How revised housing fund bill, technology will drive affordable housing-Experts

Property developers and housing industry experts have described the recent passage of the revised National Housing Fund (NHF) bill by the National Assembly as a positive development in the quest to tackle the perennial problem of sustainable housing finance. They also identified some technologies if adopted in Nigeria could be used to build affordable houses […]

Property developers and housing industry experts have described the recent passage of the revised National Housing Fund (NHF) bill by the National Assembly as a positive development in the quest to tackle the perennial problem of sustainable housing finance.

They also identified some technologies if adopted in Nigeria could be used to build affordable houses and reduce the housing deficit in the country.

The National Assembly recently passed the NHF bill and key provisions of the law include the mandatory 2.5 percent contribution of monthly income by employees in public and private sectors to be deducted and remitted monthly by all employers.  Contribution of 2.5 percent of income by self-employed individuals and 2.5 percent levy on cement, locally produced or imported among other provisions.

A housing industry expert and policy analyst based in Abuja Mr. John T. Ikyaave said the provisions contained in the bill are relevant and have enhanced the potential of the NHF scheme to increase access to decent, quality, affordable housing for Nigerian workers, especially those within the low- and medium-income brackets.

According to Ikyaave, the new NHF bill, which is now awaiting the assent of President Muhammadu Buhari, will support the provision of housing loans at lowest market interest rates of between six and nine percent which can be paid for periods of up to 35 years.

He said: “Currently, if you go to commercial or mortgage banks for a housing loan, the interest rate you will be charged usually range from 19 to 25 percent. Now, how many Nigerian workers can afford that? The NHF is the only institution that gives housing loans at single digit and for longer term of 35 years.

“A stronger NHF with robust financial inflows will have the capacity to extend its range of affordable housing solutions to more Nigerian workers and create wider impact.”

Mr. Ikyaave commended all housing industry stakeholders who contributed to the passage of the bill and urged President Buhari to see its merit and sign it into law to kick start a new phase in the provision of social housing in the country.

It would be recalled that the NHF was established in 1992 to mobilize funds for the provision of affordable housing for Nigerians. The National Housing Act 1992 outlined sources of funds for the NHF to include contributions by Nigerians in both the public and private sectors; investment in the fund by commercial and merchant banks; investment in the fund by insurance companies and financial contributions by the Federal Government.

However, in the over the 27 years of its existence, contributions from Nigerian workers have been the mainstay of the fund.

Lack of compliance to the provisions of the Act by commercial and merchant banks and insurance companies has affected its liquidity and capacity to create the required impact; a situation that gave rise to the review and passage of the new NHF bill by the National Assembly.

Meanwhile, civil engineers in the country have canvassed for the adoption of the `Expanded Polystyrene’ (EPS) construction technology in the country as one of the strategies to guarantee affordable housing in the country.

The News Agency of Nigeria (NAN) reported that Vice-Chairman of the NICE Mr. Emeka Ibe said during a recent visit by the institution to Monumental Works Ltd, in Lagos that the knowledge and usage of EPS, introduced about five years ago in the construction industry in Nigeria, was relatively low.

“Because of the economic benefits of the EPS, the Institution has deemed it fit that civil engineers should acquaint themselves with it as an alternative to the sand and cement blocks,” Ibe said.

Managing Director, Monumental Works Ltd., Mr. Ogundare Olufemi, said that the EPS, if adopted in Nigeria, could be used to build more affordable houses at lower cost, to reduce the housing deficit.

Olufemi said that EPS panel was cost-effective, and could save over 60 per cent of the cost of construction, compared to sand and cement blocks.

According to him, EPS panel is easy to install, and has speedy execution, such that construction of buildings can be completed within an interval of seven days.

“The most economic benefit of EPS is its lightweight, meaning that it does not exert heavy pressure on the foundation, that may cause a collapse.

“This implies that any building constructed with the EPS panel can stand the test of time.

“The material can be deployed in every housing development and environment, particularly earthquake-prone areas.

“It is strong and gives more security, unlike the sand and cement blocks, which can easily be pierced by a bullet from the robbers,” Olufemi said.