THE issue of affordable housing remains a significant challenge in Nigeria, particularly in rapidly urbanizing states like Oyo. With increasing population growth and rural-urban migration, the demand for decent, low-cost housing in Oyo State, especially the city center of Ibadan, has escalated. Despite government efforts and policies aimed at addressing housing shortages, a major obstacle remains: adequate funding. Assessing the availability, sources, and utilization of funds for the development of low-cost housing is crucial to understanding the gaps and proposing effective solutions. Oyo State has witnessed various housing initiatives over the years, including partnerships with private developers and federal government schemes like the National Housing Fund (NHF) for the provision of affordable houses and site and services schemes. However, the success of these initiatives largely depends on the consistent flow and management of financial resources. Funding for low-cost housing projects typically comes from three primary sources: government budget allocations, private sector investment, and development finance institutions such as the World Bank or African Development Bank.
Despite these sources, several factors have hindered the effective disbursement and use of funds. Budgetary constraints at the state level often result in limited allocation to the housing sector. Additionally, bureaucratic bottlenecks, lack of transparency, and inadequate project monitoring contribute to the mismanagement or underutilization of available resources. Moreover, the involvement of the private sector in low-cost housing development in Oyo State has been minimal due to perceived low returns on investment. Developers often find it challenging to secure land, navigate regulatory requirements, and access affordable financing. This creates a funding gap that makes it difficult to implement large-scale, low-cost housing projects that can benefit the lower-income population. However, recent efforts by the Oyo State government to engage in Public-Private Partnerships (PPPs) and attract donor funding represent a promising direction. Programs that combine funding with technical support and capacity building for local construction firms can help bridge the housing deficit. Additionally, implementing policies that reduce the cost of land acquisition and streamline approval processes can encourage more investments into affordable housing.
Read Also: Okowa never regretted running with Atiku in 2023 — Aide
The development of low-cost houses in Oyo State is essential for social stability and economic growth. However, the success of such development hinges on effective assessment and utilization of funds. While there are funding mechanisms in place, challenges related to access, disbursement, and accountability must be addressed. To move forward, the government must prioritize housing in its budget, foster transparency, and create an enabling environment for private sector participation. With sustained efforts, it is possible to develop affordable housing solutions that meet the needs of the growing population in Oyo State.
•Omoyeni, an estate surveyor and valuer, is of Ibadan South-West Local Government
and then