Stakeholders urge government to resurrect home completion loan scheme
With ample opportunities for the housing industry in Nigeria yet to be explored through the mortgage finance sub-sector, stakeholders have called on the government to revisit home completion loan scheme.
The scheme supports the new paradigm for unlocking housing microfinance and leverages on incremental development that most Nigerians use in acquiring new homes as well as renovate and upgrades existing structures. The scheme is expected to catalyze the demand side of the equation.
Stakeholders that attended the 10th Abuja Housing Show in Abuja, organised by FESADEB Communications Limited, agreed this in a communiqué. Dignitaries that attended the three-day event include Senate President, Dr. Bukola Saraki, Kano State Governor, Minister for Power, Works and Housing, Babatunde Fashola, Minister of State for Environment, Jibrin Ibrahim, and commissioners of Housing from various States.
The participants recommended that the State governments should create more access for partnership with the Nigerian Mortgage Refinance Company (NMRC) in order to develop a more enabling environment for housing delivery. Furthermore, the State governments should restructure relevant ministries in order to minimize bottlenecks that hinder large scale production of housing for Nigerians at N 3million and less.
Other recommendations are ONE: Mortgage institutions should leverage on the fact that cooperatives can provide off takers, bearing in mind that cooperatives have a pedigree of organized funds collection with assured recovery. Therefore, partnership between cooperatives and Real Estate Developers Association of Nigeria (REDAN) should be facilitated.
TWO: Nigerian Builders should take advantage of robust and potent market in the Diaspora. Indigenous companies can strengthen their profiles through strategic World Bank grants targeted at developing companies in the building industry.
They observed that affordable housing could create jobs as it has a large market in millions. It is a potential growth sector. “We need measures in place to prevent the rich from buying off potential low income houses. There is need to involve government at all levels of housing provision deliberations. Government should and need to be involved, because only 54 percent equity contributed has worked. Government can provide land cheaply to reduce cost by 25 per cent. Government can provide infrastructure to reduce cost by another 25 per cent. Mortgage loans can be amortized successfully when deducted from source.
“The role of Government should be limited to creating enabling environment. Take away cost of land, wave charges and focus on the full implementation of the NHF Act. There is need to enhance labour productivity through paradigm shift and building technology with job creation. Everything is not done efficiently,” they added.