The Nation Newspaper

Tag: Housing

  • How to bridge housing gap, by don

    How to bridge housing gap, by don

    THE availability of affordable land will help in addressing the country’s housing shortfall and mitigate the proliferation of slums, a Professor of Urban and Regional Planning, Mohammed Asimiyu Junaid, has said.

    Delivering the 51st inaugural lecture of the Federal University of Technology, Minna (FUTMINNA) in Niger State, with the theme: Housing for the Nigerian poor: A reality or a mirage, he said the National Housing Policy needed to be reviewed for efficient implementation.

    Junaid added that the government’s political will was required to ensure allocations for estate development go to competent developers who can help in achieving the national policy for urban development.

    At the event, which held at Caverton Lecture Hall on Gidan Kwano campus of the school, the don said: “There should be well-developed mortgage institutions to assist developers to obtain loans at low interest rates. The government should also ensure even distribution of resources between rural and urban areas to discourage rural-urban migration and to decongest our cities. The need for functional building designs and very durable materials for mass urban housing provision cannot be overemphasised.”

    Junaid maintained that the government’s aim to provide mass housing for the poor was achievable, adding that feasible financial policies were needed to increase access to materials. He said the government should promote the use of eco-friendly construction materials and energy-efficient technologies.

    He said: “In some emerging economies, housing experts and policy analysts were hired to devise ways of overcoming housing challenges, knowing how significant housing is to a nation’s GDP. Countries, such as India, Mexico, Jamaica, Malaysia, Brazil and Thailan, are good studies for Nigeria to learn from.

    “These countries have deployed strategies and models ranging from Home Loans Guarantee, Mortgage Insurance, Liquidity Facilities, Pass-Through Mortgage Backed Securities, Tax Credit for Low Income Housing, Seed Capital, and Hedging of foreign long-term debts for private market operators. While not recommending a direct transfer of these models, a critical look at them in relation to our internal environment will help a great deal.”

    He advised the government to grant import duty wavers on foreign building materials and also offer tax relief to private developers interested in public-private partnership for delivery of low-income housing scheme to poor workers, noting that the PPP agreement would assist in the provision of basic amenities and social infrastructure in the towns and cities.

    According to the inaugural lecturer, the problems of housing shortage, urbanisation, overcrowding, unemployment, and other urban challenges can be solved if low–cost housing schemes are revived.

    In his remark, the Vice-Chancellor, Prof Musbau Akanji, hailed the “wonderful presentation” by  Junaid, describing the lecture’s topic as “apt and timely”.

    He said: “The lecture addresses the shortfall in mass housing scheme for poor Nigerians deserves an irrevocable commitment on the part of the government, estate developers and other stakeholders.”

  • Federal Govt mulls raising capital for housing

    The Federal Government plans to raise debt and equity capital from the investing public to support the realisation of the national agenda on mass and affordable housing.

    Minister of Power, Works and Housing, Mr. Babatunde Fashola, yesterday at a Real Estate Investment Trust (REIT) conference at the Nigerian Stock Exchange (NSE), said the government would raise additional funds from the private sector through the Nigerian stock market to complement ongoing financing through budgetary provisions.

    He outlined that the proposed capital raisings could combine several instruments including equity and debt instruments as well as hybrid capital issues.

    “In the medium term, we intend to raise more capital outside direct government treasury, working with the Federal Ministry of Finance, through Infrastructure bonds, REITS and other forms of real estate financing instruments, leveraging as most appropriate the platform of the Nigerian Stock Exchange,” Fashola said.

    He added that other funding sources such as pension funds, private equity funds, and the National Housing Fund managed by the Federal Mortgage Bank to finance development and also acquisition will be under consideration for the new capital issues.

    Fashola noted that the government had increase budgetary provision for housing by 1,900 per cent from N1.8 billion in 2015 to N35 billion in 2016, pointing out that government has already commenced construction works on its mass housing plan in the first quarter of 2017 in 33 states that have made land available across the country.

    He said with the momentum now gaining good traction, government intends to intensify its efforts and push harder with the 2017 budgetary allocation.

    He faulted the argument by some that government should get out of housing and leave it only to the private sector, noting that the proponents have however failed to show the proven capacity of the private sector on its own to meet the demand for housing and reduce the deficit considerably.

