The Nation Newspaper

Tag: Housing

  • Stakeholders seek special intervention fund for housing

    Stakeholders seek special intervention fund for housing

    Worried by the estimated 17million housing deficit in the country; stakeholders, yesterday, called for a special intervention fund for housing as applicable in some other sectors of the economy; including agriculture, mining and education as well as the creative industry.

    They also called for the enactment of a bill by the National Assembly, next year, to engender affordable housing.

    These issues came up at the maiden Nigeria Housing Finance Conference, holding in Abuja, with the theme “Financing Affordable Housing: Realities, Necessities and Possibilities,” organised by the Nigeria Integrated Social Housing Cooperative Society Limited (NISH).

    Former Regional Director for Africa, UN-Habitat, Prof Oyebanji Oyeyinka, in a guest speech said the new urban agenda was in line with the Goal 11 of the Sustainable Development Goals (SDGs); addressing poverty.

    Oyeyinka stated that sustainable housing was closely tied to disease burden, noting that urban interventions in areas of housing, sanitation and water will help bring people out of poverty.

    He therefore, suggested the use of about 30 per cent of pension fund for affordable housing as done in many countries of the world.

    In his remarks, the conference convener, Yemi Adelakun identified six most critical challenges of affordable housing to include; land, technology, expert knowledge and skilled manpower; building materials, infrastructure and finance.

    He explained the need for housing intervention fund that will guarantee better access to housing finance at single digit interest rate.

    “This is the norm in countries that had achieved success in affordable housing. This was also a government policy 2006 and 2007 during the sale of government properties when mortgage was pegged at 7%. The agriculture sector and other sectors in Nigeria are currently benefitting from similar intervention policy.

    “The housing sector urgently requires similar intervention for maximum impact. For those in the informal sector and others who cannot qualify for mortgage, the rent to own option practiced in Lagos State should be explored further,” Adelakun stated.

    The occasion witnessed the official launch of the NISH Cooperative Society by the Head of Civil Service of the Federation (HOCSF), Mrs. Winifred Eyo-Ita.

    Represented by a Permanent Secretary in her office, Ayodele Folayan, the HOCSF assured of the readiness of the Federal Integrated Housing Scheme (FISH) to collaborate with NISH.

  • Nigeria housing finance conference for Abuja

    A two-day Nigeria Housing Finance Conference with the theme: ”Impact of Housing on National Economic Development” begins tomorrow in Abuja.

    According to Finance Africa, the organisers, the goals of the conference are to evaluate and deepen understanding of existing structures and policies in Nigeria housing finance.

    It will also showcase global best practices and success stories, generate ideas and recommend policy initiatives and action plans for a lasting solution to financing housing deficit in Nigeria especially for people in the low and medium income brackets.

    The conference is also designed to create networking and investment opportunities for housing stakeholders.

    Apart from creating networking and investment opportunities for housing stakeholders, the conference is also expected to provide linkages for investors, financiers, developers, manufacturers of building materials, infrastructure companies, estate managers, risks underwriters and off takers.

  • ‘Mortgage critical to realistic housing policy’

    ‘Mortgage critical to realistic housing policy’

    Nigeria’s mortgage system currently cannot support a housing policy that will deliver affordable houses to Nigerians. This was the submission of a speaker at the recently concluded 2017 National Built Environment Conference (NABECON), which held at the Ahmadu Bello University, Zaria, Kaduna State. The theme of the conference was Positioning the Construction Industry in Nigeria for National Economic Growth.

    While delivering his lecture titled Housing for all Nigerians: The Big Vision Test, at the conference, the Managing Partner, Costec Consultants, Mr. John Agele Alufohai, making reference to researches conducted by the Federal Mortgage Bank of Nigeria (FMBN), noted that high mortgage rates, which is usually given at short tenures; a difficult business environment, high inflation, and unstable policies, all combine to hampered the growth of the housing sector in the country. This, he further explained, is why there is an estimated deficit of 18 million housing units in the country. The research also revealed that the country needs to build 720, 000 housing units per annum at an annual cost of N56 trillion to bridge this gap.

    Explaining the link between what he called a “transformational” housing policy and the economy, Alufohai noted that a housing policy that works for all Nigerians – the rich, the poor, civil servants, small business people, artisans, informal sector workers and entrepreneurs, young graduates, young people with limited formal education, banks, construction companies etc. – will boost construction activities and make a significant contribution to economic development.

    He, therefore, suggested that the country should adopt the mortgage system of other countries that have delivered housing for both the rich and poor.

