Inadequate Urban Housing continues to plague Nigeria. Various efforts in the past has been concentrated around government control or entirely private sector provision, the prevailing result has been inadequate delivery where government directly contracts out housing schemes, and expensive housing where intervention by private enterprise. Our proposal to the government in the article submitted, is to create conducive climate for private investment in housing provision. If government makes it cheaper for private business to develop housing, their deliveries will be cheap and withing reach of the lower income earners.

1. DOUGLAS OKAFOR
Development Finance Impact Project – Digital Artifact
Financing for Development: Billion to Trillions to Action
World Bank, December 2015
HOUSING DEVELOPMENT IN NIGERIA: SUSTAINABLE AND
AFFORDABLE FUNDING
1.0 Introduction
Housing is one of the basic needs of man. In all its ramifications,
housing is more than mere shelter, embracing all social services and
utilities that go to make for habitable environment. Framers of
Section 16(1)(d) of 1999 constitution under the Fundamental
Objectives of State Policy understood this essentially and sought to
reinforce this position by compelling the Nigerian State “to provide
suitable and adequate shelter for all citizens”.
Attaining such lofty heights or meeting adequately the demands
remains a major challenge for Nigeria just like other countries in
sub-Saharan Africa. However one reason why Nigeria’s case is chronic
is due to the share volume of our population(close to 200 Million)
and an urban ratio of almost 47% living in few cities.
2.0 The Urban Housing Sector: Problems and Challenges
The proportion of the Nigerian population living in urban centres
has therefore bludgeoned phenomenally over the years; while only 7%
of Nigerians lived in urban centres in the 1930s, and 10% in 1950,
by 1970, 1980 and 1990, 20%, 27% and 35% lived in the cities
respectively. Currently, over 46% of Nigerians live in urban centres
of varying sizes(Olotuah & Obadoye, 2009).
The problems and challenges this poses in Nigeria are immense.
Millions live in substandard environments called slums, plagued by
squalor and grossly inadequate social amenities, such as, a shortage
of schools, poor health facilities and lack of opportunities for
recreation among others. Easily observable and very frightening are
the general human and environmental poverty associated with such
dwellings which lack basic human conducive facilities such as water,
electricity, waste disposal.
3.0 Previous Efforts to Solve the Housing Problem
All governments in Nigeria since 1960 has placed provision of
housing as a major priority. Legislation including Employees Housing
Scheme (Special Provision) Act (Cap 107); Land Use Act 1978;
Mortgage Institutions Act, 1989(Cap 231); Federal Housing Authority
Act, 1990(Cap 136); and National Urban Development Policy of 1997,
among several others were enacted to help drive a National Housing

2. Policy. Recent reforms also included the establishment of a specific
Federal Ministry of Housing and Urban Development in July, 2003
which was saddled with the responsibility of adequately addressing
the complex problems of the urban sector. Unfortunately these
efforts fell short and the burden of providing appropriate housing
is still borne by the individual with no help from State or even
mortgage support.
3.1 Models of Government Intervention
Government has gone from directly constructing lowcost housing, to
PPP Mass Housing schemes, yet they continue to fall short.
Federal Housing Authority Low Cost Housing Estate, Kubwa Abuja
Direct house construction programs of past governments both at State
and Federal levels haven’t delivered adequately despite huge
allocations of money to the housing sector in various Development
Plans, very little of specified targets in have been met. Reasons
include: inaccurate analysis of low income earners housing needs;
the proposal of exotic housing models without recourse to climate,
cultural and socio-economic environments; diversion of funds for
execution of housing programmes; undue politicizing of government
housing programmes; and insensitivity of government to the
operations of the private sector in housing delivery.
Public Private Partnership efforts at various levels has mostly
yielded results that didn’t benefit the supposed targets, the lower
income class for whom the need for a solid roof is a necessity.
Rather, deliveries from PPP housing development has always tended to
outprice them, ending up the exclusive preserve of only the rich.
Ms Ama Pepple erstwhile Federal Minister of Housing asserts that
this is usually due to the source of funding and investment which
developers deplore to the projects. Bank loans remain the easiest to
access yet mostly short-term(3-5years),with costly premiums(22% in
2015) and stiff repayment options, putting the incidence of these
factors made the deliveries expensive.

