Bridging the Nigerian Housing Deficit through Public Private Partnership (PPP): The Developers Point of View

ESV Patrick Ogunjobi

There is no doubt about it that the Nigerian successive government in the past has made good efforts in addressing the Nigerian housing problems.  Since independence till date, every successive government has one policy or the other that is aimed at addressing the Nigerian housing deficit. Unfortunately, these housing policies aimed at addressing the Nigerian housing deficit have not achieved their aims of reducing the Nigerian housing deficit.

According to available statistics, the Nigerian housing deficit is put at 25 Million units, a sharp increase of over 15% from the January, 2019 data. Real estate industry watchers and analysts have argued that for the country to bridge the threatening housing deficit, Nigeria will require a whopping sum of N21 trillion naira. For a country with over 200 million people, this statistics is not something any forward thinking government should ignore as most economic growth and development are centered on real-estate through the delivery  quality housing for the populace.

The housing deficit is occasioned by a number of factors, prominent among them are, corruption, inefficiencies in mortgage lending, rural-urban migration, increased poverty, overcrowded cities, and obvious lack of encompassing housing policies by the government at all levels.

If the past and successive government policies were successful, and targeted at improving the wellbeing of Nigerians, why this growing statistics of housing deficits in the African most populous country?  In Nigeria today, there are more expensive properties in the market that are due for rent and sale, and this is the worst aspect of the whole scenario, availability of housing without the disposal income to occupy them. One of the major challenges developers are facing today, is the problem of developing houses at a very high rate that is economically priced beyond the reach of so many Nigerians.

All over the World, Public Private Partnership (PPP), is the measure being adapted to bridge housing and other infrastructural deficits. Simply defined, PPP is the collaboration between the government and the private sector enterprise(s) on large scale projects. The aim of this is to bring expertise, entrepreneurial skills, efficiencies, and the well withal needed to execute the project from the private sector. It is a known fact all over the world that the primary role of government is to provide the congenial environment for businesses to thrive, not embarking on multimillion projects as being seen in Nigeria today.

In my opinion as a leading Nigerian property developer, Public Private Partnership (PPP) is the economic and efficient way to go in a bid to bridging the gap of the Nigerian housing deficit.  With PPP, corruption is highly reduced, word class housing units will be provided and many private sector brands will be willing to participate. Advanced technologies will be deployed in housing development, private funding of projects is encouraged.  This is not to say that there are no down side of PPP, irrespective of how is structured.

With strong and well cut out collaboration between the Nigerian governments at all levels, the private sector, including foreign investors can bridge the housing gaps in Nigeria. Professional bodies in the built environment can play a pivotal role in this regards. They will not only act as knowledge partners, but also help to mobilize the human capital needed for the housing projects.

At present, Patrick Ogunjobi & Company, a leading firm of Estate Surveyors and Valuers, with specialization in property development is developing a mega project with the Lagos State Government through the Lagos State Development and Property Corporation. The project is located in the highbrow area of Victoria Island, Lagos State.  The Garnet Residence is a premium affordable residential development that encompasses detailed modern housing need of Nigerians. This project is an example of PPP that should be emulated by the government at all levels. With good PPP, the housing deficit that is plaguing the Nigerian state will be reduced to the barest minimum. 

ESV Patrick Ogunjobi, a registered Estate Surveyor and Valuer, he is the Lead Partner at Patrick Ogunjobi & Co, a leading Firm of Estate Surveyors and Valuers with specialisation in property development. He sends in this piece from Lagos, Nigeria.