Challenges to Nigerian Housing Policies
Challenges to Providing Affordable Housing in Nigeria
By Akeju, Ajibola Andrew
Economic Specialist
US Embassy, Abuja
Being a Paper Presented at the 2nd Emerging Urban Africa
International Conference on Housing Finance in Nigeria,
Held at Sehu Yar'adua Center Abuja, October 17-19, 2007
Introduction
Housing is one of the most basic of human needs. Provision of houses through the creation of mortgages is taken for granted in developed countries; however, it remains a major challenge in developing countries, especially in sub-Saharan Africa.
All governments in Nigeria since independence highlighted housing as a major priority.
Unfortunately for over 47 years of its independence, Nigeria is yet to develop a vibrant mortgage market and houses continue to be provided through the tortuous traditional method of buying land and building over some years, which could be an individual's entire life time. In many cases such buildings are left uncompleted or individuals have to deplete their entire life savings in order to build a home.
One of the major housing policy initiatives was the Policy on Affordable Housing that was initiated in 1979 by the Shehu Shagari Administration. The policy though laudable was unable to meet the nation’s housing needs because it was based on the unsustainable tenet that houses will be provided by government (this remains the anomaly that we must resolve). The implementation of the 2002 housing policy reforms was a promising beginning, but a lot remains to be done.
In a recent news report on the Nigerian Housing Sector aired on African Independent Television
(AIT), it was stated that between 1973 and 2006, the Federal Housing Authority (FHA) built only
30,000 housing units nationwide. According to Mr. Tunde Ipinmosho of the Federal Housing
Authority (FHA), the current housing deficit is about 12 million homes. If we take the current population of 140 million Nigerians as reported by the National Population Commission after last year's census
By Akeju, Ajibola Andrew
Economic Specialist
US Embassy, Abuja
Being a Paper Presented at the 2nd Emerging Urban Africa
International Conference on Housing Finance in Nigeria,
Held at Sehu Yar'adua Center Abuja, October 17-19, 2007
Introduction
Housing is one of the most basic of human needs. Provision of houses through the creation of mortgages is taken for granted in developed countries; however, it remains a major challenge in developing countries, especially in sub-Saharan Africa.
All governments in Nigeria since independence highlighted housing as a major priority.
Unfortunately for over 47 years of its independence, Nigeria is yet to develop a vibrant mortgage market and houses continue to be provided through the tortuous traditional method of buying land and building over some years, which could be an individual's entire life time. In many cases such buildings are left uncompleted or individuals have to deplete their entire life savings in order to build a home.
One of the major housing policy initiatives was the Policy on Affordable Housing that was initiated in 1979 by the Shehu Shagari Administration. The policy though laudable was unable to meet the nation’s housing needs because it was based on the unsustainable tenet that houses will be provided by government (this remains the anomaly that we must resolve). The implementation of the 2002 housing policy reforms was a promising beginning, but a lot remains to be done.
In a recent news report on the Nigerian Housing Sector aired on African Independent Television
(AIT), it was stated that between 1973 and 2006, the Federal Housing Authority (FHA) built only
30,000 housing units nationwide. According to Mr. Tunde Ipinmosho of the Federal Housing
Authority (FHA), the current housing deficit is about 12 million homes. If we take the current population of 140 million Nigerians as reported by the National Population Commission after last year's census