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Business Management Dynamics Vol.1, No.4, Oct 2011, pp.01-08

Issues and Challenges Militating against the Sustainability of Affordable Housing Provision in Nigeria
C.A. Ayedun1 and A.O. Oluwatobi2 Abstract Housing all over the world has remained an interdependent phenomenon that affects every facet of mankind. Its importance is so pronounced that it imparts on the social, physical and mental wellbeing of man irrespective of his socioeconomic status, color or creed. It represents of the most basic human needs and has no doubt impact on the health, welfare and productivity of the individual. In spite of the importance of housing to mankind, there is however, a universal shortage of needed dwelling units especially in developing countries including Nigeria where population growth and urbanization are rapidly on the increase and where the gap between housing supply and housing demand is so wide. This paper critically appraises the contemporary housing and the role of government in the provision of housing in the country. It places in context public housing policies and programmes as they affect the development of housing at the turn of the country. The paper proposes initiatives to address the country’s monumental housing needs through the provision of enable environment which will make the resources required for acquisition housing to majority of the citizenry accessible. Key words: Affordability, Housing Provision, Issues, Nigeria.

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INTRODUCTION The significance of housing as a major determinant of man’s welfare, life sustenance and survival cannot be over emphasized. It has and will always be a prime concern to individual, the family, community and the nation at large. To the individuals, owning a home has always been a cherished dream and life ambition most especially in developing countries such as Nigeria. In most cases, it constitutes the first major capital investment of individuals. Provision of housing as

References: Aikorin, A. (2008) Mortgage Facilities: Panacea for Mass Housing Development. An Article Published in Nigeria Tribune Newspaper of 10th January. Akeju, A.A. (2007) Challenges to Providing Affordable Housing in Nigeria. A Paper Presented at the 2 nd Emerging Urban Africa International Conference on Housing Finance in Nigeria held at Abuja between 17th and 19th, October Akomolede, K. (2007) Low Income Earners and the Burden of Home Ownership in Nigeria, Nigerian Guardian Newspaper of January, 29; p. 29. Chukwujekwu, I.E. (2006) Facilitating Low Cost Housing Scheme: Which Way Forward? The Journal of the Association of Housing Corporations of Nigeria, Vol. 1 No. 10 Jagun, A. (1983) Urban Housing Need Estimate in Nigeria: Government Capacity in its Provision. Journal of Business and Social Studies, Vol. 4 No. 2 Ogwu, D. (2006) Solving the Mortgage Loans Affordability Questions in the Mortgage Market: A Case Study of the National Housing Fund (NHF). A Paper Presented at a Workshop on Sustainable Mortgage Market for Effective Home Ownership Held at Abuja, Nigeria on 22 nd November. Olotuah, A. O. (1999) “A Critical Appraisal of the Liveability of Public Housing Schemes in Ado-Ekiti, Nigeria” International Journal of Environment and Development, Vol. 3 No. 2 Onibokun, A.G. (1972) “Nigeria: Strategies for Urban Redevelopment” Journal of Royal Town Planning Institute, Vol. Vol. 58 No. 2 Onokerhoraye, A.G. (1976) “The Pattern of Housing in Benin, Nigeria” in Ekistics Onyike, J.A. (2007) An Assessment of the Affordability of Housing by Public Servants in Owerri, Nigeria. Journal of Land Use and Development Studies; Vol. 3 No. 1 Sanusi, J.O (2003) Mortgage Financing in Nigeria: Issues and Challenges. A Paper Presented at the 9 th Edition Nigerian Institution of Estate Surveyors and Valers Organised John Wood Ekpenyong Memorial Lecture on 29th January Sombo, P. (2007) Nigeria Mortgage System- FMBN Needs N150. Retrieved September 22, 2008 from hh#ttp://allafrica.com/stories/200710190422.htm1 Wahab, K., Adedokun, L.A and Onibokun, A.G. (1990) Urban Housing Conditions in Urban Housing in Nigeria, NISER, Ibadan pp. 89-140 (viii) ©Society for Business and Management Dynamics Business Management Dynamics Vol.1, No.4, Oct 2011, pp.01-08 Uroko, C. and Akintola, K. (2008) Addresing Africa’s Housing and Urbanization Problems. Retrieved September 30,2008 from: http://www.businessdayonline_in_Nigeria/14031.htm1 Table1: Constraints Militating Against Housing Provision in Nigeria Macro economic and political 1. High inflation rate environment 2. High interest rates 3. Low per capital income 4. Low investment in housing over the years 5. Low priority given to housing by successive governments 6. Land tenure and ownership 7. High population growth and increasing urbanization 8. Lack of adequate regulation and legislation for housing Building materials and costs 1. Lack of acceptability of new construction practices 2. Choice of technology 3. Resistance in accepting new materials 4. Preference for imported materials which are expensive 5. 5. Lack of adequately qualified construction managers and skill artisans Finance 1. Lack of adequate and appropriate financial products especially for low income households 2. Lack of adequate financial support from government, banks and other financial institutions Table 2: Trends in the Costs of Building Materials, Average Cost of 3-Bedroom Bungalow and Minimum Wage of Nigerian Public Servants. Period Cost of Cost of Some Basic Building Materials Average Land/M2 in Cost of 50kg Bag Reinforceme 225 mm Asbestos Lagos Suburbs 3of Cement nt/Tonne Block Roof (N)/% Bedroo (N)/% (N)/% (N)/% Sheet/Sheet m (N)/% Bungalo ws (N)/% 1979 1989 % Increase (’79 –’89) 1999 % Increase (’89-’99) 2004 % Increase (’99-2004) 2011 %Increase (’04-’11) 2.00 8.00 300% 300.00 3,650% 1,000.00 233.33% 3,000.00 200% 3.00 35.00 1,066.67% 500.00 1,328.57% 950.00 90.00% 2,400.00 152.63% 300.00 6,000.00 1,900% 32,000.00 433% 95,000.00 196.88% 180,000.00 89.5% 0.35 3.30 842.86% 39..00 1,081.82% 85.00 117.95% 150.00 76.5% 5.00 26.50 430% 291.00 998.11% 850.00 192.10% 1400.00 647% 6,000.00 25000.00 316.67% 900,000. 00 3,500% 2,000.00 0.00 122.22% 3,500,00 0.00 75% Minim um Wage Trend of Public Servan ts (N)/% 250.00 250.00 0.00% 3,500.0 0 1,300% 7,500.0 0 114.29 % 18,000. 00 140% ©Society for Business and Management Dynamics