AFFORDABLE HOUSING FOR ALL. When? by Don Abiodun Odedeyi

 According to the 2006 Census, Nigeria's population is about 140million.

With this figure, providing adequate and affordable housing in Nigeria is definitely a matter of importance.

This vacuum is surely something private sector cannot face alone taking into cognizance huge investment the sector has witnessed over the years

The Lagos zone alone has seen the opening of Ibafo-Mowe-Ofada-Redeem axis, the Ikorodu-Ijede axis, the Sango-Ifo-Ota axis, Ibeju-Lekki-Ajah axis, Badagry-Ojo axis mainly by the private sector. It is no gainsaying that the efforts of the private sector have, largely, been out of the ordinary Nigerian’s reach.

The major headache of many financial houses to finance mortgage loan is the unpredictable economy. This has cut courage that won’t allow many financial outfits to elongate mortgage tenure more than 3-5years. 

To minimize risk, virtually all finance houses in Nigeria demand an equity contribution between 20-50% with remaining payment (80%) spread between 12 months and 60 months.

But what has been government's effort to this sector?

Flashback

Looking back, successive governments in Nigeria tried their hands on low cost housing, especially the military regimes. Notable is the administration of the first civilian Governor of Lagos State, Alhaji Lateef Jakande who constructed several low-cost housing units in different locations in Lagos state but their efforts fell short of demand which has grown over the years.

The Goodluck Jonathan led-government recently kick-start the Nigeria Mortgage Refinancing Company (NMRC) which began it rollout of the first 10,000 housing units under the affordable home ownership scheme.

The Nigerian Mortgage Refinance Company (NMRC) is the brainchild of the Federal Government, Federal Ministry of Finance and the Central Bank of Nigeria (CBN) with support by the World Bank, which approved $300 million (about N48 billion) for the construction and provision of affordable housing scheme, among others, to Nigerians.

Though not publicized, 60,023 applicants registered for the first 10,000 slots rolled out in July 2014. But experts said about 100,000 housing will be needed annually.

HIGH and LOW of NMRC

Unlike the private fund mortgage scheme which requires Home-Owner-to-be to make a down payment between 20% - 50% and subsequent payments make within 3-5 years, the NMRC spreads payment between 10 - 15 years.

The Minister of Lands, Housing and Urban Development, Mrs Akon Eyakenyi indicated that current framework for getting titling for the land is being reviewed, it is knows that constraints imposed by the Land Use Act, a moribund and repressive Act that hinders mortgage financing and creates enormous obstacles. As a result of the Land Use Act, obtaining a Certificate of Occupancy (C of O) has become a big time avenue for large scale corruption.

Comparing the efforts of private sector and present government restart-initiative, I favour more, and welcome, government participation as it is more accessible, in reality, to average Nigerians than private sector's mortgage if the scheme is well managed.

Housing remain one of the major intervention with which government can alleviate poverty, touch the lives of average citizens BUT GOVERNMENT SHOULD NOT LEAVE IT THERE… provision of transportation systems; fast train, sea routes etc will make areas such as Badagry, Epe, Sango easily accessible and attractive. This will de-congestion down-towns with many getting to their work or destination in minutes

Sign of neglect as Website hasn't been updated since July 2014

Indication of things not going well is already showing on the organisation’s website which clearly show it has not been updated or visited by their staffs since July 2014 or there about.

SOME FINANCIAL HOUSE IN NIGERIA AND THEIR REQUIREMENTS

* First Bank

Minimum down payment of up to 30% subject to the location

Minimum loan amount on a mortgage - N1 million

Maximum loan amount on a mortgage - N50 million

* Standard Chartered Bank

Minimum 20% equity contribution

Maximum 20-year tenure (subject to a maximum age of 60 years)

Location of property – Lagos and Abuja

To register for Federal Government's NMRC, visit www.housingfinance.gov.ng/mortgage

Office Address: Wing A, 5th Floor, Pent House, Clans Place, Plot 1386A, Tigris Crescent, Maitama, Abuja.
Email: info@nmrc.com.ng

10th Floor, Elephant House, 214 Broad Street, Marina, Lagos, Nigeria