Private Sector Housing Delivery: Challenges and Prospects in Nigeria

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Private Sector Housing Delivery in Nigeria
(Challenges and Prospects)
A GROUP TERM PAPER
REG. No.: HEM 1137- HEM 1146

DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION
SCHOOL OF ENVIRONMENTAL STUDIES; FEDERAL POLYTECHNIC, NASARAWA, NASARAWA STATE e-mail: fpnas@yahoo.com, Tel.: +234 – 047-66701, 66707 047 – 66238 (DL)

JULY 27, 2012

Private Sector Housing Delivery in Nigeria: Challenges and Prospects

BY

ISAAC, OKORONKWO .C.
Department of Estate Management and Valuation, School of Environmental Studies, The Federal Polytechnic Nasarawa, Nasarawa State. Group Leader’s e-mail: optdreams@gmail.com, Tel.: 08069513532, 08098833372

Abstract
This paper seeks to pinpoint the pluses of private sector housing delivery in Nigeria, with the view to ascertaining extent of the problems as well as challenges. The data utilized in the paper was generated through observations and group discussion. Findings of the study reveal the problems faced by the private sector in facilitating housing delivery. The paper argues that this poses a great challenge to the economic development of the nation. Thus, it was suggested that the government should strengthen the operational environment and provide a legal frame work for private sector participation in housing delivery system.

Key words: 1.0 Introduction.

Housing, Housing needs and Economic Growth.

Housing is one of the most basic human needs. “Housing is a bundle of joy” (Agbola, 2003). The history of housing development in Nigeria is that of the private sector driven. In recent time the private sector contributes a larger proportion of housing stock in the country. The private sector in the housing delivery consists of the individuals and corporate organizations. The sector provides houses for their direct use, their staff, for rental or sale. The sector has been more efficient in the production of housing. That is why scholars have suggested that the government should only create the enabling environment for the private sector to meet the housing need of the people. 1

Private Sector Housing Delivery in Nigeria: Challenges and Prospects

According to the UN (1976), observes that if the national housing goals are to be met, government should encourage, orient and if necessary, supervise the private housing sector. In the same vain, Freedman (1969), suggests that housing delivery should be left to the private sector to manage. The private sector involvement goes beyond direct housing construction to manufacturing of all types of building materials, supply of labour and capital (Windapo, 2007).

In most countries of the world, the housing sector is a blend of private enterprises and government activities. The point of emphasis in this term paper is the challenges and prospects of private sector participation in housing delivery. In assessing the performance of the private sector in housing provisions, it is necessary to look at the following; i) Cost of labour ii) Accessibility to land iii) Cost of building materials iv) Accessibility to housing finance facilities v) Hindrances posed by government policies, regulations and bye-laws; vi) Poor infrastructural provision vii) Inflation during the life of a project (Okupe, 2000); and viii) Corruption/greed.

2.0

Conceptual Issues and Relevant Literature
The contemporary developments worldwide seem to favour the private sector driven housing development. The argument in favour of private sector is hinged on the efficiency and effectiveness of the private sector as well as the corruption and inefficiency of the public sector. The Nigerian government has identified with this view, and has in recent times introduced a number of reforms aimed at stimulating and assisting the private sector to play the leading roles in housing production and delivery. The reforms are in the establishment of Real Estate Developers Association of Nigeria (REDAN), Building Materials Producers Association of Nigeria (BUMPAN), the reduction...
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