Partnership: Solution to Affordable Housing in Nigeria
ESV Michael Asikpata
Access to affordable housing is very critical to the growth and development of any nation. Globally, Nigeria has one of the fastest growing populations in the World, with an average of 2.5% annually. Over the years, decent and affordable housing has been a social and economic challenge in Nigeria, both in the rural and urban areas. According to the available statistics released in 2022 by the National Bureau of Statics (NBS), the Nigerian housing deficit was put at 28 million housing units.
With the above statistics, bridging the housing needs of the Nigerian growing population cannot be achieved without strategic partnership with the relevant development multilateral agencies, foreign agencies, and the private sector. But to boost partnership, the government has a pivotal role to play through the provision of an enabling environment that will allow for result driven partnerships. Strategic, aggressive, and continued investments in the real estate sector will go a long way in addressing the Nigerian housing needs. The major macroeconomic challenges like the fluctuating exchange rate, high inflation, and insecurity should be immediately addressed.
More than half of the World’s growing population lives in urban areas. By the year, this proportion is expected to rise to 68%. According to a publication by the United Nations (UN), the number of people living in slums has grown from an estimated 792 million in 2000, to over 1 billion in 2016. Most of these economically displaced people who cannot afford decent housing accommodation are found in Less Developed Countries (LDCs), including Nigeria.
The Sustainable Development Goals (SDGs) were designed to proffer long lasting solutions to the high dreaded problems that are facing mankind, including housing needs. The SDGs number eleven speaks directly on the need to address housing deficit. The envisaged Sustainable Cities and Communities can only be achieved through strong partnership with the international agencies and the private sector.
In Nigeria, successive governments have tried their hands on a number of policies aimed at addressing the housing problem. One of the reasons why these policies did not address the housing concerns was due to the fact that such policies were not private sector driven.
Partnership with both local and foreign mortgage institutions is recommended for President Bola Ahmed Tinubu led government. Government interventions that are aimed at addressing the Nigerian housing needs should be private sector led. The role of government in this regard, is the provision policy guidelines and the congenial environment for businesses and the real estate sector to thrive.
Investment opportunities abound in the Nigerian real estate sector. Thus, the window of opportunity should be extended to foreign investors, development partners, and multilateral agencies. African grown multilateral agencies like the African Development Bank (AfDB), have a catalytic role to play in this regard. The Nigerian government should engage in strategic partnership with the International Finance Corporation (IFC), the private sector arm of the World Bank for a robust multilateral financing of housing projects in Nigeria.
ESV Michael Asikpata, is a registered Estate Surveyor and Valuer. He is the Head of Practice at Mike Asikpata Consulting, a leading Nigerian Firm of Estate Surveyors & Valuers.