    According to him, the successful method across the world is for government to lead the way, first by policy, later by regulation and finally by empowerment and enablement.

    “Our programme will not be different. The policy framework for standardization of designs, use of local materials, and registration of developers has already started. These are governmental initiatives,” Fashola said.

    He said in the long term, the role of government will be purely regulatory, controlling designs, quality of finish, construction methods and materials, guaranteeing off-take of any house that private sector can deliver, and strengthening the Federal Mortgage Bank to provide finance to developers and end-users.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said that in spite of the challenging economic headwinds in Nigeria and other commodity based economics, the capital market remains one of the main vehicles to promote sustainable economic development and wealth creation.

    He noted that the conference was in line with the Exchange’s strategic initiative to promote and create the enabling environment for sustainable development of REITs in Nigeria and sub-Saharan Africa.

    According to him, in order to create a more transparent, liquid and accessible market structure in line with global best practices for REITs, the Exchange recently started the process of implementing some changes in terms of reporting and valuation of REITs and other collective investment schemes listed on the NSE.

  • Our scorecard, by housing commissioner

    Our scorecard, by housing commissioner

    How has the Lagos State Ministry of Housing fared in the last two years? It has done well, says Commissioner Gbolahan Lawal. MUYIWA LUCAS reports

    Last Monday, Lagos State Commissioner for Housing, Gbolahan Lawal, presented his mid-term scord.

    The event was the yearly ministerial briefing in Alausa, Ikeja. He said to boost supply, his ministry has prioritised the completion of its housing estates and entered into a deal with the private sector to do so.

    He said the government had introduced the Rent-to-Own and rental housing policies, to make housing affordable and accessible to the citizenry. The policies, Lawal said, are targeted at low and middle income earners.

     

    Rent-to-own Policy

    On Thursday, December 8, last year, he said, Ambode launched the Rent-To-Own and Rental housing Policies aimed at ensuring that  Lagosians irrespective of status, income and affiliations have access to decent shelter to improve their quality of life. Under the scheme, individuals are required to make a deposit of five per cent of the cost of the housing unit they wish to apply for as the commitment fee and the balance is spread over 10 years. This policy allows allottees to live in the property while paying towards ownership at a fixed rent over the 10 year period.

    To kickstart the scheme, the government dedicated a total of  5008 housing units in 12 housing estates spread across the state’s three Senatorial Districts. The Estates includes Sir Michael Otedola Estate, Odoragunshin, Epe,  336 units;  Chois City, Agbowa, 400 units; Alhaja Adetoun Mustapha Estate, Ojokoro, 32 units; Hon. Olaitan Mustapha Estate, Ojokoro, 48 units; Oba Adeboruwa Estate, Igbogbo- Ikorodu                256 units; Egan Igando Housing Estate, Alimosho, 684 units; Igando gardens, Igando Alimosho, 492 units; Igbogbo IIB Housing Estate, Igbogbo Ikorodu, 360units; Odo- Onosa/ Ayandelu,      660 units; Iponri Estate, Surulere, 132 units; Sangotedo Estate, Sangotedo, Eti- Osa, 1,188  units, and Ajara Estate, Badagry, 420 units. At present, about 500 Lagosians have benefited from this scheme.

    Lawal explained that the policy is not just about provision of shelter, it is also about economic stimulation and empowerment. “The new homes provided will require furniture and home gadgets such as electrical/ electronic appliances etc. The increase in demand for these items is expected to stimulate production and consequently economic growth,” he explained.

    The commissioner said the Rent-To-Own  programme is the cheapest and the easiest means of becoming a property owner in the state. Over 12,000 applications have been received, while 1,420 applicants from sectors, such as the public service; construction; banking and finance and informal sector have been pre-qualified.

    Lawal called for the support of the allottees, urging them to assume responsibility for the estates and its facilities. He admonished them to cooperate with the facilities managers appointed by Government in ensuring that the facilities are put to good use.

    “Efforts should be geared towards ensuring that the environments are kept clean always. The allottees are to ensure that they pay their rent as at when due and embrace maintenance culture. The Ministry has also taken over all abandoned Estates and working towards their completion so as to meet the need of the Rent-To-Own Policy,” he said.

