Nigeria's Housing Deficit Hits 28 Million, Requires N21tn To Bridge It - BOI - THE DAILY CRUCIBLE

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Nigeria's Housing Deficit Hits 28 Million, Requires N21tn To Bridge It - BOI

       •Housing apartments


| The Daily Crucible | Monday, August 8, 2022

Nigeria's estimated housing deficit across the 36 states and Federal Capital Territory (FCT), Abuja now stands at 28 million while the amount required to fund the housing sector and bridge the gap within a reasonable period is also N21tn.

Bank of Industry, an agency of Nigerian Government disclosed this in its new report on the country’s housing sector, according to punch report.

BOI noted that “with a growing urban population, increasing construction costs, and declining household income, access to affordable housing is becoming more difficult for millions of citizens.”

In the report titled, “Institutional turnaround for the next level,” it indicated in 2022 appropriation, the Federal Government budgeted   N470bn whereas the sector requires trillions of naira to bridge its housing deficit.

According to the report, with estimated 206 million people in Nigeria, about 95.1 million live below poverty line and face real difficulties to have access to own their personal homes.

Under the section on Nigerian Housing Market in the report, the bank said, “N21trn (is the) amount required to fund the housing sector,” adding that “28 million units (is the estimated) housing deficit.”

The BOI, however, outlined some critical areas to be addressed to reposition the housing sector in Nigeria, stressing that adequate financial intervention in the housing value chain was required to boost development in the sector.

“Increased partnership with the organised private sector is crucial to unlocking opportunities in the real estate market,” the report stated.

It added, “There should be a continuous upgrade of neighbourhoods that are in a state of decay into liveable and organised housing facilities and development of low cost housing that is affordable and accessible to interested home buyers.”

The bank noted that subsidised mortgage rates would be needed, as it stated that interest rates charged on mortgage should be subsidised to make it more affordable and attractive.

“The process of accessing the National Housing Fund should be made more efficient to improve access to the fund,” the BOI report stated.

It added that there should be “increased awareness of the availability/requirements for accessing the National Housing Fund and access to roads, power, water among others are critical to housing development especially for those outside urban areas.

“Accessibility to infrastructure will encourage people to move away from crowded urban centres to developing areas. Adopt digital technologies such as virtual tours, augmented reality, etc, in showcasing properties so as to generate interest in the buyer’s mind.”

It further stated that prospects would be more likely to buy if property documents were digitised and easily accessible, adding that the government should ensure that all policies concerning NHF home ownership were in line with current realities, and were favourable to interested parties.

 The International Human Rights Commission recently put the estimated housing deficit in Nigeria at 28 million, but the Minister of Works and Housing, Babatunde Fashola, argued that it was impossible to get the actual housing deficit across the country without a thorough assessment.


 

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