Analysts warn Lagos faces grave housing deficit crisis

With its population estimated by the UN-Habitat at about 21 million people and growing, and no corresponding investment in housing, analysts warn that Lagos, Nigeria’s economic hub may be headed for a crisis, unless deliberate steps are taken to increase the state’s housing stock as a matter of urgency.

The state’s housing deficit is presently estimated at two million units, with a larger percentage of the population living in slums and indecent accommodations which degrade humanity.

In 2013, Amnesty International, collaborating with Social and Economic Rights Action Centre (SERAC) had decried the living conditions of residents of Lagos, especially in densely populated areas of the state, such as Badia, Bariga and Amukoko, and called for action by both the state and federal governments.

Experts list the problems of cities growing out of control without commensurate infrastructure, as including exposure to physical and emotional health epidemics, as well sky-rocketing anti-social conduct such as crime, drugs and prostitiution. They add that such environments breed dysfunctional families and lead to high school drop-out rates, undermining the nations human capacity development prospects.      

To confront the housing challenge, the analysts have suggested the deployment of the public private partnership (PPP) model for the delivery of low-cost but decent houses to accommodate the fast growing population.

Olabode Segun, executive director, Sparklight Property Development Company Ltd, warns that unless this step is taken by the state government, the crisis could be such that will see Lagos return to the dark days when residents sought refuge under bridges, with all manner of illegal structures erected, just to have a roof over their heads. “People must live somewhere,” he said.

“This is the only way out for Lagos because I don’t see government doing it all alone. There is no pretending about it. The current government must partner with private developers and investors in housing. That is the way to avoid returning to where we’re coming from- living under the bridges and resorting to illegal structures because people must live somewhere,” said Segun.

Also speaking, Adetokunbo Ajayi, the CEO, Propertygate Investment Company Limited, said there is need for the government to encourage more private investment in housing, and this he said will come by the government investing in the development of infrastructure.

“Government’s business in building and construction should be in the area of providing the enabling environment for private sector operators. The enabling environment comes in form of good road network, electricity, water etc which are major impediments to housing development”, said, Ajayi.   

He further said the state government would need to come up with a policy framework that will bring about special funding for housing, stressing that “even if such fund is accessible only to public sector workers, it is a good start in the journey to bridging the housing deficit and averting its social implications.

He said the current interest rate does not encourage homeownership and explained that if somebody buys a house for N5 million and takes a mortgage at 25 percent interest rate, the house automatically becomes unaffordable.

Ladipo Lewis, chairman, Nigerian Institute of Architects, Lagos State branch, agrees. Ladipo observes that even where government provides social housing, it has to be accessed through mortgage, and that this is unaffordable at the current interest rate.

“I maintain that government should concern itself with providing the necessary environment to enable private sector operators to provide housing at affordable rate”, he said.

JOSHUA BASSEY