    To ensure the sustainability of government housing estates, the Ministry has appointed facility managers for some of its estates while other estates are expected to have facility managers soon. This is to arrest deterioration of the estates.

     

    Rental housing policy

    This policy, Lawal said, allows the tenants to occupy government houses, paying monthly rents after an initial one month deposit. This policy is targeted at those with regular source of income who may be more interested in rental housing than home ownership. He said for this scheme, 20 per cent of the housing units dedicated to the Rent-to- Own policy were reserved for rental housing.

     

    Public-Private Partnership (

    The Commissioner said to ensure the sustenance of the Rent-To-Own scheme and meeting up with the high demand for housing units by Lagosians, the government, in partnership with private developers, is constructing 20,000 housing units in the next five years under the Lagos Affordable Public Housing (LAPH).

    Already, the government has approved joint venture partnership with six developers who have already mobilised to sites. The estates to be built under this partnership, will be christened “Jubilee Housing Estates” in commemoration of the 50th anniversary of the creation of the state. They are to be sited in the following locations: Ijora Badiya, Imota, Ayobo, Idale (Badagry), Ilamoye-Isolo , Abijo, Tolu (Ajegunle) , Abule Ado, Ikota, Ibeshe, Owutu and Igbogbo.

    Towards the completion of Ilubirin housing estate, approval has been granted for the remodelling of the estate from a hitherto purely residential complex into a mixed development of residential, commercial and leisure through public private partnership (PPP). The commissioner also said that $5 million would be injected into the Illubirin estate within five years.

    “Ilubirin is a work-and-play environment, and the capital to be injected as at the last time, is $5million in five years,” Lawal said.

    He is hopeful that more private developers would be granted approval soon to increase the number of JVs.

     

    The Master Craftsman Project

    In the country, the dearth of skilled workforce made up of masons, carpenters, steel fabricators, plumbers, electricians, painters, and joiners, tillers, has been a major contributor to the problems of housing delivery.

    Stakeholders are worried that the housing and construction industry is becoming more and more dependent on foreigners to fill the skill gap created since indigenous artisans are gradually aging and there are not sufficient new ones being trained to replace them.

    This realisation necessitated the Master Craftsman Project initiative of the present government. Through the Ministry of Housing, the state has been able to create a platform through which artisans and workers in the built environment are trained and re-trained to acquire modern skill and be certified.

    The initiative, Lawal said, is intended to redress the dearth of skilled workers in the building industry. The project is being undertaken in collaboration with relevant professional bodies such as the Nigerian Institute of Builders (NIOB) and Lagos State Technical and Vocational Education Board (LASTVEB).

    Under the programme, artisans were trained for six weeks at LASTVEB Technical  Centres in Ikotun, Ikorodu and Epe. They were trained on new approaches to do their job. Last year, the first set of craftsmen   were trained in masonry, furniture and carpentry, plumbing and pipe-works, electrical installations, painting and decorations. Their syllabus was based on the National Vocational Qualification Framework (NVQF) designed by National Board for Technical Education (NBTE) and Nigeria Institute of Building (NIOB).

    The Commissioner said the craftsmen at the end of the programme, were presented with their tools during the graduation  last month. One of them, Mr.  Murtala Kasali, praised the government for the project, saying that it is a platform to learn new ways of doing things.

    The commissioner said the craftsmen would be provided jobs in the various construction sites of the Ministry and also in maintenance works across the Ministry’s housing estates.

    In addition, a database of all certified Lagos State Master Craftsmen  has  been created for ease of reference for all Lagosians.

  • OPIC begins construction of housing units

    Ogun state Property and Investment Corporation (OPIC) has started the construction of the first phase of OPIC’s affordable housing units in New Makun City, Ogun state that would deliver 400 houses before the end of the year through technologically based building method under the NMRC mortgage scheme.

    Addressing pressmen on the commitments of his organisation at plotting the scheme in Ogun state, the Managing Director, OPIC, Mr. Babajide Odusolu said: “Despite the economic recession, we will have new development in New Makun City, Exclusive growth, Exclusive development. This new development no doubt will align with the approved master plan of the City which zones, integrates exiting system, operations, communities and indeed everything.”

    The OPIC boss noted that the Corporation had mobilised competent contractors, private developers and accredited mortgage banks for successful accomplishment of the NMRC/OPIC mortgage scheme in the state, for speedy completion of the first phase of the project.

