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Innovation in housing cooperative framework model a significant tool in achieving sustainable mass housing in nigeria 26 may2014
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Innovation in housing cooperative framework model a significant tool in achieving sustainable mass housing in nigeria 26 may2014


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  • 1. INNOVATION IN HOUSING CO-OPERATIVE FRAMEWORK MODEL: A SIGNIFICANT TOOL IN ACHIEVING SUSTAINABLE MASS HOUSING IN NIGERIA Presentation Template By Habeeb Shuaeeb Built Ability in Nigeria (BAIN) Limited. Lagos.; National Housing Summit, Shehu Yardua Center, Abuja. 2nd – 4th June 2014
  • 2. Twitter:@BAINltd Table of Content  Thought Starter  Overview of Housing Co-operatives in Nigeria  Collaborative Partnership in Delivering Mass Housing  Integrating Framework Models for Mass Housing Delivery  Benefits and Constrains of Housing Co-operative Societies in Nigeria  Proposed Collaborative Co-operative Housing Model (CCHM) for Sustainable Mass Housing in Nigeria  Guidelines for Effective Integration of CCHM  Roles and Limitations of Federal, State and Local Governments  Recommendations  Conclusion 2
  • 3. Twitter:@BAINltd Thought Starter The huge housing deficit of over 17 million homes and the demand for affordable and quality shelter across Nigeria particularly amongst the middle-income and low-income earners is posing a great risk not just to the health of the majority but to the socio- economic equilibrium of mainly the urban and sub-urban settlers in the Country. 3
  • 4. Twitter:@BAINltd Overview of Housing Co-operatives in Nigeria Definition of Housing “Housing is defined as an instrument for political stability, economic prosperity, social welfare and household well-being and an economic, physical product – which requires various parallel and consecutive processes, services, suitable resources and relevant systems in order to create and maintain quality, sustainable living environments for human beings.” Source: Van Wyk, 2009 4
  • 5. Twitter:@BAINltd Cont… Definition of Housing Co-operative “Housing cooperatives is defined as a legally incorporated Group of persons, generally of limited means and democratically organized, pursuing the same cause of meeting the common need of housing.” Source: Akinwunmi et al, 2012 5
  • 6. Twitter:@BAINltd Cont…. Classification of Housing Co-operatives – House Building Societies – House Mortgage Societies – Tenant Co-partnership Housing – Tenant-Ownership Housing Societies 6
  • 7. Twitter:@BAINltd Cont…. Statistical Data on Housing – Current Housing Deficit: 17 Million – Recent Estimated Housing Stock of 23 per 1000 inhabitants Data Showing Estimated housing deficit from 1993 -2014 Year Housing Deficit Population Cause 1993 4 million 104 million Mortgage Inefficiency 2007 8-10 million 145 million Slum demolition and Urban migration 2013 - Date 16-17 million 168 million Overpopulation, Urban Expansion and Increased Poverty 7
  • 8. Twitter:@BAINltd Cont…. Diagram of Cooperative Housing Society Source: Yuri Artibise, 2013 8
  • 9. Twitter:@BAINltd Collaborative Partnership in Delivering Mass Housing Definition: Collaborative partnership in housing delivery is referred to as the pooling together of resources from various stakeholders, emphasizing on individuals input towards minimizing waste of limited resources and maximizing results achieved. 9
  • 10. Twitter:@BAINltd Cont…. Collaborative Partnership for Mass Housing Delivery in Nigeria Mostly Comprise of: – Federal and State Governments – Finance Institutions – Private Commercial Housing Developers – Primary Mortgage Institutions – Commercial Banks 10
  • 11. Twitter:@BAINltd Integrating Framework Models for Mass Housing Delivery Framework Models are developed to suit mass housing. Mass housing models are suitable for socio-economic situations and geo-climatic condition. Countries that are successful at integrating mass housing models includes: – Canada – United States of America – South Africa – Poland – Germany – India 11
  • 12. Twitter:@BAINltd Cont… Typical Institutional Framework for PPP housing delivery in Nigeria Example of Framework Model Source: Ibem 2010 12
  • 13. Twitter:@BAINltd Benefits and Constrains of Housing Cooperatives in Nigeria Benefits • License to operate • Democratic process of operation • Access to loan and housing incentives • Reduce housing crisis across the country • Recovery of loan • Improved welfare of members • Open membership • Effective utilization of resources Constrains • Limited finance • Inexperienced management team and unqualified professional • Increased level of corruption and housing politics • Lack of cooperation • Poor networking amongst members • Difficulty in procuring land • Poor framework model for collaborative project delivery • Default in rental payment • Inadequate policy and legislative framework • Lack of incentives 13
  • 14. Twitter:@BAINltd Proposed Collaborative Cooperative Housing Model for Sustainable Mass Housing in Nigeria Source: BAIN Limited Research, 2014 14
