Housing Delivery In Nigeria

A TERM PAPER ON

HOUSING DELIVERY AS SUBMITTED BY

ORESEGUN ADEDAPO T F/HD/06/3510041 OF

H.N.D 1 BUILDING TECHNOLOGY TO MR. E. A. ADETOLA

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1.0INTRODUCTION 1.1 BACKGROUND OF THE STUDY

Housing is one of the 3 most significant in the sustainability of human existence with considerable economic, social, cultural and personal importance. The production of housing is has been influenced largely by policies, innovation and the ability to sustain the environment.

Housing encompasses all social services and utilities that make life meaningful and the environment habitable. The problems that affect readily housing delivery in Nigeria are enormous and very complex. These problems in most of our urban cities in Nigeria encompasses the availability of housing units both in quality and the number available which in turn has resulted into congested homes and community and the resultant of this is the ever increasing pressure on the infrastructural facilities which will rapidly deteriorate. The situation in the rural area is even worse where the quality of housing is very poor and very low in quantity. Infrastructure like power, roads, water, drainage and every other constituent of housing is readily unavailable. oresegun adedapo tolulope

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In Nigeria today, over 7 out of every 10 people live below the minimum poverty level and 9 of every 10 are in the low income group therefore these people cannot provide housing for themselves; they then are rendered homeless or live in poor housing. The government had in place various policies as regarding housing delivery to the public but poor implementation has made it impossible to meet up with the 12-14 million housing units needed ( Balogun, 2007 ).

1.2 STATEMENT OF THE PROBLEM

It has been observed that majority of the people are living in poor housing or totally homeless even in urban centre to talk of the rural areas where the housing there is generally poor and very low in quantity despite all governmental policies to provide housing to the public.

1.3 AIM AND OBJECTIVES

The aim of this research is to find out the problems hindering the delivery of housing in Nigeria, its effects and profer solutions.

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OBJECTIVES

-To identify problem hindering housing delivery

-To the different housing policies analyzed

-To itemize the effect of the problems inadequate housing delivery

-To proffer solutions to these problems

1.4 RESEARCH METHODOLOGY

The data used for the purpose of this research is gotten from journals, books, past project works, analytical discussion with estate surveyors and valuers and seminar papers. 1.5SCOPE AND LIMITATIONS

The limitations encountered while this research was time constraint, withholding of information for security reasons and the usual Nigerian factor of bribery before getting information.

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2.0LITERATURE REVIEW

2.1.1 WHAT IS A HOUSE The oxford advanced dictionary defines house as “a building made for people to live in usually for one family or a family and lodgers {guest} {Hornby et al 1984}. Technically, a house can be defined as a building or structural edifice comprising of walls with foundation, floors, roofs e.t.c. in which man lives thereby sheltering himself from the harsh effects of weather, wild animals and the element.

Houses are for different uses but the most common ones are, i residential ii commercial iii industrial iv institutional v recreational A house is basically built on a piece of land commonly known as a plot. With respect to size of the plot and the planning regulations of the area the building is located, houses generally have spaces around them and this spaces include (I) set backs (ii) space around the building (iii) parking lot (iv) flower gardens and (v) undeveloped parcels of land.

Most of these spaces are usually utilized as green belts or area flower garden or buffer belts shielding noise from one house to the other. oresegun adedapo tolulope

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The most common type of houses are (i). bungalow (ii). Storey-houses (iii) Block of flats (iv) multi-storey houses (v) multi-tenement houses (vi) mud houses (vi) terraced houses.

2.1.2

WHAT IS HOUSING

Housing is a word that is common to many societies but most widely misunderstood especially its technical definition or meaning. Housing is therefore viewed not only is a matter of shelter together with its supporting infrastructures but more comprehensively as an evolutionary and participating process is a complex system of interactions between institutions and residents which give shape to human settlements. Breaking it down Housing comprises more than four walls and a roof, it also includes supporting infrastructure such as water supply, electric power roads, shopping facilities, recreational facilities, a good and enabling environment. Further more, institutions such as the housing corporations, mortgage financial institutions, developers, estate agents, buyers and sellers all make up the housing industry. Housing affects all individual in any society including the homeless and the destitute. Housing can also be described as accommodation with all the necessary ancillary services with it. oresegun adedapo tolulope