    “These institution have come to terms with OPIC to make housing affordable through highly subsidised mortgages by the government, enabling the general populace to explore the single digit interest mortgage loans spread over a long period  of time, in line with the OPIC/NMRC Family Homes Funds (FHF) mortgage plans,” said Odusolu.

  • Firm to tackle housing challenge

    Firm to tackle housing challenge

    Determined to join the battle to reduce the housing deficit in the country, a Lagos real estate company, Cross and Churchill Estates Limited, has launched a triple assault on the problem. It has three estates of 50-unit apartments at Lekki Peninsula on the Victoria Island-Ibeju Lekki corridor.

    The projects are the Orangeville Residences (Berkshire Apartments), which phase one has been completed, Shepherd Apartments, also finished, and Fort Alexander.

    Berkshire Apartments consist of 24 units of standard and affordable two- and three-bedroom apartments. Shepherd’s Apartments II have 16 units of three-bedroom apartments, and the Fort Alexander boasts of a 10-unit apartments.

    The Berkshire Apartments and Shepherds Apartments are to be inaugurated next month.

    Berkshire Apartments are located at Okun-Ajah (on Okun-Ajah- Coastal Road), Eti-Osa Local Government Area, while Shepherd Apartments are sited after Adiva plains/Beechwood Estates, Lakowe Lake Resorts and Mayfair Gardens.

    The estates feature stand-by generator, water treatment plant, paved floor, drains and walkways, parking space for two cars per apartment, security post and CCTV system. This is why its promoters have labelled the estate as “a haven of affordable luxury.” Besides, its location of just about five minutes before Amen Estates and about eight minutes before the junction of the proposed Lagos Airport, makes it investors’ delight.

    Its Managing Director, Mr. Taiwo Ogunbodede, said his firm has built a sterling portfolio of properties by creating value at vintage locations and distinctive communities. He explained that while his team specialises in building highly desirable developments and structured transactions, it takes the greatest pleasure in creating beautiful communities that enrich lives, relationship that lasts and, above all, building trust. This mission, he further said, is why Cross and Churchill ensures it understands the needs of its clients and works diligently to achieve the results they desire. Hence, the firm has, over the years, developed the knack for creative and out-of-the-box solutions to housing requirements.

    “Orangeville Premium Apartments adorns one of the most prestigious areas of Lagos and Nigeria – “The Lekki – Peninsula”.  Coupled with the humongous opportunities that abound in this vicinity, the Lekki-Peninsula has created massive residential and commercial real estate opportunities, making it a magnetic hub. The Berkshire Apartments is a chic edifice spreading across three floors which blends modern attitude with traditional delight to create contemporary living with high specification facilities.  Our bespoke living room/dining room, which was crafted with your extra coziness in mind,” Ogunbodede said, adding that the Shepherd’s Apartment II is a masterfully crafted luxurious home offering  a blend of modern attitude with traditional neighbourhood comforts and brings a new meaning to urban living.

    Cross and Churchill has also ensured that the apartments fits into people’s pockets in terms of affordability by reducing the commitment fees to as little as 10 per cent. “We reduced it to make entry level easy. We also offer our customers, the best in price in terms of finishing,” he said.

  • ‘FMBN, REDAN, Shelter Afrique to create $2b affordable housing fund’

    ‘FMBN, REDAN, Shelter Afrique to create $2b affordable housing fund’

    Some stakeholders have agreed to pool resources to tackle the housing problem headlong. This is by ensuring  improved access to credit facility and reducing development costs for low-income housing.

    The Federal Mortgage Bank of Nigeria (FMBN), Real Estate Developers Association of Nigeria (REDAN) and a pan-African finance institution, Shelter Afrique have joined forces to create a $2 billion affordable housing fund.

    The money, will be disbursed at $200 million yearly to developers, to help in financing the construction of a targeted 10,000 homes over the next decade.

    Activities to be generated from the construction works are expected to  create more than 150,000 jobs.

    “We agreed that we needed to bring in Shelter Afrique to work in partnership with REDAN to make available some funds over the next 10 years by providing REDAN members with the necessary construction finance that is required to drive the national housing model,” the Acting Managing Director of FMBN, Richard Esri, explained.

