Practitioners stated that the lack of cooperation has been identified as the biggest challenge confronting the housing sector in Nigeria. The practitioners said that in spite of the effort channeled by firms and developers, majorly individuals, inability to get affordable housing and mortgage still occurs in the housing sector. They highlighted difficulties: expensive cost of land, excessive cost of building materials, luxurious cost to obtain planning approval and titles, cost of labour and lack of cooperation from the government which slows down the industry.
Experts asserted that the better ground for this sector is cooperation from all stakeholders. Mr. Sola Enitan, the founder and chief executive of Cromwell Professional, affirmed the first step which is to define the term collaboration, while figuring out the type of house for development, and the people that will live in it and the location where the house should be sited. Enitan affirmed his belief that some questions should be answered before engaging in the implementation strategy, when he was asked whether the Federal Government is a good home provider or is it better to work with the states of the federation whose governors hold land in trust.
Evaluation of performance and collaboration would go a long way.
Mr. Festus Adebayo, the Executive Director, Housing Development Advocacy of Nigeria, suggested a detailed evaluation into the collaboration between the Central Bank of Nigeria, Mortgage Bankers Association of Nigeria and the Federal Mortgage Bank of Nigeria (FMBN). Adebayo said that it is high time to evaluate the performance of mortgage banks and their policies. In addition, Onabekun Adeku who is also an expert said that collaboration will go well if risk is considered in the built environment; environmental target and impact are considered, developing strategies, establishment of methodology for data gathering with validation and ensuring constant decision making.
According to Adeku, he said that in order to develop a strategy for inexpensive housing, there must be political will and the values of stakeholders’ involvement in place. Mr. Ugochukwu Chime, the immediate past president of the Real Estate Developers Association of Nigeria, stated that there is a need for inclusive collaboration in strategizing a practical solution for housing industry, where multiples stakeholders and players come with their value for a dynamic transaction. He added that he had supported Federal Mortgage Bank of Nigeria (FMBN) for its growth.
Development of young and enthusiastic minds to serve.
Adeku stated the non-participation of others raised as an excuse to attack the challenges that FMBN faces, which ought to serve as the ground for construction and development. He highlighted the challenges in the supply and demand sector. He emphatically stated that the remedy is to confront the government while emphasizing on the path not addressed by them, and also integrate the stakeholders coherently. Adeku added that one prominent issue is Nigerian Mortgage Refinance Company (NMRC) which is non-domesticated and leads to Modern Mortgage Foreclosure Law (MMFL).
The inflation develops and aligns with the exclusive jurisdiction of FGN under financial policy along with the policy that guides land administration, and controlling 37 land administering entities. In his statement, he asserted his expectation through collaboration and institutional alignment. Chime added that there must be integration of component parts which house the ecosystem. He listed the procedures, which has to do with grouping enthusiastic and willingly young people who are ready and interested in serving, by developing their minds. The sector will ensure bi-weekly payments to establish commitment.
Advocacy implementation and presentation should be done.
He said that they will use their wisdom and knowledge for collation of road maps to determine the way forward in the housing sector. Also, the group will be charged with identification of the full housing value chain and the relevant stakeholders and players whose support is needed for effective and efficient running of the industry. Chime admonished the group to find out the operating strategy that has the possibility of unlocking the potential, while suggesting efficient mechanisms to enunciate and implement. He concluded that advocacy implementation and presentation to relevant stakeholder institutions is the last thing to do.
Related Link
NMRC: Website