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2.1.2.1 IMPORTANCE OF HOUSING The importance of housing to man can never be over emphasized but a few of the importance of housing will be discussed under the following headings, I. Provision of shelter / accommodation: the provision of shelter goes

beyond the provision of a place for man to rest his head, it goes as far as provision of safety and security from sunshine, rain and other harsh weather condition. Further more, it protects man wild animals and their attacks. II. Investment which yields a flow of income: one of the major reasons

why people build houses is to generate income and even make profit from the house when constructed. As a result of this, they plunge into construction of houses which are let out to tenants who in turn pay rents monthly, annually or otherwise as agreed with the landlord. For example a man who owns a block of ten flats with a monthly rent of #6,000 monthly per flat, such man will be making precisely #60,000 monthly as rent or #720,000 annually. This is indeed real flow of income. III. Source of social prestige: in some communities one of the yardstick

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of his own or not. Any individual who has not attained this status may not be taken serious within this society of people; this is because anyone who owns a house of his own is conferred some social prestige to belong to the class of landlords. IV. Provision of employment: the construction of a houses provides

employment for several categories of people whether professionals or artisans. Right from the purchase of the land; the land surveyor is employed to provide the survey plan, then the architect is employed to design the structure; the town planner approves the building drawing; the quantity surveyor provides the bill of quantities and then the builder builds the house. At the completion of the project, the estate surveyor takes over the building to let it out to the would be tenants. During the construction process, artisans like bricklayer, iron benders, carpenter, plumbers, electrician, e.t.c. are gainfully employed. V. Provides collateral security for loan: all around the world one of the

lending terms for loan taking in banks is the provision of collateral security to the loan amount desired. One of the reasons why the house meet up this security is because it has a high value when ever it is offered for sale. Also, a house is durable, static, appreciates in value oresegun adedapo tolulope

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over time, capable of generating income and always in high demand, therefore ownership of a house automatically provides the owner a form of collateral security anytime he desire to apply for a loan. VI. Durable good which can be inherited: a house is a durable good

which can last up to 100 years which means that housing can be transferred from one person to another such as from father to son as a sort of inheritance. VII. Housing contributes to a physical development: the building and

their accompanying infrastructure is one single factor that contributes largely to the development of town and cities. There are no settlement without houses or buildings. There cannot be meaningful physical development in any place without the construction of houses and roads. Apart from the aesthetic of beauty of housing estates, they constitute a significant percentage of physical development of such cities.

2.1.3 HOUSING NEEDS A need is a requirement or something felt to be necessary. It also connotes a want or lack in which case when there is a need for something, it implies that, that thing is in lack and therefore wanted. It can also mean something oresegun adedapo tolulope

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that is very necessary, very much required in order to fill up some gap or want. Applying this idea of need to housing, we can explain housing need to mean the minimum shelter or accommodation required to meet the basic minimum requirement of a family or an individual. Viewed on a general sense, housing needs relate to standards of accommodation, deemed acceptable by society. Housing need is fairly difficult to measure precisely due to the fact that the range and degree of needs varies considerably. However, a minimum standard of housing is necessary for a household to meet its physiological and psychological requirements can be taken as Housing needs. Many people in Nigeria are homeless including destitute who roam about the street of urban centers and sleep in the markets and fly over bridges at nights in cities such as Lagos. Such phenomenon readily exposes the inadequacies of housing accommodation hence, more housing is needed. It is only a good estimation of housing need in a given society that can lead to a lasting solution of housing delivery. 2.1.4 HOUSING MARKET A housing market is a market where housing goods and service are sold and bought by virtue of their being demanded and supplied. oresegun adedapo tolulope

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Housing market may not necessarily be public buildings or open

spaces

like common market. Nevertheless, housing markets are dotted allover a nations landscape. It is like a system or an industry. Those who trade in the housing markets know where and how to locate themselves in order to buy and sell housing goods and services. Rapkin et al {1982} described a housing market area as the physical area in which all dwelling units are linked together in a chain of substitution, where each can be considered

as a substitute of the other.

Thus by this definition, we can identify several housing markets in Nigeria. 2.1.5 HOUSING QUALITY Housing quality describes the state, nature or standard of housing with respect to acceptable standards. Thus a good quality housing implies a level of housing which has no less than the minimum of factors of which the most important is income. The level of income is one of crucial factors that determine the type and quality of housing a household obtains in any given market. This observation is on the part of the consumer of the housing good and services and it is true of the Nigerian housing market which is operated essentially on the principles of free market enterprise. oresegun adedapo tolulope

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2.1.6 HOUSING FINANCE Housing finance literally means finance for housing or real estate development. However, it means more than that, it also means or includes the source of the finance, the management of the finance and all various operations on the source, management, procurement and utilization as well as repayment of such finance. Housing finance equally means the same thing as mortgage finance except that while housing finance is a general term encompassing all the transactions in the housing market, mortgage finance can be applied to single or individual housing financial transaction.

