Bridging housing deficit gap: The Lagos example

AS it marks its sixth year in office, the Babajide Sanwo-Olu administration has completed and commissioned 10000 home units across the state. Despite its relative success in providing affordable homes to the people, the government is not resting on its laurels. More homes are billed for construction across the State. Part of this includes an ongoing conversation with a private finance institution to provide 800 units at Odola in the Ikorodu division. All the initiatives are targeted at first-time owners and low-income earners, with mortgages ranging from 10 years to 15 years. Similarly, all government-owned old estates are being re-evaluated with a plan to restore their infrastructure and maximise the available lands for greater home yield. The government is also ready to enhance fairness and transparency in the allocation of housing units through the use of a ballot. The first balloting exercise will be conducted for Lagos State Public Affordable Housing, Idale in Badagry Division, and LagosHoms at Odo-Onosa/Ayandelu in Epe Division on the 4th of June 2024. The process will be monitored by independent observers. Old estates are also being re-evaluated with a plan to restore their infrastructure and maximize the available lands for greater home yield.

The pressing global affordable housing crisis, exacerbated by rapid urbanisation, is a trend particularly evident in Lagos, one of the world’s most populous cities, with over 23 million residents. Nigeria faces a massive housing deficit estimated at over 22 million units, a situation compounded by rural-urban migration and infrastructure limitations. Despite these challenges, the Sanwo-Olu administration has adopted a multi-pronged approach to boost housing delivery. This includes direct budgetary allocations for construction projects targeting low-income earners and fostering Public-Private Partnerships (PPPs) by offering incentives and streamlining approval processes for real estate developers. The impact of the economic shock waves across the world is affecting the low and medium-income earners and rendering many homeless as a result of the huge surge in construction costs, materials, as well as a hike in housing rentals. Key achievements of the government in the housing sector include the commissioning of 21 housing estates across Lagos State’s five administrative divisions since 2019. It also includes ongoing construction of 4,052 additional units in five housing schemes, expected to be completed by the first quarter of 2026, bringing the total delivery to 14,022 units.

Also, the Lagos State Development and Property Corporation (LSDPC) is completing 12 housing projects (710 homes) with 25 ongoing projects expected to add another 2,415 units.

Similarly, the Lagos State Mortgage Board (LMB) assists over 20,000 residents with mortgage and Rent-To-Own policies, resulting in 312 individuals achieving full homeownership. A new policy allows Rent-To-Own participants with six years of payments to take full ownership under specific conditions. In the same vein, the Lagos State Real Estate Regulatory Authority (LASRERA) registered 925 practitioners, successfully mediating 1,243 of 1,580 disputes, and recovering over N295 million and 20 properties. In the past six years, the government has also created approximately 13,749 direct and indirect jobs. Over 500 artisans were also retrained to enhance construction quality. Through the implementation of estate sustainability and facility management strategies, the government also generated an additional 900 direct and indirect jobs. It is also important to stress that a rebate program, enabling 770 civil servants to access homeownership, has led to the allocation of  120 home units to teachers and health personnel in remote areas. Also, in a bid to reduce incidences of building collapse, the cost of property development, and enhance quality in housing development, Governor Sanwo-Olu has unveiled plans to build the competence of local artisans and craftsmen in the State. The purpose of the plan, the governor said, is to improve the skills of local artisans and bring them on par with their contemporaries in the region and the world at large. Since everyone can obviously not benefit from the State’s housing schemes, the government is working on the commencement of a monthly rent payment scheme which will commence soon in the State.

With the housing deficit in the state, the government is still resolute on creating more innovative methods for supplying decent and affordable homes to the people of the State. Given the State’s limited land mass and the increased pressure on available lands for housing and other developmental ventures, the time is ripe for thinking outside the box. In the course of time, the government is keen on evolving an inclusive strategy through which owners of old homesteads partner with the government in terms of releasing old properties to the government for vertical developments of blocks of homes. The land on which the homes are will be viewed as equity for the family concerned, while the government will partner in building high-rise accommodation to serve as homes for more people. This is a strategy that will also result in urban renewal and regeneration of old homesteads. The government is also actively driving cluster arrangements via Cooperatives to satisfy the yearnings of as many people as possible in this bracket. This group is accommodated through the ‘Rent to Own’ Scheme, which is our unique way of increasing affordability.

This scheme enables an allottee to pay only 5 percent as an initial payment, with the rest spread over 10 years with a minimal interest of 6 percent. Effective mortgage funding at a reasonable interest rate to reduce the high cost of funding for housing is also part of our policy considerations. In addition, the government is actively encouraging research into the use of local building materials to reduce the cost of building. In this way, the issue of affordability is being addressed while also energizing the economy through reduced import costs. On the whole, governmental policies in all sectors are being tailored towards a more integrated and fully incorporated synergy for the total benefit of the people. With this, the location of housing schemes, either in rural or urban parts of the State, will soon be inconsequential in choosing homes, especially with multimodal means of transportation embarked upon by the government. Looking ahead, the government plans to release over 1,600 more homes as ongoing projects reach completion.

•Ogunbiyi is Director, Features, Ministry of Information & Strategy.

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