    “The most efficient focus of housing policy is for the government to assist millions of Nigerians obtain lower-interest mortgages; this is how most citizens are helped to acquire houses in many countries with successful housing policy such as Singapore, South Africa and Malaysia,”  Alufohai argued.

    Alufohai, a former president of the Nigeria Institute of Quantity Surveyors (NIQS) also noted that because a house is the single biggest investment for an overwhelming majority of people, an efficient mortgage system is critical to providing accommodation for most Nigerians. He revealed that less than three percent of Nigerians acquire their homes through mortgages, just as many others invest in building houses of different costs and quality without any help whatsoever from the government.

    He, therefore, proposed a modeling of Nigeria’s mortgage system after that of Singapore, whose citizens obtain 20 to 30-year low interest mortgages through a pool of funds into which all workers must contribute 20 percent of their salary to acquire houses

    Said he: “The clear solution to me is the Singapore model – creating a pool of funds into which everybody contributes monthly and from which everybody borrows to buy a flat or house. The Federal Government ‘tops up’ contributions into this remodeled National Housing Fund (NHF) with at least N10 billion every year and it’s perfectly alright if it spends every kobo on its intervention in housing on this”.

    Singapore, he further revealed, was once a once poor island in Southeast Asia, which evolved from a third to first world economy between 1965 (when it gained independence from the British) and 2000. Under Lee Kuan Yew, the country’s first Prime Minister, the government transformed huge swathes of urban sprawls and slums into well-planned cities that spurred economic dynamism and growth.

    He said although the country’s NHF attempted the Singapore model, but it failed. “One of the key reasons for the failure is contributors couldn’t access the loans because they couldn’t afford the deposit for the houses,” said Alufohai, adding that the NHF also failed because of the high interest rates charged on mortgage loans. He noted that a non-inflationary fiscal policy, flexible, sustainable exchange rates and hence, low interest rates are important to attaining a mortgage system that will also attract foreign investment into mortgage market.

    On the role of government in the remodeled system he said, “it could provide a subsidy on the interest on mortgage loans by investing or contributing funds into this pool of ‘forced savings’ – this would have been an excellent use of the petrol subsidy.”

    The chairman of the organising committee, Prof Ikem Mbamali, said the conference brought together scholars, industry professionals/practitioners and senior public service officials/administrators, exploring current developments and advances in the re-organisation of the construction industry for effective contribution to national economic growth.

  • Fed Govt to avoid housing mistakes, to award contract for 69 roads

    The Federal Government has said it is working hard to avoid mistakes committed in previous housing initiatives, just as it has concluded plans to award contract for reconstruction and rehabilitation of 69 highways nationwide.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola disclosed this at an interactive session with members of 21 Civil Society Organisations and the media in Lagos.

    Fashola explained that government was working on avoiding mistakes of previous housing projects that saw the houses abandoned. He explained that some houses constructed by some past administrations were not occupied because they did not take into cognisance the issues of culture of the people, climate and location of projects.

    “All across the country you will see houses but they are not occupied,” he said.

    He said that in 2016, the government took time to sample opinions of Nigerians across the country on what type of houses they wanted and how much they could pay, while state governors were approached for land at suitable locations to make the houses attractive for intending house owners.

    “At this moment we are constructing in 33 states, when we finish then we would subject that design to affordability test. When we find its works then we will subject it to acceptability test,” he said.

    “This is the first time that Nigeria is undertaking a national housing scheme after Alhaji Shehu Shagari’s housing scheme.

    “There has been other interventions, previous governments have been building houses but a national housing scheme, this is the second time. Shagari’s was the first.”

    In a  similar vein, he disclosed that 25 roads would receive attention soon as bid processes to deliver the Sukuk bond were almost completed.

    “Each zone of the country is getting N16.67 billion and they are going to those major arterial roads that take us from the ports to the Sahel. Since the Sukuk was agreed we had to follow due diligence,” he said.

    He said that with the dry season ahead, a lot of construction would be witnessed nationwide, adding that the 44 other roads captured during a nationwide tour of roads were also under procurement process.

    “If we complete the procurement we would award the contract to cover six zones of the country,” he said.

    The minster expressed hope that all the 69 roads to receive attention would become motorable within a short time.

    Fashola sought public support in the fight against illegal mining of sand on road edges and other forms of road abuses.

    He expressed worry over activities of illegal sand miners who dig up road verges (edges) to cause rapid road degeneration and collapse of federal highways.

    He said that it was unfortunate that some people took pleasure in “destroying our common assets” and appealed to members of the public to join in the surveillance.