2.1.6.1 SOURCES OF HOUSING FINANCE There are two (2) major sources of housing finance which are the public and private sources. This is shown below in the diagram.

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HOUSING FINANCE

PUBLIC

PRIVATE

INFORMAL

FORMAL

FIG. 1: Illustrating the various types and sub-types of housing finance sources Breaking this diagram down there are some housing finance sources that falls into these groups. (a). public sources i.

Federal Government Staff Loan Scheme

ii.

Federal Mortgage Bank

iii.

Federal Housing Authority

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iv.

State Government Staff Housing Loan Scheme

v. vi.

State Government Housing\ Property Development Corporations State Governments Home Ownership Companies

. vii.

State Government Mortgage Banks

viii.

Local Government Staff Housing Loan Scheme

ix.

National Provident Fund

x.

State Savings and Loan Scheme

(b). private sources. These can be sub divided into 2 viz private formal and private informal. 1. private formal sources i.

Primary Mortgage Banks

ii.

Commercial Banks

iii.

Merchant Banks

iv.

Development Banks

v.

Financial and Investment Companies

vi.

Insurance Companies

vii.

Trust Funds

viii.

Co-operative and Thrift societies

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2. private informal sources i.

Esusu system

ii.

Thrift system

iii.

Co-operatives

iv.

Friends

v.

Family\ relatives

vi.

Personal savings

vii.

Money lenders

viii.

Other sources

2.1.7 HOUSING POLICIES AND PROGRAM Housing policy is written document which is usually comprises specific objectives, strategies and programs aimed at solving the housing problems or meeting with the ever-increasing housing needs and demands of a country. {Ezenagu, 1990} Housing policy should contain the government’s views, policy objectives, strategies and programs all aimed at solving the housing problems of a particular country. Housing policies usually go together with housing programs. Housing policies are like principles while housing programs are like practice. Again, it can said that housing policies are like theories while programs are like oresegun adedapo tolulope

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practical; both of which are aimed at solving various housing problems bedeviling a particular country or society. Below is a list of some housing programs initiated in Nigeria at one time or the other. i.

The public \mass housing programs of the third national development plan period (1975-1980).

ii.

The public \mass housing program of the fourth national development plan period (1985-1985).

iii.

The public housing program of the Lagos state government during the defunct second republic (1978-1983) spearheaded by Lateef Jakande.

iv.

Lagos state housing program fronted by Lagos state development program corporation ( L.S.D.P.C ) (1999-2007).

v.

the new national housing policy 1991

Housing policies in Nigeria are aimed basically at 6 major objectives which are to: i.

Facilitate provision of houses for Nigerians at affordable prices.

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ii.

Ensure the constant supply of loans to build, buy improve their residential houses.

iii.

Provide incentives for capital market to invest in property development.

iv.

Encourage the development of specific programs for effectives financing of housing developments, in particular low- cost housing for low- income workers.

v.

Provide policy control over the allocation of resource and funds between the housing sector and other sectors of the economy.

vi.

Provide long term loans to mortgage institutions for on-lending to contributors to the fund

2.1.7.1 AN APPRAISAL OF SOME HOUSING POLICIES AND HOUSING DELIVERY IN NIGERIA. 1. NATIONAL HOUSING POLICY OF 1991 The national housing policy of 1991{and its financial component-national housing fund} was in operation for over eight years. A review of its oresegun adedapo tolulope

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implementation and performance did not show any remarkable influence in housing delivery in the country. Between1992 and 1999 0nly #80million was disbursed to180 contributors out of #3.738 billion collected from over 16,624,857 national housing fund contributors which makes up about 180 new dwellings. This makes the percentage of dwellings met up with about 0.01% {Arigbabola, 2000}. 2. NATIONAL HOUSING PROGRAMME {1994} The national housing program launched by the then head of state General. Sanni. Abacha on April 1994. it also took advantage of the national housing fund because it was the off shoot of national housing policy of 1991.The primary aim was to establish a permanent housing delivery system which should be self sustaining under a revolving fund arrangement. The target figure was 121,000 housing units to be distributed throughout the states of the federation. Available statistics shows that only 1,367 units were completed and another 17,792units are under construction. This only accounts for 15% of the project target.

