Sir Sola Enitan, Founder and Chief Executive, Cromwell PSI Ltd, in this interview with Dayo Ayeyemi, said that achieving 50,000 new houses annually in the current business climate challenging but feasible with a strategic approach. Excerpts:
Do you think 50,000 new houses per year by the Federal Government is possible?
As a smart and systematic urban and housing development expert, I would like to provide a comprehensive response to the issues raised regarding affordable housing
Achieving 50,000 new houses annually in the current business climate is challenging but feasible with a strategic approach. Key considerations include Public-Private Partnerships (PPPs): Government should collaborate with private developers to share the burden of financing and implementation.
Also, Innovative Financing Models: The government would need to explore low-interest funding sources, mortgage incentives and crowd funding to mitigate the impact of high-interest rates.
Prefabrication and technology: the authority must embrace modern construction methods such as prefabrication and advanced technology, to enhance efficiency and reduce building materials costs.
What are the strategies that will make this happen, considering past failed efforts?
The Federal Government and all stakeholders should learn from past failures and implement the following strategies: Robust regulatory framework: It must strengthen regulations to streamline the approval process, reduce bureaucracy and instill investor confidence.
There must be data-driven decision making by utilising data analytics to identify optimal locations for housing projects, ensuring alignment with demand and economic viability.
There must be community engagement. Government should involve local communities in the planning process, addressing their unique needs and ensuring project acceptance.
What are your suggestions or advice for this new committee?
The new committee can enhance success by holistic planning. It should develop a comprehensive urban development plan that integrates housing, infrastructure and amenities.
Also, there must be in place risk mitigation strategies. The committee must anticipate challenges and implement risk mitigation strategies, such as currency risk hedging and long-term material procurement agreements.
It must strengthen the capacity of relevant agencies and professionals involved in project delivery.
What is your advice to the Federal Government?
To the Federal Government, I recommend policy consistency. Government must maintain stable policies to build investor confidence and attract long-term investments in the housing sector.
The central authority should prioritise infrastructure development to support housing projects and create sustainable communities.
In addition to the above, incorporating the following measures will further bolster the success of the housing development efforts: Land Sovereign Guarantee: Advocate for a sovereign guarantee on land titles to instill confidence in investors and mitigate the risk associated with uncertain land tenure.
Land Subsidies: Introduce targeted land subsidies to reduce the overall cost of acquiring land for housing projects, particularly in strategic locations.
Stamp Duty Waiver: Implement a temporary stamp duty waiver on housing transactions to encourage property sales and stimulate the real estate market.
Restrictive Covenants on Speculative Transfer: Introduce restrictive covenants on land titles to deter speculative transfer and ensure that land allocated for housing development is utilised for its intended purpose.
Forfeiture Covenants: Enforce forfeiture covenants in cases where land allocated for housing development is not utilised within a specified time frame, promoting efficient use of allocated resources.
Ease of Kin Ownership: Simplify and streamline the process of transferring ownership within families (kin ownership) to facilitate smoother intergenerational transitions and reduce bureaucratic hurdles.
What are the challenges militating provision of low and middle income housing in Nigeria?
The challenges include high construction costs,land acquisition and titling, access to finance.
Government should address the high cost of building materials through strategic partnerships with manufacturers, subsidies, or importation incentives.
It must also simplify land acquisition processes and improve the efficiency of titling systems to reduce delays in project commencement.
The authority should facilitate easier access to affordable finance for both developers and potential homeowners.
By incorporating these additional strategies, the Housing Reforms Task Teams can create an enabling environment for sustainable and inclusive housing development, addressing both economic and social dimensions.
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