    Recently, the Federal Government announced it would waive an initial 10 per cent payment on mortgages below N5 million or $15,700, being administered by the FMBN. This is targeted at future homeowners planning to take out mortgages in the low-to-mid price range. According to the Centre for Affordable Housing in Africa, the average cost of a mortgage is $18,000, with interest rates at around 19 per cent as of last September. This move comes on the heels of the establishment of the Family Homes Fund by the government, last September.

    Aside from helping to develop more houses, the injection of the $2 billion fund is to keep mortgage rates in affordable housing schemes at well under the average 23 per cent, with a target of 9.99 per cent and payable over 20 years. Under this arrangement, prospective buyers are required to make an initial deposit of 10 per cent of the house value to qualify for these home loans; 70 per cent of the mortgages are expected to go to houses priced between N2.5m ($7, 900) and N4.5m ($20,000).

    Financed through the Sovereign Wealth Fund, Federal Government bonds and Bank of New York, the scheme will work as a public-private partnership (PPP). It is also expected to promote the development of primary mortgage institutions, which tend to have a narrow banking licence and are generally reliant on wholesale funding, making them more vulnerable in times of financial or economic crisis.

    These changes will come as welcome news to many Nigerians, with half of the population living on less than $1 a day. Furthermore, the minimum wage is currently around $60 per month, meaning home ownership is often out of reach for those in the low- to middle-income wage bracket.

    The Centre for Affordable Home Financing in Africa reports that a standard mid-level apartment in an urban area in the country can cost as much as $100,000, with rent averaging around $5, 000 a year; the situation has kept home-ownership rate at 25 per cent.

    Meanwhile, the mortgage penetration rate stands at about 0.6 per cent of gross domestic product (GDP).  The World Bank data which although is low by standards in more developed economies, puts Nigeria roughly in line with many other large African markets. The report also attributed low mortgage uptake to lack of awareness and cost, as high interest rates can make mortgages too expensive for middle-and low-income earners.

    According to the Oxford Business Group, a global research and consultancy company with a presence in over 35 countries, including the Middle East, Africa and Asia to the Americas, in order to begin filling Nigeria’s existing deficit of 17 million housing units as projected by the World Bank and to meet the increase in demand, the government will need to support the construction of 170,000 units per year over the next decade. With almost half of the country’s 170 million population residing in cities and urbanisation growing at an annual rate of 3.75 per cent, demand for affordable houses is also set to remain strong.

  • FMBN spends N1.4b on housing units in Niger

    The Federal Mortgage Bank of Nigeria (FMBN) has spent N1.4 billion on 379 housing units in Niger State.

    The Minister of State for Power, Works and Housing, Alhaji Mustapha Baba Shehuri, who stated this at the opening of the Federal Mortgage Bank of Nigeria and Sea Mountain 133 Housing Estate in Minna, Niger State, said with the need for 720, 000 housing units per annum, the annual aggregate production of 100 housing units was not tenable to meet the huge gap of housing in the nation.

    “The Ministry of Power, Works and Housing will continue to strive to ensure that the challenges of housing deficit in Nigeria which has been put at 16 to 17 million units is surmountable.

    “With a population of about 200 million that is growing at an average rate of three per cent per annum coupled with an annual rural-urban migration rate of over five per cent, Nigeria is said to be in need of about 720, 000 housing units per annum. Currently, the annual aggregate production is about 100,000 housing units, thereby leaving a huge gap.”

  • FMBN spends N1.4b on housing units in Niger

    The Federal Mortgage Bank of Nigeria (FMBN) has disclosed that N1.4 billion have been expended for the development of 379 housing units in Niger State just as the Minister of State for Power, Works and Housing, Alhaji Mustapha Baba Shehuri, said the nation needs 17 million houses to meet up with the challenge of housing deficit.

    The minister, who stated this at the opening of the Federal Mortgage Bank of Nigeria and Sea Mountain 133 Housing Estate in Minna, Niger State, said that with the need of 720, 000 housing units per annum, the annual aggregate production of 100 housing units is not tenable to meet the huge gap of housing in the nation.

    “The Ministry of Power, Works and Housing will continue to strive to ensure that the challenges of housing deficit in Nigeria which has been put at 16 to 17 million units is surmountable.