2.2. PROBLEMS AFFECTING HOUSING DELIVERY IN NIGERIA The problems facing the supply of housing in Nigeria as identified by this oresegun adedapo tolulope

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research are as follows: i.

Difficulty in securing land and where possible at high prices

ii.

High cost of labour , building materials leading to high cost building construction cost.

iii.

Lack of mortgage finance and where available with difficult lending terms and conditions {such as availability of collateral securities and high interest rates} to the exclusion of low income people.

iv.

Our crowding, high room occupancy rates leading to over use\ over stretching of existing facilities with in turn often break down.

v.

High housing rents per unit leading to occupants spending more than the recommended rate 20% of their monthly income on housing. Also, many land lords these days demand up to 2years rent in advance which is not easy to come by.

vi.

Acute shortage of housing accommodation which probably would contribute to high rents and overcrowding.

vii.

The growth and development of slums especially by the first migrants as a result of acute quantitative shortage of housing. The slums and squatter settlements have created very unsightly conditions , urban blight with environmental deterioration and degradation and can

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even lead to disease or epidemic. viii.

High cost of housing designs and professional fees and the building design in some cases do not meet the socio-cultural need of the people. Also , there is high cost of obtaining development permit from town planning authorities.

ix.

Inadequate provision of infrastructural facilities such as good roads, pipe-borne water {supplies}, power supply {electricity}, drainage system, refuse disposal systems e.t.c . Power supply in Nigeria today is grossly inadequate as most resident enjoy electric power less than 10% of the time on the average in most urban centers yet they pay bills as if they enjoyed 100% supply of power.

x.

Power transportation services together with distance to place of work, schools, shop{for shopping} e.t.c. equally contribute to the existing housing problem, especially if the transportation cost are high or places of schooling or employment location are far.

xi.

Rural housing problem, students housing problems, urban filth and squalor, poor sanitation services, unwholesome and unhealthy environment.

2.2 POSSIBLE PRACTICALSOLUTIONS TO HOUSING oresegun adedapo tolulope

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DELIVERY PROBLEMS IN NIGERIA. Below is listed some suggestions as practical solutions to some of Nigeria’s housing delivery problems. The government should; I. Ensure adequate provision of site and services scheme for

massive housing provision for all its employees. \ II. Ensure the effective mobilization of mortgage finance so as to

make same easily accessible to all its staff. III. Pursue vigorously a staff housing loan scheme such that all

their staff can benefit at below market interest rates. Monthly deduction can be made from staff’s only monthly salary so as to recover both the principal and the interest. By so doing, homeownership as a policy would then be pursued at various government levels. IV. The land use decree of 1978 should be positively reviewed to make land acquisition to all and sundry much easier. V. Government can also pursue rent control measures that will be practicable and result oriented so as to effectively control the problem of high rents. VI. Urban renewal measures, programs and projects should also be

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federation. This is with a view to eliminating the problems of poor environmental sanitation, urban blight and squallor and unsanitary conditions. VII. Government should pursue a dynamic mortgage finance\ credit

facilities policy such that such finances would be within reach of low income people, at very moderate lending terms including below market interest rate. VIII. Government can build model housing estates for the low

income people where they can buy houses of their own at very liberal conditions. IX. Government should pursue an aggressive homeownership

policy with very good home ownership programs to back it up. X. Other positive measures, policies\programs that can

significantly contribute to solving the numerous housing problems of this country. XI. The federal government should as a matter of policy set aside a

reasonable percentage of the country’s gross national product or gross domestic product or its annual budget for housing. This will ensure a steady supply of funds and will boost the housing sector. oresegun adedapo tolulope

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3.0 CONCLUSION The need for housing in Nigeria is enormous. This section reviewed the conceptual issues underpinning the delivery of housing. The various public interventions in housing delivery in policies have been examined. This term paper also identified and have discussed the various problems that has bedeviled the provision of housing in Nigeria, the various policies the government put in place to counter this problems, the short comings of these policies and suggested some possible practical solution to these problems.

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REFERENCES Hornby A. S. ( 1984 ) “ Oxford Advanced learners dictionary” Oxford University press Ezenagu V.C. ( 2000 ) “ Fundamentals of housing” Living- Stone Publishers Arigbabola A. ( 2000 ) “ Conceptual issues in Housing and Housing provision” Unpublished. Balogun M. O. ( 2007) “ The built environment – innovation policy and sustainable housing development in Nigeria.” Builder Focus 2007 Ezenagu V. C. ( 1998 ) “ Concepts of housing” Unpublished Omange G. N. ( 2001 ) “Government involvement in housing” Unpublished

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