    He said gadgets like cell phones could be used to get evidence of such acts to ensure perpetrators were brought to book, adding that there was a law against road abuses that needed enforcement.

    “We have set up a Right of Way (RoW) Recovery Committee and I know that it has started working.

    “We are trying to recover all the RoW that used to belong to the Federal Government across the country breaking them into zones.

    “It is a lot of work, but  there was no budget for it, so, all of the costs are being compiled and then we are hopeful that in 2018 we would be able to do something if we get the project approved.

    The minister explained that vegetation control was also ongoing as part of its RoW recovery plan.

    He added that the government was ready to hand over more roads to states governments who were willing to take them over.

    Speaking on the Ota-Abeokuta Road, he said that the project was going to be redefined because the road was not initially in the 2018 budget and the contractors made some additional claims.

    He said that the road would be stabilised before the end of the year.

    Some of the civil society groups include Centre for Democracy and Social Economic Rights, Alliance for Good Governance, Grassroot Democratic Initiative and Centre for Social Economic and Human Rights.

  • ‘Why housing for the poor remains elusive’

    ‘Why housing for the poor remains elusive’

    Bayo Akintoye an entrepreneur is Chief Executive, BULLNET Properties, a real estate development company. In this interview with Yetunde Oladeinde, he speaks on the challenges and opportunities inherent in the built and construction sub-sector. Excerpts:

    Interest in the real estate sector

    My expertise as a realtor has been very interesting because it’s one sector that offers you opportunity to learn every day. I have been in the sector for about 20 years. I worked with a couple of firms and was a pioneer staff of Broll Nigeria, which is one of the multinational estate services companies that we have in Nigeria today. I came in at Broll in 2004 as a pioneer staff. I had a wonderful experience and left in 2012 to start my own firm called BULLNET. It is an acronym for Bulletins and Enquiries Networking Services Limited. The ethos or the philosophy of our company is to provide information. In addition to providing consultancy, doing research, advisory services , real estate marketing services which includes sales, leasing and management of properties , project management and facility management. We have a full range services but our underpinning principle is providing real estate information. This is because information is key. A lot of people get into trouble, buy houses that are overly high priced because they do not have the right information across to the people.

    That is why we opened the boutique, our real estate boutique located at the Ikeja City Mall. It is easy for people to walk in and get any information required about real estate. We advise you, consult for you and provide whatever you need. For instance, if you are looking for a house to rest, buy a house or land. Our services are very transparent and we hinge our uniqueness and integrity.

    Real estate agent has been attributed to be fraudulent and always asking for prices that are cut-throat. But we are not; we want to change that perception that real estate agents can be transparent and work with integrity. They should always have at the back of their mind that they want to serve the client, not just make money. We work with our clients to pay what is convenient for them, not just for ourselves. We want you to know that you are paying and happy with what you are pay for. Most times, you find clients grumbling because they agent has not lived up to expectation.

    Challenges in the real estate subsectors

    There are so many challenges and this are some of the things our journal, Bulletin Homeowners quarterly is trying to address. Of course, the most important challenges are perception, that we practitioners, agents and middlemen are not trustworthy. We are doing everything to change this and I believe that integrity is the key thing here. Another challenge is that it is usually difficult to find a match. Sometimes, you have a property and you are looking for the buyer or tenant. Then you also have scenarios where you have a tenant and you are looking for the right property. That matching ability is the only grill of our business. If you have that secret, you would be closing deals on a daily basis.

    In Nigeria, we also lack back up data, unlike what you have overseas, where there is enough data available, for you to use the public domain. But here, everybody is hoarding data. If for instance, I ask an agent how much he sold that property, he is not going to tell me. Probably, he will give me a wrong figure and you discover that there is always secrecy and no data in the industry. When this happens, what you are operating is a black market and that is what we have been facing and we are trying to change it. It is important to allow people to access and filter the data for what they want.

    Providing houses for the poor

    For us at BULLNET, another area that we pride ourselves is being innovative. We have innovative ideas, innovative proposals and innovative concepts. So we are constantly always thinking outside the box and forward thinking. We actually think that there are new ways; the common man can get access to home. Homelessness is very high in Nigeria. People live under the bridges because they just don’t have a shelter over their heads. Sadly, this is one of the key basic necessities of life. The government is trying but it is not enough for them.

     

  • 2,000 housing units underway in PH Airport City

    The Greater Port Harcourt City Development Authority (GPHCDA) has signed a Public-Private Partnership (PPP) agreement with Masta Services Company Limited to construct 2,000 residential houses in the proposed PH Airport City.

