‘Local govts should add to housing stock’

How would you describe the social housing programme of the federal government?The National Assembly is presently working on a bill that will give the framework for social housing. For now, social housing per se does not exist but housing schemes are going on in states that are providing for specific needs. The federal government stopped […]

How would you describe the social housing programme of the federal government?
The National Assembly is presently working on a bill that will give the framework for social housing. For now, social housing per se does not exist but housing schemes are going on in states that are providing for specific needs. The federal government stopped providing housing several years ago which in my view is a mistake.
Housing is so fundamental that government cannot hands off. It’s a basic necessity of life after food and clothing. Social housing can be done in various ways, you need to as a matter of policy identify who is entitled to social housing, these are the needy and those who cannot afford. Government should therefore tax the rich to provide for the poor because if you cannot provide for the majority, you cannot save the minority.

Is FG’s floating of a Mortgage Refinancing Company a good move?
It’s a good thing but social housing is much more than a mortgage refinancing company. How does the housing industry deliver through a cost efficient method at affordable price?
Secondly, what about the people with low income? What collateral are they going to use in obtaining the loan?  You have to have a scheme for all categories of people, temporary housing, old people homes etc. If you look at our history, in our Tudun Wadas and Sabon Garis people have been building room and parlour. These provide accommodation for the low income.
So housing is not only the mortgage aspect, there is the issue of land, technology, infrastructure, location and mortgage itself. Any housing provision without basic infrastructure will turn into squalor. And you need to have houses close to sources of transportation to and from work. And there has to be sustainability.

What about finance?
Yes, people have been contributing to the NHF [National Housing Fund]. What about collateral? There’re some unclaimed dividends and deposits, why can’t you bring them out in order to subsidize infrastructure and subsidize the cost of the house, cost of land, all those overhead costs, government can come in through subsidy, support of the building materials industry or customs waiver. That way, you’re indirectly supporting housing.
There is no state government that does not have a housing authority. Now the local government areas should be seen to be adding to the housing stock, identify developers, not the type in Abuja that are providing for the high income. Bring out layouts then come out with a policy on land allocation with specific needs such as the type of house to be built.

But do local governments have such funds?
The issue is that the amount of money they require, it is compensation issues, at their own pace and in a gradual manner even if it is 15 to 20 houses that they can build in a year, it is only a matter of time. Then at state level, any allocation of a parcel of land must be tied up with the production of a number of units say 15, 20 percent, targeting low income group and you define the type of houses and the cost, the social welfare scheme, identify them and tie them up to the allocation.
Then the issue of environment, the design should be energy conscious, the kind of windows, shading, the building mass, there is a way you can save energy cost. In certain places use solar panels in a sustainable manner that it can reduce cost of energy because cost of PHCN is increasing.
Another factor is location, you need self-sustaining settlements and because of the importance of commuting, to me the rail system going on presently is an opportunity for one to acquire land along those transportation corridors. That way it reduces burden on the roads.

What about the high cost of building materials?
In most cities around the world, houses are done out of bricks so we have to integrate with the local industry. In Nigeria, our brick industry has collapsed because of cost of energy and transportation. Energy, industrial fuel should be subsidized so that these industries can work.
Building with pre-fabricated parts could be used, then you can go high rise like is being done all over the world in order to maximize infrastructure and optimize the utilization of land. Even at the quarry site you can begin to establish a pre-fabrication site.
And then land speculators, they do nothing but sit and wait for the land to be subdivided, you need to remove them. Then the artisan angle, currently in Abuja you don’t have where you can train masons or carpenters. You could provide training programme in satellite towns where there is lot of development taking place. If you train them there they have a stake in it.
Finally, urban renewal, if you look at Abuja say Area 8, you see small buildings occupying a space 10 times their value. Government can come in with enabling law, take their land, build and give them back their property. And instead of a single bungalow you can go high rise and build many apartments.