Nigeria faces a housing crisis due to affordability issues for low- and middle-class citizens, particularly in urban areas. With 1.6 billion people worldwide lacking access to adequate shelter, a multifaceted approach is needed to provide affordable housing options. This includes sustainable, affordable housing tailored to essential needs. Innovative building techniques, public-private partnerships, and community-led initiatives can help address this issue, making affordable housing more accessible to different economic classes and improving health and stable economic health. This article therefore explores the key strategies to enable affordable housing in Nigeria.
“To encourage affordable housing projects, the Nigerian government should consider these initiatives.”
Innovative building materials and techniques
The sure way to reduce construction costs is through the implementation of cost-effective building materials for houses—that way, houses would become affordable. Utilising recycled materials such as rubber, bamboo, thatch, and reclaimed wood reduces construction costs by 10–30 percent, allowing for an easy building process and contributing to environmental healthiness. (World Bank)
Modular and prefabricated housing is another approach to enabling affordability. This method allows for sections of a home to be constructed outside the construction site and then later assembled at the location. Not only is this method cost-effective, reducing costs by 20 percent, but it also saves construction time by 20 percent (McKinsey). Practicing this method are countries like Sweden and Singapore, where houses are constructed at a timely pace while at the same time exhibiting high-end quality. This method has been beneficial in Singapore, contributing significantly to the nation’s numerous affordable housing schemes, where over 80 percent of its citizens comfortably live in public houses.
3D printing is fast becoming a prominent construction technique that is cost-effective, as evident in some construction projects, reducing building expenditure by 70 percent. ICON in Mexico executed 3D-inclined projects, where they collaborated with an NGO, New Story, building 3D-printed homes in a community, each home costing only $10,000. This project reflects how affordable technological techniques could be, as it stands as a viable strategy for the housing crisis.
Public-Private Partnerships (PPPs)
Public-private partnerships are beneficial in reducing construction strain. Governments incentivise projects and reduce material costs, while private developers focus on quality homes at affordable prices. The Low-Income Housing Tax Credit (LIHTC) program in the US has produced over 2.3 million affordable rental units since its inception. The Singapore Housing Development (HDB) scheme, jointly owned by the government and private developers, provides affordable and sustainable housing for citizens. Both programmes demonstrate effective federal inputs in affordable housing.
These case studies reflect the flexibility and success of PPPs. The collaborative approach between the government and private developers is effective and, as such, should be encouraged in Nigeria for the same impact. Collaboration like this addresses concerns related to building finance and regulation, which are causative agents for unaffordable houses.
Inclusive zoning and policy initiatives
Inclusive zoning policies, such as mandatory set-aside projects in New York and San Francisco, have led to the creation of over 50,000 affordable units in new developments. The government Land Banking Act, which proactively acquires lands for future housing projects, can also help stabilise housing prices in countries like Germany and Singapore. To encourage affordable housing projects, the Nigerian government should consider these initiatives. To alleviate financial burdens on developers, such as reduced fees for permits and grants or access to interest-free loans, the government could provide incentives, such as reduced fees for permits and grants, which would further reduce the national housing deficit challenge.
Flexible financial models
Homeownership isn’t common among middle-class people in Nigeria, and a reason behind that reality is due to poor funding. Initiating flexible financial models can, however, change the narrative, allowing people from diverse income statuses to hop on rent-to-own programs. This program allows tenants to build equity over a house within a specific time frame. This program has increased the rate of home ownership by 20 percent among low- and middle-income earners in Nigeria. This is flexible, as prospective homeowners do not have their money swallowed by the scheme, granting them the chance to pay in bits until payment is complete.
Microfinance is a viable option for low-income households in cases where traditional banks’ loan rules are too stringent. It has transformed affordable housing by encouraging homeownership. However, it could be improved with government subsidies and grants, covering half or a quarter of housing costs. As models evolve, homeownership stability becomes more achievable.
Community-led housing initiatives
Community-led housing initiatives simply refer to the collective standing of communities to own land or pool resources together to build housing projects that would be rented, leased, or sold at affordable prices. Not only does it give middle-income earners the chance to own homes, but it strengthens the economic space for the community. Housing cooperatives and land trusts (CLTs) are the two prominent models in this regard that facilitate collective ownership and long-term affordability.
Community land trusts are legal processes that allow communities to acquire lands with binding agreements, limiting resale. These trusts pool resources to build or sell affordable housing units, providing economic stability and allowing residents to control housing prices and conditions, despite market pressure or volatility.
Sustainable design and energy efficiency
Designs for buildings shouldn’t be executed haphazardly with either inferior or energy-consuming materials. Designs should be sustainability-driven, where they significantly reduce energy and utility costs, giving room for affordability. Green building standards should be incorporated into housing projects for lesser maintenance expenses and a safer world. Green equipment and facilities like solar panels, efficient insulation, and water-saving systems integrated into buildings contribute to supporting environmental goals and sustainable urban growth.
Conclusion
As a country, Nigeria can bridge the socio-economic gap, where every class of people can afford a decent home to stay in. This would decrease the friction of classism and curb part of the damage caused by urbanisation. Through the application of the aforementioned multifaceted approaches, affordable housing can be achieved. From innovative building materials to inclusive zoning, public-private partnerships, and community involvement, among many others. Case studies in these scenarios are evidence of the effectiveness of these approaches, hence becoming worthy for Nigeria to leverage.
Nigeria’s continuous urbanisation necessitates collaboration among government, policymakers, developers, and the community to execute strategies for affordable housing, which is crucial for economic growth, social cohesion, and overall well-being. Addressing these needs is essential for a future where affordable housing is a right for everyone.
Oluwabusuyi Adonis Fakanlu is a versatile professional, combining his talents as an author, entrepreneur, and architectural technologist with extensive experience in civil construction, building contracting, and real estate development.
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