‘Why FG needs N15 trillion to build social houses’

Stakeholders in the built industry have said the Federal Government would need N15 trillion to meet the housing construction value change, as 50 per cent of Nigerians are still expecting to own apartments to deplete the current housing deficit.

They also explained that seven years ago, the building value was worth N8.9 trillion, house rent value at N7 trillion, while the demand stood at 30 per cent. But currently, things are not the same as 50 per cent of Nigerians need houses.

Dr Tayo Aduloju of Nigerian Economic Summit Group (NESG) said based on available indices, the hope of having affordable social housing remains a mirage, while mortgage loans are declining, making even the rich people cry about interest rates.

Regarding financing houses, he urged the Federal Housing and Urban Development and its agencies to offer solutions to the current housing deficit.

Aduloju declared: “Social mass housing scheme must be recalibrated because construction has the capacity of increasing the country’s economy. Recapitalisation of existing financial institutions is the key factor, as it has done in Indonesia and South Korea.”

Tony Aspire of Real Estate Association of Nigeria, Lagos chapter, called on government at all levels to prioritise housing by making funding accessible to developers and ensuring friendly mortgage interest rates.

Gbadewole Kayode of Crown Luxury Properties, in a presentation, said there have been issues surrounding sourcing mortgage financing, and that they have become serious challenges in Nigeria.

He noted that it has become dynamic accessing funds from the Federal Government and its agencies.

Kayode regretted that loan interest has gone beyond what the common people can pay.

On his part, Peacemaker Afolabi of Brass and Castle Homes and Properties Limited, argued that issues of financing and policies are challenges that the government must look into, apart from providing infrastructure for housing development.

He called on the government to mandate the Central Bank of Nigeria to always factor key players in the housing sector into its programmes, maintaining that their firms do not need money, but raw materials to build and deliver mass houses for the people.

Similarly, the Federal Capital Development Administration (FCDA) said it granted over 2,000 development permits to real estate developers for the construction of affordable housing units last year.

Its Director of Control, Murthtar Galadima, disclosed in a presentation at the ongoing Africa International Housing Show in Abuja, saying they are mindful of the Master Plan.

He explained that in the process of issuing the permits to developers, they have equally created 18,000 jobs, warning land grabbers to desist, or be prosecuted.

Also, Prof. Timothy Nubi of University of Lagos, who is hopeful that real estate business would grow the country’s economy, called on the Federal Government to review the industry holistically.