How to address housing affordability in Nigeria — Expert

A REAL estate practitioner and Chairman & CEO, NuelOsilama Global Investment Limited, Osilama Emmanuel Osilama, has reeled out a number of solutions to the challenge of housing affordability among Nigerians.

To solve the challenge of housing unaffordability, he said it would require the promotion of local building materials in order to reduce high cost of housing production in Nigerian cities.

According to him, promotion of local production of building materials would require incentivizing local manufacturers through tax breaks, subsidies, and access to low-interest loans.

He also urged the need for government and institutions to invest in research and development to improve the quality and affordability of locally sourced materials.

  “There is need to support local industries that utilize local resources; stabilize foreign exchange by implementing sound economic policies to stabilize the Naira and reduce reliance on imported materials,” he said.

Osilama also canvassed the diversification of economy to reduce dependence on volatile sectors while investing in infrastructure to improve transportation and logistics.

He urged the government to streamline customs and import processes to reduce delays and costs, while encouraging bulk purchasing and cooperatives for smaller building firms.

Osilama, who is an estate surveyor and valuer, asked government to streamline land acquisition by simplifying land registration and titling processes; and to establish transparent and efficient land administration systems.

  Besides, he wanted the government to implement land reforms to reduce speculation and land grabbing; review and amend the Land Use Act to make land acquisition more efficient.

Other solutions suggested are that government should increase land availability; release government-owned land for affordable housing development; promote public-private partnerships to develop large-scale housing projects; and

implement effective urban planning and zoning regulations.

He listed underdeveloped mortgage system as bane of housing affordability in the country, calling for a major increase in mortgage funding, urging the government to establish a national mortgage refinancing corporation to provide liquidity to mortgage lenders.

“Encourage private sector participation in the mortgage market; explore innovative financing models, such as cooperative housing and micro-mortgages; reduce interest rates by

 implementing policies to lower interest rates and make mortgages more affordable; offer subsidized mortgage rates for low-income earners; relax lending criteria; and

develop flexible mortgage products tailored to the needs of different income groups,” he said.

He also canvassed the implementation of credit guarantee schemes to reduce lender risk, in addition to the creation of a more efficient foreclosure process that balances the needs of the lender and the borrower.

On infrastructure deficits, he urged the government to invest in infrastructure development by

Prioritizing infrastructure development in areas designated for affordable housing.

 He called for major improvements in roads, electricity, water supply, and sanitation, adding that the authority must encourage public-private partnerships for infrastructure development.

 In orders to reduce infrastructure costs, he also called for the implementation of efficient infrastructure planning and management by promoting the use of cost-effective infrastructure technologies.

  He called on the government to develop satellite cities to curtail rapid urbanization and population growth.

 His words: “Invest in the development of satellite cities to reduce pressure on major urban centres.

 “Create economic opportunities in rural areas to slow down urbanization; implement effective urban planning; develop comprehensive urban plans that address housing needs; implement zoning regulations to control urban sprawl; and invest in mass transit systems,” the housing expert said.

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