Reminiscent of what some Second Republic state governments, particularly Lagos, did in the area of housing, the Enugu State government is now poised to spoil low-income earners and civil servants in the state with low-priced, mortgage-backed housing.
Authorities of the state say they have concluded plans to build about 1,500 housing units for low- and middle-income earners before the end of this year, disclosing that construction work has started at the Coal City View Estate at Ugwuonyema for the construction of the first phase of 100 housing units comprising one-bedroom, two- and three-bedroom apartments.
The state is also prepared to build 500 units of affordable houses in Nsukka, the university town, while another site had been cleared opposite Enugu State University of Science and Technology (ESUTH) for the construction of 250 units.
To actualize the projects, the state has secured approval for N1.8 billion facility from Family Home Funds (FHF), according to Chiemelie Agu, general manager, Enugu State Housing Development Corporation (ENSHDC).
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Analysts are of the view that if this initiative is sustained and it is replicated in other states of the federation, especially those with large urban population, the estimated 22 million housing units deficit in the country, which is an urban problem, will be bridged sooner than expected.
Agu disclosed that the government’s intention at the Coal City View Estate was to provide 750 housing units, assuring that it would be completed before the end of the present administration in the state.
“You know, because of the income level of civil servants, if you don’t give them a helping hand, they will not be able to build houses during their career. We agreed to provide an elongated payment plan through mortgage so that they can pay back mortgage loans within 20 or 25 years, depending on their profiling,” he explained.
The general manager assured that “accommodation for this class of people will be a thing of the past in the next six months”.
“That is my promise. We are developing houses that are affordable,” he said.
The general manager explained that the intention of the government was to deduct a percentage of the salary of benefitting civil servants monthly to offset cost of building, stressing that it was diligence and commitment of the state government that helped it secure the loan facility.
He said sensitisation had commenced with leaders of various labour unions and workers’ cooperatives to enable them to understand the government’s intention and key into the initiative.
He recalled that the state government had built 10 estates including WTC Estate, Citadel, Rangers Estate, Valley Estate, Heritage Estate, among others, all for the rich.
“At WTC, we sold for N10 million and after two years, it is N75 million. The same goes for Citadel. We sold for N20 million and today it is N60 million and so many other places. We have done well in this area but the attention now is on the low-income earners,” he said.
On why cost of housing has continued to increase beyond the reach of average Nigerians, Agu said it had to do with cost of building materials such as cement, iron rods, among others.
“It is an issue to be addressed by the Federal Government. Government should begin by giving duty waivers, tax rebate to producers or importers of essential building materials because when these items are cheap, you can now have affordable housing. When it is high, house prices are bound to be high because you cannot tell a developer to build and sell at a lower rate,” he said.
