes and sites with thousands of housing
units could play a significant role in the delivery of the
large number of houses the Nigerians needs. The experience of the last 20 years
suggests that the level of demand for new homes over the next decade will not
be met by piecemeal incremental developments.
In
Nigeria today, there is a shortage of housing for low-income earners and
constantly growing housing demands (due to increase in population) that are not
met. Unfortunately, banks are reluctant to provide mortgage facilities to
low-income earners. In order to solve the housing/mortgage challenges faced by
the Nigeria populace, the Nigerian Mortgage Refinance Company (NMRC) was
established to promote home ownership and increase the availability and
affordability of mortgage loans to Nigerians. In spite of the incorporation of
NMRC in June 24, 2013, not much has changed. The apathy of banks towards
mortgage transactions still lingers, understandably, because of the risk of
default. To buttress this, 66,402 Nigerians applied for mortgages during the
recent Nigerian Housing Finance Programme. Only 10,000 Nigerians were selected.
However, the interest rates by primary mortgage institutions that participated
in the programme were alarming (14.5% -19%). It is suggested that a cue be
taken from other countries where the cost of mortgage for first time home buyers
are low, with small down payments and easy terms especially, a single digit
interest rate.
1.2 STATEMENT OF THE PROBLEM
The
problem of housing delivery is of great concern in many countries. This problem
is especially prominent in Nigeria. The challenge as been magnified as a result
of a myriad of issues, not least, a high population growth rate, shortage of
necessary skills and disintegrated supply chain. There is need for Nigerian
government and stakeholders in the building industry to rise up to housing
needs of Nigerians in quality and quantity. Some researchers has advocated
other modern methods of construction like dry construction has strategy to mass
housing delivery. However, the researcher is examining how modern strategies
can be used to ensure that the housing need of Nigerians are met.
1.3 OBJECTIVES OF THE STUDY
The
following are the objectives of this study:
1. To
examine the modern strategies that can be used for effective housing delivery.
2. To
determine the effect of modern strategies on housing delivery in Nigeria.
3. To
analyze the factors hindering the use of modern strategies in housing delivery
in Nigeria.
1.4 RESEARCH QUESTIONS
1. What
are the modern strategies that can be used for effective housing delivery?
2. What
is the effect of modern strategies on housing delivery in Nigeria?
3. What
are the factors hindering the use of modern strategies in housing delivery in
Nigeria?
1.6 SIGNIFICANCE OF THE STUDY
The
following are the significance of this study:
1. Outcome
of this study will educate stakeholders in the building industry, government
and policy makers on the modern strategies that can be used to solve the
problems of housing deficit in Nigeria.
2. This
research will also serve as a resource base to other scholars and researchers
interested in carrying out further research in this field subsequently, if
applied will go to an extent to provide new explanation to the topic
1.7 SCOPE/LIMITATIONS OF THE STUDY
This
study on appraisal of modern strategies for housing delivery in Nigeria will
cover all the effort and approaches of past and present government of Nigeria
at tackling the problem of housing deficit in Nigeria. It will also cover the
new approaches and strategies that can be used for mass housing development.
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
Time constraint– The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.
REFERENCES
Akeju,
A. A.(2012). Challenges to providing affordable housing in Nigeria. Proceedings
of 2nd Emerging Urban Africa International Conference on Housing Finance in
Nigeria, Abuja, Nigeria. 17-19 October, 2007.
Bush,
A. (2004) Understanding Stabilized Earth Construction. Virginia: VITA
Publication Technical Paper No 2. Retrieved on July 7, 2007 from http://sleekfreak.ath.cx:81/3wde/VITAHTM/
SUBLEV/ EN1/STABERTH.HTM
Easton,
D. R. (2006). The Rammed Earth House. White River Junction, VT: Chelsea Green
Publishing Company
FRN
(2007). Federal Republic of Nigeria Official Gazzette Vol. 94, No 24.
UNDP
Human Development Report. Oxford University Press, Oxford 1999.