| As Nigeria marks her 10th year of uninterrupted | | | | luxury high rise flats. |
| democratic rule it is important to examine how | | | | Further effects include a loss of confidence by |
| the various sectors of the polity have fared in the | | | | prospective purchasers for Federal Government |
| last decade. | | | | properties particularly in the secondary and |
| One of the key areas is housing. How has the | | | | tertiary markets. Even financial institutions are |
| housing sector fared in the last 10 years? To | | | | reluctant to touch them as a result of the |
| effectively answer that question, it might be | | | | imbroglio. A certain degree of uncertainty still |
| necessary to appraise the state of housing 10 | | | | hovers over some of these properties. |
| years ago at the onset of democratic rule in | | | | In mid 2008, the President had instructed the then |
| 1999. | | | | Minister of Housing Mrs. Tayo Alao, to ensure that |
| In fact, 1999 was just one year away from the | | | | a million homes (houses) were delivered to the |
| magical year of 2000 in which the Babangida | | | | masses of Nigeria by the end of his first term in |
| government had professed "Housing for all". In | | | | 2011. |
| retrospect it is now obvious to all that it was just | | | | In practical terms and using June 1, 2008 as our |
| a political slogan with very little work done | | | | start off date, the government would need to |
| towards the attainment of that objective. | | | | deliver 913 homes (houses) daily to achieve that |
| As at 1999, the mortgage industry was | | | | target by the 29th of May, 2011. |
| comatose with little or no activity in that sector. | | | | So far, nothing on ground indicates that the set |
| Commercial interest rates were sometimes as | | | | objective is being achieved or that efforts have |
| high as 40% per annum with banks only | | | | been put into gear towards achieving them. One |
| interested in short term lending of 90/120 days | | | | hopes that it will not turn out to be another |
| with focus more on trading. At that time, talk of | | | | politically expedient statement. |
| a mortgage facility for a 10 year period was out | | | | In the final analysis, if only 25% of that target is |
| of the question. | | | | achieved, it would go a long way in alleviating the |
| Ten years ago the Land Use Decree was still in | | | | housing needs of Nigerians. |
| force (it still is) with its attendant effect on land, | | | | Ten years of our democracy, one cannot exactly |
| landed property and land transactions. Access to | | | | say that the housing sector has been gained |
| land was difficult, land values were high, | | | | much. |
| infrastructural facilities fell short of what was | | | | Access to finance, though it has improved slightly |
| required and one still required the government's | | | | with the recapitalization of the banking institutions |
| consent with all their bureaucratic bottlenecks for | | | | in 2006, is still a far cry from what is needed to |
| all transactions concerning real estate. | | | | make a major impact for the housing sector both |
| Ten years on, what has changed? | | | | in the development and the mortgage areas. |
| The Land Use Decree is still very much in place | | | | Lack of infrastructure still remains a major |
| despite its glaring short comings and clauses that | | | | disincentive to property developments, and the |
| inhibit property development and property related | | | | resultant effect is increased cost of housing |
| transactions. | | | | delivery. |
| Only a few months ago the President set up a | | | | Non availability of statistics on housing remains a |
| Land Reform Committee to advice government | | | | problem. Till date, it is difficult to obtain the |
| on the amendments to be made to the Decree. | | | | number of houses constructed annually in Nigeria, |
| However bearing in mind that the Land Use | | | | their types, flats, bungalows, detached houses etc. |
| Decree remains a part of the Nigerian Constitution | | | | Data about the average number of houses need |
| and the long winding process required to make | | | | in Nigeria annually range from 75,000 units - |
| amends to the Constitution, it remains a miracle | | | | 250,000 units depending on who is involved. These |
| to see how the recommendation of the Land Use | | | | statistics are direly needed to help plan and |
| Reform Committee will be implemented. | | | | project housing needs not only for the present, |
| However, the first step has been taken in the | | | | but also the future. |
| right direction. | | | | Experience has shown that the various housing |
| Another issue that impacted on the housing | | | | developments that have come on line are always |
| sector in the last 10 years was the sale of | | | | targeted towards the upper end of the market |
| Federal Government properties to civil servants. | | | | with price tags ranging from N,15000,000.00 |
| Opinions are as diverse as the number of | | | | (Fifteen million Naira) and upwards. |
| properties sold (over 10,000) as to the desirability | | | | Little cognisance is taken of the low end of the |
| or otherwise of that policy decision. | | | | market where almost 70% - 80% of the |
| Most civil servants acquired their properties at | | | | population fall into and where property sale prices |
| nominal values, and immediately put them back in | | | | in the range of N5,000,000.00 (Five million Naira) |
| the market for sale at open market capital values. | | | | and below would be most welcome. |
| The general belief at that time was that values | | | | The question may then be asked if it is possible in |
| would fall as a result of the flooding of the | | | | the present circumstances to build and sell at a |
| market with all these properties, but that was | | | | profit, developments for less than N5,000,000.00. |
| hardly the case. The properties were quickly | | | | The truth is that in the past 10 years construction |
| absolved without an impact on values. | | | | costs and materials have remained high in Nigeria |
| Indeed it was a pointer to the underlying fact of | | | | and it goes without saying that a lot more must |
| excess demand for housing, far and above | | | | be done by the relevant professionals and bodies |
| available supply. | | | | especially Nigeria Building and Road Research |
| In Lagos State, a slightly different scenario played | | | | Institute (NBRRI) to research into cheaper and |
| out. The Lagos State Government insisted that | | | | more cost effective means of housing delivery |
| the Federal Government had no right to sell its | | | | with particular focus on our environment. |
| (Federal) properties in Lagos and that indeed if | | | | Our technical schools need to play a better role in |
| they were not needed anymore then Lagos | | | | the training of artisans for the construction |
| State had a right to reclaim them all. | | | | industry. In the last 10 years a disturbing trend |
| A major conflict arose. The Federal Government | | | | has emerged. Artisans from the neighbouring |
| went ahead and sold. Lagos State retaliated by | | | | countries Ghana, Benin Republic and Togo, have |
| not recognizing the Federal Government | | | | been found to be better than the Nigerian |
| Certificates of Occupancy, and insisted that all | | | | workers, and will be found in most sites across |
| those who bought from the Federal Government | | | | the country plying their trade. |
| would still need to seek "regularization of title" | | | | By and large in the last 10 years progress has |
| from Lagos State. This "regularization of title" | | | | been made, but a lot more could have been done |
| meant the payment of various sums of money | | | | and needs to be done. |
| ranging from N10,000,000.00 (per 1000 square | | | | Adequate housing remains one of the basic needs |
| metres) of land in Yaba / Surulere, to as much as | | | | of man, and the aspiration of every Nigerian. It is |
| N20,000,000.00 (per 1000 square metres) of land | | | | also one of the 7 point agenda of Mr. President. |
| in Ikoyi etc. | | | | The facts on ground indicate that it is still out of |
| Failing this payment planning, approval would be | | | | reach of the average Nigerian. Our hope is that as |
| denied the purchaser. | | | | we commence the next decade of democracy, |
| This state of affairs has had the resultant effect | | | | housing will be given its rightful place in the order |
| of slowing down redevelopment of a larger | | | | of priorities - at the top, or at least, close to the |
| number of these properties especially on the | | | | top. |
| Island where developers had mostly proposed | | | | |