The formal housing supply, estimated at about 100,000 units per year, is far-fetched from demand nearing one million units per year. The deficit is estimated to range between 20million and 30 million in 2014.
In the report, the World Bank highlights affordability as a huge challenge since the formal housing market does not serve low-income households and public housing projects over the last 30 years.
The Nigeria Mortgage Refinancing Company (NMRC) refinanced 1045 mortgages to the tune of N18 billion between 2015 and 2018, according to a BusinessDay report in the first quarter of 2019. The company’s mandate is to promote affordable home ownership in the country by leveraging funding from the capital market to deepen liquidity in the primary and secondary mortgage markets. Yet, the evidence of this is still scarce in areas of need such as Agege, Ajegunle, Okokomaiko, Amukoko, Badia, Bariga, Bodija, Ijeshatedo, Ilaje, Iwaya, Makoko and among others.
Addressing why housing development capital tend to ignore the type of housing needed by below-minimum wage earners, some real estate stakeholders who spoke to Businessday came to a consensus that affordable housing does not have to do with cost alone. They say it has to do with the ability of those low income earners to afford it. They believe those who earn on the lowest cadre still can afford a house given a mortgage system that makes the house affordable.
Equally, concerns were raised over questions of the cost of land not coming cheap and how that translates into meeting the requirement of poor people?
Rotimi Akindipe, the chief executive officer, Groveworld Realties Limited, a real estate company, emphasised the essence of government’s input in planning neighbourhoods, saying its not just about the quality of housing but also about the quality of neighbourhoods and beautiful ambience that can support living.
“There is something you call urban renewal which is a concept of development too. There is nothing wrong in bringing good roads to Badia; bringing pipe-borne water to Badia, having play areas in Badia; having good schools and good hospitals in Badia. If we have all these things, Badia will not be the same we are talking about,” Akindipe said.
The World Bank believes cities can play a key role in promoting inclusive growth by facilitating productivity as well as efficient service delivery for all citizens.
TEMITAYO AYETOTO
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