    “With a population of about 200 million that is growing at an average rate of three per cent per annum couple with an annual rural-urban migration rate of over five per cent, Nigeria is said to be in need of about 720, 000 housing units per annum. Currently, the annual aggregate production is about 100,000 housing units, thereby leaving a huge gap.”

    The Minister said the Ministry’s plan to build mass housing units in every state of the federation for public workers yearly over the next three years has reached an advanced stage of implementation.

    He further said that National Housing Models have been designed and approved for each geo-political zone while commending the Federal Mortgage Bank of Nigeria for its efforts in stepping up to the challenge of housing deficit.

    In his address, the Managing Director, Federal Mortgage Bank of Nigeria, Mr. Richard Esin said the estate which comprises of 51 units of three bedroom bungalows and 82 units of two bedroom bungalows costs N5 million for two bedroom semi-detached bungalows and N7 million for 3 bedroom fully detached bungalow.

    According to him, FMBN has invested N1.4 billion for the development of 379 housing units in Niger state emphasing on its mandate to provide Nigerians access to mortgage finance at affordable rates to enable them own houses of their own.

  • Fashola raises hope on housing scheme

    Fashola raises hope on housing scheme

    Nigerians’ hope of owning  homes is looking up. This is because houses built under the Federal Housing Scheme will be allocated to all Nigerians, irrespective of their states of origin.

    The Minister of Power, Works and Housing, Babatunde Fashola, gave the assurance shortly after completing a tour of federal projects in Maiduguri, Borno State.

    “I prefer to use the word residents to indicate people who live or work in the states where the houses are built, rather than those who are indigenous to the state,’’ Fashola said, adding that the ultimate beneficiaries of the houses will be residents of the states in which the houses are built.

    He said the objective of the scheme is to deliver affordable houses to workers based on the National Housing Policy.

    “There is a National Housing Policy in place aimed at providing affordable housing, but there has been no programme in place to deliver the houses. That is what this programme is all about,” he said.

    The National Housing programme is built on a foundation that requires consulting stakeholders, by conducting, surveys so the stakeholders can take ownership of it. This, he explained, is why the ministry is consulting, in the hope that it will be able to carry along the stakeholders so that they can take ownership of the scheme.

    He said it is after this stage that the ministry can talk about affordability, pointing out that the housing scheme was also part of government multi-facet approach to economic development.

    “The programme is part of government efforts to create value chain economic activities, aimed at empowering Nigerians all over the country. Workers will be happy on site getting paid from contractors to take care of their families and patronising food and others,” he said.

    The minister also said the ministry was training artisans such as carpenters and bricklayers, among others, to be relevant technically.

  • Housing loan for 60 Immigration officers

    The Nigeria Immigration Service, (NIS) in collaboration with the Federal Mortgage Bank, has secured a housing loan facility for 60 officers and men of the service.

    The facility is worth N60 million.

    Comptroller General, (CG) of NIS, Muhammad Babandede, disclosed this at the official presentation of a dummy cheque to beneficiaries.

    Babandede said the development is part of efforts to enhance the welfare package of the workforce for improved productivity and efficient service delivery.

    He also noted that it will help curb corruption in the service, adding that owing a house for officers and men is one thing that government should encourage through loans.

    The immigration boss told the beneficiaries that deduction will start immediately during the payment of their salaries urging that to spend wisely.

    He said, “I have been talking to my staff on discipline and I have been telling them that they should not be corrupt. You can’t achieve that without giving them something. Safety of lives is very important. For my officers and men I like to put them in a safe place. When corruption becomes high, so people do not know what to do, you spend 35 years in service and you do not have where to put your head.

    “Retiring in a rented house is the worst thing that could happen to anyone. So when this opportunity came I considered it good for the service. So far sixty (60) officers and men have benefited from the scheme. The scheme is a partnership between the NIS and our National Housing Fund managers, the Federal Mortgage Bank of Nigeria. It is designed to leverage on the National Housing Fund contributory package to ensure that all participants get decent commitment and dedication from the workforce.”

    The Executive Director of Federal Mortgage Bank, Charles Ajiba told the service that it will not regret partnering with the bank adding that its goal is to provide long time plan for people especially civil servants that want to own their houses.