Addressing housing affordability among low-income earners requires collaborative efforts—Adebayo

FESTUS ADEBAYO, a Barrister at Law, is the Convener/CEO of Africa International Housing Show, the largest housing exhibition and conferences platform in Nigeria which brings together housing sector stakeholders from across Africa on annual basis. In this interview with CHUKA UROKO, he speaks on the Housing Show and its advocacy efforts on affordable housing in Nigeria. He also speaks on other salient real estate and housing issues. Excerpts:

The Africa International Housing Show (AIHS) is in its 18th edition, meaning that it has come a long way. Tell us, in specific terms, what difference this year’s edition seeks to make.

The 18th Africa International Housing Show is distinguished by several key factors. This year’s edition benefits from a strong collaboration with the Federal Ministry of Housing and Urban Development, a newly established standalone ministry that emerged through dedicated advocacy efforts. Another unique aspect is the participation of a United Kingdom delegation through the UK Department of Trade and Investment. Their involvement will enhance investment, trade development, and skill-building initiatives in Nigeria, which will add an international dimension to the show.

The theme for this year, “Financing the Housing We Need,” is part of what makes the show unique. The theme includes important sub-themes such as addressing the housing gap, promoting resilience and sustainability, and ensuring accountability in housing development. We’ll also examine the operational activities of key institutions like the Family Homes Fund and the Federal Mortgage Bank of Nigeria, focusing on how we can innovate their products to better serve low-income earners as regards affordable housing.

What sets this year’s forum apart is not only its theme but also the widespread acceptance of its goals among diverse stakeholders. We have support from leading brands such as Dangote Cement, the African Union for Housing Finance, Shelter Afrique, GMH Luxury, Cosgrove, Boing Luxury, Brains & Hammer, Constrix among others. Also, professional bodies in the housing industry are actively backing this edition.

This year’s event will feature over 21 countries with more than 500 exhibitors and 31 international speakers. We also anticipate the signing of MoUs with foreign exhibitors to boost investment and enhance local production in Nigeria. In addition, this 18th edition will provide a platform for young people in the sector through its Under 40 Initiative. Recognizing that the youth are integral to growth, the AIHS aims to empower the next generation of leaders and innovators. By fostering their involvement, the forum seeks to harness fresh ideas and perspectives essential for advancing Africa’s efforts at addressing housing challenges.

It is also worthy of note that the first day, the UK delegation will host a dinner for leaders in Nigeria’s housing sector, and on the fourth day, July 25, we will hold a special dinner to recognize those who have distinguished themselves in the housing sector. All these elements combine to make this edition a pivotal moment for advancing housing solutions in Africa.

This year’s edition has as theme, ‘Financing the Housing We Need’ which appears simplistic, yet emphatic and poignant. Why finance, and not land or title documentation?

This theme focuses on financing due to the urgent necessity to address Africa’s housing deficit, particularly as the continent’s population is projected to reach approximately 2.5 billion by 2050, according to United Nations estimates. This rapid population growth increases the demand for affordable and sustainable housing solutions. By focusing on financing, the AIHS aims to explore innovative funding strategies to facilitate the development of adequate housing for the growing population.

With rising interest rates, achieving mortgage-friendly financing for first-time homeowners, especially for low-income earners, becomes increasingly critical. This year, the AIHS will play a prominent role in this effort by providing a platform for stakeholders to promote flexible mortgage products, such as those offering lower initial deposits or adjustable-rate options. These innovations can make homeownership more accessible. The AIHS will facilitate discussions about enhancing government support, such as subsidies or guarantees, which can help make mortgages more affordable for first-time buyers.

By bringing together financial institutions, developers, and policymakers, AIHS will foster collaboration to create innovative financing solutions, including shared equity programmes and community lending initiatives. This theme also recognizes the importance of financial literacy among potential homeowners. Participants will be empowered to make informed decisions about their mortgage options. By prioritizing financing, the AIHS seeks to mobilize investments from both the public and private sectors, fostering partnerships that lead to impactful and sustainable housing initiatives.

Nigeria is in a housing crisis due to the unaffordability of what its market offers. AIHS has been a great advocate for affordable housing. Now, tell us; what still needs to be done to get this behind us?

Addressing the issue of housing affordability among low-income earners in the continent requires open discussions and collaborative efforts and that is why the Africa International Housing Show has been facilitating these conversations, by providing a platform for stakeholders to come together and share insights.

By fostering dialogue among government officials, private sector leaders, and civil society organizations, the AIHS encourages innovative solutions and collective action to tackle the affordability crisis.

Also, Public-private partnerships are essential in bridging the housing affordability gap. By collaborating with private developers, we can create affordable housing units that meet the needs of low-income earners. Incentives such as tax breaks and subsidies can encourage private investment in these projects, making it feasible to deliver quality housing at lower costs.

Exploring innovative financing solutions is another vital aspect of pushing affordability. Options like mortgage programmes can provide low-income individuals with the necessary funding to secure housing. By making mortgages more attainable through favourable terms and conditions, we can empower the masses and facilitate homeownership. This year, the Africa International Housing Show is examining the operational activities of institutions like the Family Homes Funds, Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinance Company, and the Federal Housing Authority.

By making strategic inputs on how to revolutionize the products of these establishments, we aim to re-imagine housing financing for low-income earners. Additionally, the AIHS will prioritize financial literacy, offering workshops and resources to educate individuals on managing finances and understanding mortgage options to help them attain homeownership.

Handshake across sectors, that is, the public and private, has been identified as an enabler for driving successful housing initiatives. How much of this do you leverage in staging this Show?

The importance of collaboration cannot be overstated and it has been a key takeaway from this show. Effective partnerships between the government, private sector stakeholders, and civil society organizations are necessary for driving successful housing initiatives.

This realization has led to more inclusive policies that involve various stakeholders in the planning and implementation processes. Even though it is still a work in progress, we believe that by continuing to foster these collaborations, we will achieve meaningful and lasting improvements in the housing sector.

Over the years, the Africa International Housing Show has established itself as a platform for brands in the housing sector to exhibit and sell their products and services. This exposure not only promotes innovation but also facilitates networking and collaboration among industry players. By providing a space for brands to showcase their offerings, we enhance the visibility of emerging solutions and technologies, driving the sector forward.