    The project, which will be delivered in phases of 500 units each, will comprise detached duplex, four-bedroom duplex and terraced houses of one, two and three-bedroom apartments. It will be located on 85 hectares of land delineated for this purpose.

    The Airport City is planned to be fully self-reliant in power, water and waste management, and will be serviced with schools, medical facility, fire service station,  police posts and other security systems. It will have asphalt roads with sufficient provision for greens and recreation parks. The city will be located near the Port Harcourt International Airport and within the Phase 1A Area of the Greater Port Harcourt Development Area, which covers 2,500 hectares.

    At the signing,  its Administrator, Ambassador Desmond Akawor, said the project was in tune with Governor Nyesom  Wike-led administration’s desire to provide quality, but affordable housing for the citizens in line with the United Nations Habitat Agency Charter.  He promised that the authority would provide an enabling environment for the delivery of the project within its time frame.

    GPHCDA’s Committee on Investments Chairman Mr. Emma Wike ,who represented the Board Chairman, Chief Ferdinand Alabraba, assured the investor that contrary to perceptions of insecurity about the state, the PH Airport City is a safe haven for investment.  He lauded Masta Services for its confidence in the vision of the  government, urging others to leverage the opportunities for investment in the state.

    According to GPHCDA’s Director of Communications and Marketing Adebayo Adeoshun, the deal is aimed at boosting the provision of affordable housing stock in Port Harcourt.

    Masta Services Company Limited Managing Director/Chief Executive Officer Ugo Ohuabunwa assured that every segment of the state and the host community had been factored into the project as it would accommodate both the high and low-income earners. He said the project would create over 3,000 jobs.

  • LASG, NMRC, others sign MoU for 20,000 housing units

    LASG, NMRC, others sign MoU for 20,000 housing units

    The efforts of the Lagos State government and other stakeholders in the built environment to tackle housing deficit, frontally, received a boost on Monday.

    This is coming on the heels of the signing of a Memorandum of Understanding among the Lagos State Government, the Nigeria Mortgage Refinance Company (NMRC) and a consortium of developers to build and deliver 20,000 housing units in Lagos.

    The MoU, signed by the parties, is in line with the Lagos Affordable Public Housing (L.A.P.H.) initiative of the Governor Akinwunmi Ambode-led administration, geared towards building 20,000 housing units through a joint venture initiative (JVI).

    At the signing at the state’s Ministry of Housing Secretariat, Alausa, Lagos, the Commissioner for Housing, Mr. Gbolahan Lawal, said that the ministry and the developers had initiated an arrangement with Primary Mortgage Institutions (PMI) and NMRC to facilitate the creation of mortgages for subscribers to the housing units under the LAPH initiative.

    This is because of  the prevailing economic downturn in the country which, he said, has affected the finances of most citizens and their ability to fund the purchase of a home,

    “The state government is a subscriber to NMRC by virtue of the registration of our Lagos Building Investment Corporation (LBIC) with the company and is therefore qualified to benefit from the mortgage loan refinancing roles of NMRC. The refinancing agreement will assist the supply side as well as the demand side of the value chain as it will set in motion a revolving pool of funds for mortgage origination which will assist developers and provide them access to construction finance and help scale up housing delivery,” he said.

    Gbolahan added that the LAPH home ownership initiative and the collaboration were an opportunity for the state and its residents to leverage the benefits under NMRC.

    Lawal said the refinancing agreement would also avail citizens of the affordability and accessibility the NMRC provides through the refinancing of long-term mortgages, thereby unlocking its multiplier effects on the state’s strong economy, including jobs and wealth creation.

    “Examples of the efforts include the effective re-positioning of housing provision institutions in the state and the successful implementation of the Rent-To-Own scheme which has driven the growth of the sector and enabled many Lagosians realise their dreams of affordable home ownership,” he added.

    He said the MoU would trigger a scheme that could be tagged: “Home Ownership Made Easy.”

    “I make bold to say that by this singular step, Lagos State under the administration of Governor Akinwunmi Ambode has taken another giant step towards making housing readily available and accessible for the citizens of Lagos State,” he said.

    NMRC Managing Director Prof. Charles Inyangete described the MoU as a watershed that would lead to housing revolution in Lagos State. He praised Ambode for driving the initiative through the Ministry of Housing, saying the MoU would lead to the delivery of affordable houses through the mortgage system.

    The Chairman, Brain and Hammers, Mr. Adebola Sheidu, whose firm is one of the consortium of developers, said the signing of the MoU was a major breakthrough in the housing sector. He explained that most developers had been constrained by “exit strategy” after building a house, that is, how to recoup their investment after developing mass houses.

