ADDRESSING THE CRISIS OF HOME OWNERSHIP - THISDAYLIVE
In December 2013, the United Nations General Assembly designated October 31 as World Cities Day to focus global attention on urbanisation and sustainable development. The 2026 theme being marked across the world, ‘Regenerating the City: Adequate Housing for All’, should resonate in a country with a massive housing deficit of roughly 14.9 million units, alongside over 15 million structurally inadequate homes. The challenge is compounded by high construction costs, low mortgage access, and rapid urbanisation. But the plan by the federal government to increase mortgage disbursements through the Federal Mortgage Bank of Nigeria (FMBN) to 5,000 annually by 2028, is in the right direction.
Apparently in response to the housing challenge, the federal government recently unveiled a non-interest housing finance scheme designed to expand homeownership opportunities for millions of low-income earners across the country. But the devil is in the details. We hope it is not another political gambit. “We are not here to add one more product to a shelf. We are here to open another door, so that no Nigerian has to choose between the desire to own a home and deeply held financial or ethical convictions,” said the Minister of Housing and Urban Development, Muttaqha Rabe Darma, who expressed concern that despite having more than six million contributors to the National Housing Fund, fewer than 500 individual mortgages are usually processed annually.
Created under the National Development Plan in 1973, the Federal Housing Authority (FHA) is essentially mandated to coordinate, drive, and execute government housing agenda to the low, medium, and high-income groups. Over the years, FHA has been able to deliver thousands of housing units across the nation, despite obvious challenges. However, what is worrying is that many of its old estates are not only in bad shape, but they are also ill-kept and ill-maintained. Many are increasingly falling into slums. The issue is not only about standards but poor conception, as well as the manner in which the houses were allocated in the past and whether the current approach could not be different.
As part of the efforts to deepen access to affordable housing across the country, the FHA said earlier this year that it has secured prime land in 28 states. “We have also commenced the process of construction in some of the states, having procured the contracts,” said FHA Executive Director, Estate Services, Ezekiel Etuk, at the groundbreaking ceremony for the FHA Green City Estate in Abuja. He said the FHA Estate, Bwari, Abuja, would be commissioned at the end of this year.
We have always advocated the empowerment of both the FMBN and the Nigeria Mortgage Refinance Company (NMRC) for the task of providing affordable housing to Nigerians. There are already existing examples to draw from. At the industry level, there are houses built and owned by private people and companies. These constitute the housing stock and determine the supply and demand of housing in an open market. But they are very expensive with short-term mortgages being financed by banks. This is an area the FHA should work on with other stakeholders if it is to fulfill its mandate.
Labour impact assessment studies in countries with similar demographics and economies as Nigeria estimate that no fewer than five direct jobs can be generated with every new home, and two indirect jobs in housing-related expenditure. Developments in Nigeria contrast with some other climes where public housing contributes largely to social engineering. Beyond the job prospects, public housing in the country accounts for less than 10 per cent as most depend on the informal sector for their housing needs. We must begin to change that narrative.
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