Following the failure of several mortgage schemes floated by both the federal and state governments, stakeholders in the Nigerian real estate sector have called for new ways to address the massive imbalance in the housing industry.
They insisted that the development had led to a high deficit in low-income segment of the market and that a new scheme would allow Nigerians own homes and ensure economic growth of the sector.
The Chief Executive Officer, Lords Home limited, Mr. Success Obi, urged the government to emulate other developing countries like Mauritius, Morocco and Tunisia that have empowerment schemes and offer subsidised loans for home ownership for citizens.
According to him, mortgage practice in Nigeria, the National Housing Fund and Lagos Home Ownership Mortgage Scheme, have failed as they do not capture the needs of low-income earners in the country.
He said, “Government should implement empowerment schemes for social housing and international home ownership programmes, offer subsidised loans for low-income earners, and initiate a public private partnership programme that subsidises lands for developers to build social housing for a timeframe of five years.
“It should not be left alone for the private sectors have created several schemes that are not affordable for the low-income earners. I won’t blame the private firms because their goal is to make profit,” he said.
The Manager, Programmes, Heinrich Boell Stiftun, Mrs. Monika Umunna, explained that unavailability of the innovations had created housing crisis for both the middle and low-income earners across the country.
She cited that in Munich, Germany, most people did not own homes, but rent, but that people preferred to own homes rather than rent in Nigeria.
According to her, for Lagos and other cities to become smart cities, the beliefs and ideologies need to be changed.
“Urbanisation is rapid, people migrate into the city daily and they are not leaving. Looking at the rate of population, everyone cannot build a home, which has led to the necessity to build high-rise buildings. But high-rise buildings are expensive due to elevators and high maintenance of the buildings,” she noted.
Meanwhile, the Arctic Infrastructure and partnering Heinrich Boll Stiftun plans to launch the first Lagos Development Envision Lab, a four-day residence training programme that will bring together selected talented youth from slums and informal settlements as well as young professionals from the built environment to share knowledge on the fundamental problems and alternative development strategies for the city of
Lagos.
The Project Director of Arctic Infrastructure, Mr. Lookman Oshodi, said the project envisioned a definite housing design, which would be more comfortable and more appealing in terms of aesthetics for low-income earners, thereby creating a functional and a liveable environment for all residents in the city of Lagos, if the housing model is successful in the city of Lagos.
“It also visualises how it could be replicated in other parts of Nigeria. With regard to the mortgage system, attempts have been made, but the culture of mortgage has not been realistic in Nigeria.” he said.