    He said with NMRC on this initiative, mortgage would be more accessible to more Nigerians, and  developers would be able to build more houses. Sheidu noted that the more developers build, the more jobs will be created.

    “For every house built, there are seven semi-skilled workers and minimum three labourers working there. So look at the multiplier effect of this on job creation. This is aside that more Nigerians will be able to own their home at an affordable rate,” Sheidu said.

  • Indimi Foundation builds N600m housing estate for IDPs

    Relief is on the horizon for internally displaced persons in Maiduguri, Borno State as the Muhammadu Indimi Foundation, a humanitarian organisation founded by the Executive Chairman of Oriental Energy Resources Limited, Alhaji Muhammadu Indimi, is to build a N600 million solar-powered village of 100 units of 3-room houses for those displaced by Boko Haram in the state.

    The project is located in Bama, one of the worst-hit communities in Maiduguri.

    Other features include five blocks of classrooms, a fully-equipped health centre, an open-shed market,  to revive trading among the inhabitants, sport facilities for children and an incinerator.

    At the flag-off of construction works, Idimi said: “Following the trauma the people have been through, we will spare no resource to restore hope, healing, and lay a lasting foundation for growth. It is a well-known fact that our greatest strength as a country lies in our people and our resilience in the face of numerous day-to-day challenges. Through our modest activities and initiatives, we hope to contribute to the alleviation of poverty in our communities and unlock Northern Nigeria’s potential. The Muhammadu Indimi Village Bama is one of the many steps we have taken in contributing to building better lives for our people.”

    He also revealed that the foundation planned to replicate the 100-unit “Idimi Village” in Ngala Local Government Area, another community where thousands of families fled their homes and lost their means of livelihood.

    He thanked Governor Kashim Shettima for his support for the project, especially for donating the land in Bama and Ngala.

    Shettima praised the donor for his gesture, describing him as “an inspiring model of impeccable business integrity and unbounded humanitarian activities, who has continued to identify with our values, challenges and predicament.

    “We want to thank Alhaji  Indimi for his generosity of spirit and for fiercely identifying with his people. I wish to unequivocally commend this magnanimous undertaking and commitment of the Muhammadu Indimi Foundation. We deeply appreciate the humanitarian gesture of the chairman, in the resettlement of IDPs in Borno State. Alhaji  Indimi is a renowned and worthy son of Borno, indeed one of the greatest,” the governor said.

    The Muhammadu Indimi Village is due for completion in December. The focus of the Foundation is purposeful and proactive investments in education, food, shelter, crisis relief, rehabilitation and empowerment. Since inception, thousands of internally displaced persons (IDPs) and families have benefitted from these initiatives.

  • Group to partner govts on housing

    The Society of Real Estate Developers of Nigeria (SOREDON) is ready to partner the federal and state governments to address the 17 million housing deficit in the country.

    According to its Chairman, Mr. Michael Adedeji, to solve the problem, experts and financial competence, the forte of SOREDON, because of its ability to raise offshore funding to tackle housing deficit, are needed.

    “We can’t just blame the governments for the housing deficit in Nigeria because there are people who should tackle this challenge. If we are providing one million housing every year, maybe it should have been addressed all these years. Together with our foreign partners, we have earmarked $5million for take-off.  We are capable of providing 500, 000 housing units annually and we also guarantee high quality houses,” Adedeji said.

  • Vine realtors announce sales of Victoria Crest lll

    Vine realtors announce sales of Victoria Crest lll

    Vine Realtors on Thursday announced the sales of its VICTORIA CREST III, a contemporary apartment located in Victoria Crest 2, Lekki in Lagos State.

    According to the Realtors, a real estate and property website in Nigeria with property listings for sale, rent and lease, the apartment made up of 3 bedrooms and 4 bedrooms were built this year and are located in Lagos state.

    Victoria Crest III is a high-quality contemporary specification that includes, among other home necessities, built to finish 3 bedroom terrace duplexes, all rooms ensuite, fitted wardrobe and cabinets.

    Other features included stainless steel staircases and balconies, Turkey security doors, Quality Tile finishing, Gatehouse, Street lights, Central water treatment plant, Ample parking space and much more.

    The Real estate agents noted that the apartments are “contemporary 3 and 4 bedroom affordable terraces with and without BQ where intelligent design meets aesthetics to create the perfect backdrop for the modern lifestyle.

    “The introductory price for the 4 Bedroom apartments goes for N36million with a BQ while the ones without BQ goes for N32.75million.