3. Examples of PPP housing projects which ended up not delivering the
low cost houses touted for its conception abound from State to
Federal levels- Abuja Mass Housing Schemes; Zoo Estate in Enugu;
Tinapa Housing Scheme in Calabar, etc. The most prominent cases of
atrocious housing schemes which displaced the intended low income
bracket remains The Rainbow Town Redevelopment Project in Port
Harcourt; and the Lekki Peninsula Housing Scheme.
Rainbow Town was an urban slum which grew in the shadows of the
Trans Amadi Industrial Layout from the oil boom era in the late
1970s and existed till it was demolished in 2008. While it lasted,
it had over 30,000 households in a 20hectre area built of leftover
construction shingles and wood. Health and Social facilities were
non-existent so it was safe to say it was a hazard not just to the
inhabitants but also to the companies in Trans Amadi and the city as
a whole.
Before and After Pictures of Rainbow Town Development in Port Harcourt
The project financed by First Bank and Rivers State Government was
sold to the populace as urban renewal which will provide the
diaplaced residents with qualitative yet affordable housing. However
when the 1st
Phase was completed in 2013, pricing were far beyond
even the middle income bracket talk less of the low earners. A
single family Villa was priced at NGN90 million($450,000),
Apartments ranged from NGN60 million($300,000) each. Safe to safe
not one former resident of the area can afford the new housing.

4. 4.0 Framework for developing a Sustainable Housing Policy for
Nigeria
Very soon we expect the new government to articulate its housing
policy. Our concern is for it not to go same way previous efforts
ended. The reality presently is Nigerian Economy is feeling the
impact of lower oil prices. Government revenue cannot support
welfarist packages like a lowcost housing scheme, yet the government
cant shy away from its responsibility. We must provide conducive
environment and encourage alternative funding for meeting the
housing demand. Several factors can make this necessary:
I. Updating Legislation to create conducive environment for
investment
The Land Use Act of 1978 which vests all land in the
government is an obstacle to making land available for housing
development. It must be amended to make land transactions
easier and qualify land as a collateral for securing
development loans and grants. Similarly, laws to protect the
sanctity of contracts entered by government must be enacted,
this will give private sector and foreign investors confidence
to put their funds in housing development with its attendant
long term yield.
II. Enhancing the impact of the private sector via inclusion and
sustainability
Now more than ever, it is critical for inclusive and
sustainable business models to drive the sustainable housing
quest. The models must involve low-income materials,
contractors and suppliers to deliver houses and provide
services where they were previously unaffordable or
unavailable. This can be achieved by getting private sector
buy-in. Companies like Dangote Cement, First Aluminum, GMP and
other building component manufacturers must be involved in
housing plans to enable cheaper deliveries.
III. Stable Macroeconomic Environment
Stable macroeconomic environment is necessary to providing
affordable housing. Lenders, investors, and borrowers prefer a
stable economy where decisions can be taken without any
apprehension. The government must continue to keep Inflation
at single digit level. Interest rates must be pushed lower for
mortgages and mortgage-based investments to improve.
IV. Harness all available resource pools
Resource pools like ODA, Remittances, Portfolio funds and
Government equity must be made available for investment in
housing development. Nigerian Pensions fund after 10years of
reform remains a very large untapped pool for housing
development. Investors should be able to access these at
minimal interest rates and mortgages institutions should be
able to pool from CBN bonds as well.

5. Conclusion
The goal of providing affordable housing can be achieved, but
government has to put the necessary conditions in place. It won’t be
done in one day or even one regime, but previous efforts especially
since 2003 has shown investments will start even in difficult
environments so long as efforts are being made to create conducive
climate. With the opportunity even offered by the SDGs, the time
make this work is now.
References:
Akeju, A.A(2007) ‘Challenges to Providing Affordable Housing in
Nigeria’, 2nd Emerging Urban Africa International Conference on
Housing Finance in Nigeria, Sehu Yar'adua Center Abuja, October 17-
19. Available at
http://nigeria.usembassy.gov/uploads/images/EpaZi8mzSJHiFpSWvhOT2A/C
hallenges_affordable_housing_update_Akeju.pdf
Adesoji D.J(2011) ‘Urbanization challenges and housing delivery in
Nigeria: The need for an effective Policy framework for Sustainable
Development’, International Review of Social Sciences and Humanities
Vol. 2, No. 1, pp. 176-185
Olotuah, A and Bobadoye,S(2009) ‘Sustainable Housing Provision for
the Urban Poor: A Review of Public Sector Intervention in Nigeria’,
The Built and Human Environment Review 2, 51- 63.