Lack of collaboration biggest problem confronting housing sector —Experts

PRACTITIONERS have identified lack of collaboration as the biggest problem confronting Nigeria’s housing sector.

They pointed out that despite efforts by individual developers and firms, absence of affordable housing and mortgage still persists in the sector.

They listed high cost of land, high building materials’ cost, high cost of obtaining planning approval and title, low purchasing power of people and high interest rates, lack of government’s cooperation as factors slowing down  the industry.

Looking for a common ground for a major turnaround, the experts said that would require collaboration among all stakeholders

They are of the opinions that mortgages should be created for all the houses being delivered by the private developers and agencies of government.

They argued about the readiness of agency to support Shelter Afrique, which has disclosed plans to invest in Nigeria’s housing sector.

According to the founder and chief executive, Cromwell Professional, Mr. Sola Enitan, the first point is to define the grounds for collaboration.

He said “I think we first need to define the grounds for collaboration. What type of housing is proposed for development and who are the houses meant for and where will the houses be built?

“Is the Federal Government a good home provider or is it better to work with the states of the federation whose governors hold land in trust?”

Enitan believes that other questions should be answered before putting in place a strategic plan for implementation.

Executive Director, Housing Development Advocacy of Nigeria, Mr. Festus Adebayo, suggested a critical look into the relationship between the Central Bank of Nigeria, Mortgage Bankers Association of Nigeria and the Federal Mortgage Bank of Nigeria (FMBN).

According to him, time has come to find out about the mortgage banks and their performance.

Another expert, Onabekun Adeku, stated that collaboration would only be achieved through identification of risk in the built environment, consideration for environmental targets and impacts, development of a strategy, establishment a methodology for consistently gathering data, validation and verification of data and sustainable decision making.

According to him, developing a strategy for affordable housing must be with political will and value preposition involving all stakeholders.

Immediate past president of the Real Estate Developers Association of Nigeria, Mr. Ugochukwu Chime, said there is the need for inclusiveness and collaboration in devising a workable solution for the housing  industry, which has multiple stakeholders and players in its value chain and transaction dynamics.

“I have supported and advocated for a healthy FMBN for the growth and thriving of the sector. Some vocal opposition did not see the need, because they felt that the challenges FMBN has, which ought to lead to it being restructured and recapitalized, should serve as a pretext for emasculation and killing of FMBN.” he said.

Having listed some of the challenges in both demand and supply sides of housing, he explained that the way forward is to confront government with the consequences of the path not taken, and how to reorient stakeholders cohesively and coherently.

He said “A major issue is the non-domestication of the laudable initiative of the Nigerian Mortgage Refinance Company (NMRC) that resulted in the Modern Mortgage Foreclosure Law (MMFL).

“That instrument establishes and aligns the financial policy (under the exclusive jurisdiction of FGN), and the land administration policy(which is under the jurisdiction and control of the 37 land administering entities in Nigeria).

“When appropriate incentives and sanctions from CBN and Development Finance institutions like FMBN, FHF etc are applied, we shall have a reduction in TT and TC in land administration especially building permit approvals and title perfection process.”

“So, I will be expecting us to see how we can refocus on institutional align and collaboration. This includes bringing financiers onboard to the National Council on Housing,” he said.

On what must be done, Chime suggested the need for integration of component parts that make for the housing ecosystem.

Looking at the first step, he said that people who are willing to make sacrifices for the sector and have requisite knowledge or practical experience should be selected to form a think tank.

He said:”Select a group of young people who are eager and interested in serving and improving their minds, to work as the secretariat. They will be paid for the two weeks that will be needed to ensure full commitment.

“Their work is to collate from their knowledge and experience, a road map for the task of defining the way forward for the housing sector.”

“They will be charged with amongst others: Identification of the full housing value chain and who are the key stakeholders/players that their buy in is crucial for the evolving of an efficient and effective housing ecosystem; ascertain what the current baseline situation is, and what the challenges are from a distance. Also to analyse what potentials are latent there.

“Define what mutually beneficial relationship can be created to ensure the actualization of the set objectives of the institution,” he said.

Besides, he said the group should find out the operating strategy and solutions that will unlock the the potentials, “and suggest appropriate mechanism for its enunciation and implementation.”

He said the last step would include the presentation and advocacy implementation to critical stakeholder institutions with the Tool designed.

 

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