  • 15. Twitter:@BAINltd Cont… Components of CCHM – Property Developers – Research Institute/Local Building Materials Manufacturer – Professional Bodies – Financial Institutions – Public Institution – Statutory Monitory Establishments – Programme Driver – Cooperative Housing Societies 15
  • 16. Twitter:@BAINltd Guidelines for Effective Integration of CCHM Key Players: – Effective Price Control Mechanism – Quality resource and material control systems – Non-interference clauses in cooperative operations – Quality project management system – Interaction between operators within the CCHM – Clearly defined roles and limitations for key players 16
  • 17. Twitter:@BAINltd Cont… Cooperative Housing Societies – Membership constitution – Clearly defined member’s contribution, conditions for and allowable means of change – Democratic system of governance – Stiff penalty for defaulters – Equal opportunity to members 17
  • 18. Twitter:@BAINltd Cont…. Financial Disbursement – Financial background check for beneficiaries – Minimum contribution towards the National Housing Programme or 20-25% down payment of the total housing cost – Membership of a housing cooperative society for a minimum period of time (i.e. 3years) – Housing cooperative societies should be registered for a minimum period of time (i.e. 5years) to qualify for participation – Compliance with listed requirements to access funds, e.g. provision of Guarantee for all members accessing the fund 18
  • 19. Twitter:@BAINltd Cont… Public Institutions – Monitoring and supervisory mechanism – Sufficient comprehension of cooperative legislation – Non-interference or influence in housing delivery process – Provision of database on housing cooperatives 19
  • 20. Twitter:@BAINltd Cont… Housing Cooperative Legislation – Obligation and rights of members – Simplified housing cooperative structures – Dispute settlement and dissolution of contracts – Legislative procedure for securing finance executing housing projects – Dissemination of housing cooperative law 20
  • 21. Twitter:@BAINltd Roles and Limitation of Federal, State and Local Governments Roles: – Provision of motivational structure – Creation of platform to check misapplication of funds – Provision of improved infrastructural facilities – Continuous awareness program amongst stakeholders on the benefits of CCHM – Encouraging research institutes in developing alternative and innovative building products and processes – Establishment of database to monitor the performance and projection of CCHM in each region of the country – Provision of Legal framework, approval and certification of guidelines for all building processes and components 21
  • 22. Twitter:@BAINltd Cont… Limitations: – Limited participation of non-housing cooperative members – Equity financial contribution by the Government for mass housing development – Limited control over the cooperative housing members – Population-based ratio distribution of houses within a region – Limitation in housing ownership by Government officials – Adherence to mass housing distribution model 22
  • 23. Twitter:@BAINltd Recommendations  Government should recognize the significance of CCHM as a key tool in implementing mass housing delivery  Critical review of roles to be played by both Federal and State Governments to ensure equilibrium in the integration and implementation of this framework model for mass housing delivery in Nigeria  Housing cooperatives should strengthen their membership connections within Local and State Governments in order to achieve desired housing delivery goal 23
  • 24. Twitter:@BAINltd Cont…  Federal and State Governments should exhibit their commitment through the provision of housing incentives, such as subsidy for housing cooperatives, improved infrastructural facilities, tax rebate for mass housing developers.  Funds should be set-aside by both Federal and State Governments to encourage research institutes and local building material producers in manufacturing alternative but durable and cost-effective building materials to reduce dependence on imported equivalents; and thereby strengthen the Nigeria’s economy  Federal and State Governments should source for accessible funds with lower interest rate through Bonds and PFIs. 24
  • 25. Twitter:@BAINltd Conclusions The proposed framework which has its focus on housing cooperatives with an independent Special Purpose Vehicle (SPV) administrator and some adapted stakeholders is vital in achieving a cost- effective, quality and timely delivery of housing in urban, sub-urban and rural areas of Nigeria, if properly implemented. 25
  • 26. Twitter:@BAINltd26 What our Company Does INNOVATION EXCELLENCE IN BUILT ENVIRONMENT Dedicated to promote future development THANK YOU Q U E S T I O N S ? ? ? Architectural & Space Management Consultancy Service on Sustainable Built Environment Renewable Energy Service Provision Construction & Project Management Capacity Building on Sustainable Built Environment Construction Quality, Health & Safety Services