Governments at all levels have been urged to encourage the private investors to deliver affordable housing to both the low and middle income Nigerians.
According to the experts in the sector, comprising real estate developers and industry’s stakeholders, private sector participation in housing delivery can help to address the huge housing deficit in the country, create jobs for the youths and help reduce crimes in the society.
Corroborating this during an interview with Nigerian Tribune, the Lagos-based estate surveyor and valuer, Abdullah Ibraheem Olawale, urged government to work on its ease of doing business to boost participation of the private sector in housing provision
“I have been to a lot of countries, what I see is private sector participation. Why do we build everything we do on the neck of government I still don’t understand.
“What we should be doing is to encourage private investors who have the capacity and names in the industry to have access to loan that can put them in a position to develop bare land into real estate with specifications from the government.
“If you travel to some of the advanced countries, that is what you see mainly. The government will provide the land; provide water, electricity and other infrastructure within the region. A developer will take up a particular land, maybe 10 hectares, 20 hectares and build prototypes based on comprehensive approvals
“Developer won’t stop there; he will go ahead building complimentary services within that region. If we have about 20 hectares in this zone, the next thing is to have a park, outside the place is to have light industries so that people can work, recreate and live within the same environment. They don’t have to travel far from their homes after work or when they want to recreate,” he said.
Olawale said another set of developers could move to another area to replicate the model.
For those that want bare land, he said a sizable portion of land could be given to them to put on their own houses.
By following the approach, the affordable housing advocate said the country would never experience shortfall in all categories of houses “because they encourage the private investors to involve in housing provision.
According to him, the approach would save the government from a lot of headaches.
Talking about access to mortgage to enhance home ownership among Nigeria, Olawale adduced lack of trust among Nigerians as a challenge.
Besides, he pointed out that most financial institutions in the country still give out short-term loan when with the right calculation, they could actually give out long-term loan just the way it is being done abroad.
“There is issue of lack of trust among Nigerians. In developed countries, they make use of insurance proceeds to develop their country. How many of us has that confidence in a system that if I put money away for insurance over a period of 10 years, for example, at the 10th year I should be able to draw out.
“Only few institutions can actually say we will pay at the end of that period. Otherwise they will bring out the clauses which will prevent you from being able to access money you have kept away over a period of time.
“This is where the element of trust comes in. It also affects mortgage because we don’t have a stable economy,” he said.
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