Business

Housing challenges Nigeria’s new president will have to face

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2 years ago

NIGERIA has a nationwide housing shortage, and the telltale signs are worrisome.

Low-income Nigerians across the country struggle to pay for housing.

Housing quality is a concern in both cities and rural communities.

Climate change is already harming Nigeria’s homes and communities, and will get worse.

Well-functioning housing markets are very critical to Nigeria’s economic success. Excessively high cost of housing make it difficult for private employers to attract and retain good workers.

Communities and neighborhoods that can offer basic functional amenities – such as good infrastructure, schools and healthcare – at affordable prices will be most attractive to workers who can choose their location.

Access to stable, decent-quality housing in safe, healthy communities allows people to engage productively in school, work, and other social and economic activities.

While housing has traditionally been left up to Federal Government, four key challenges would benefit from state-level attention:

Monitoring regional housing supply.
Providing income support for poor households (Rent To Own / Social Housing)
Investments to upgrade housing quality.
Climate resilience efforts.

The Federal Housing Authority should support state governments through infrastructure development. How much housing gets built in what locations is not just a function of market forces; state governments regulate housing development through policies such as zoning and building codes.

Excessively strict zoning, such as large minimum lot sizes, prohibitions on apartments, and complex development processes can reduce the supply of new housing and increase housing costs.

Even in states such as Lagos where the government adds new housing to try and keep up with demand and gap, lower-income households still have difficulty paying for market rate housing. The incomes of many lower-paid workers have not kept pace with increases in rent and inflation.

While housing affordability generally receives more attention, a related concern is the prevalence of poor-quality housing.

In most of the country’s state capitals, older homes are especially common among large cities, most of which were built just after independence.

The physical, economic, and human costs of climate change are becoming increasingly tangible in Nigeria.

Intense storms and sea-level rise are causing wind and water damage to homes and businesses. Extreme heat is creating health and safety threats, especially for older adults, people experiencing homelessness, and those whose homes lack air conditioning.

Strategic housing policy choices (focused, direct and sustained) by Nigeria’s new President can strengthen the country’s economy, reduce financial stress on households, and improve climate resilience.

– Integrate housing, transportation, and land use to improve climate resilience.

– Enable better policies through better information.

– Invest in building maintenance and upgrades for older government housing estates throughout the country.

– Increase funding for affordable housing and invest in acquiring or developing subsidised apartments for social housing.