The Trajectory, Prospects, and Challenges of Housing Affordability in Nigerian.

ESV Ugochukwu, Louis Nwaodu.

Nigeria’s housing crisis has been a persistent issue, with many citizens struggling to afford decent shelter. Despite government efforts, the dream of owning a home remains elusive for many. The country’s housing deficit is estimated to be massive, with many towns and cities facing significant challenges in providing affordable housing for their residents.

A Historical Perspective

The history of housing development in Nigeria dates back to the colonial era. The first recorded housing project, Bodija Housing Estate in Ibadan, was built in 1959 by the Western Region Government. The colonial era saw the development of European quarters, known as Government Reserved Areas (GRAs), which were occupied by colonial administrators and high-ranking Nigerian civil servants. These quarters were often secluded from the host communities and featured distinct architecture.

Next we have FESTAC Town: A Model for Affordable Housing. This housing estate was originally developed for the 1977 World African Festival of Arts and Culture, and is a prime example of affordable housing. The government sold raffle tickets for the housing units, which were allocated to winners at affordable prices. The town was designed to accommodate over 45,000 visitors and Nigerian officials, with 5,000 contemporary housing units spread across seven avenues. The allocation process was based on a raffle draw, with winners required to pay stipulated amounts of money to the government annually for 25 years.

After FESTAC Town, other housing estates were developed.  One of such is the highbrow 1004 Housing Estate made up of multi-storey condominiums.  It was commissioned at the outset of the Second Republic in 1979 to accommodate high-profile politicians and their families, given that Lagos was the Federal Capital at that time.

In the same Republic, the Lagos State government under Alhaji Lateef Jakande developed a couple of housing estates, including one in Iponri and the eponymous Jakande Estate in Isolo, which were low-cost housing schemes.

The Federal Housing Authority (FHA), established in 1973, continued to develop housing estates in different parts of Nigeria in the 1980s and ‘90s after managing the FESTAC Town allocations.  As a matter of fact, they continue to build estates till date.  

In time, a number of states also established housing authorities to develop estates in their towns and cities to accommodate their growing population.  The government also partnered with the World Bank Housing Finance Development Programme to build housing estates in several places in Nigeria and some of these estates are still being developed. 

One immediate observation from those examples are that several of the housing estates of the colonial times as well as those of the 1970s and 80s promoted shelter for low-income and middle-income earners.  However, in recent times, the estates being built in Nigeria are mostly elitist and, even when some of the homes are supposedly designated for the masses or mid-income recipients, they are usually beyond the income range of the average person or family and therefore beyond their reach. Educational institution campuses built before or shortly after independence also confirm the existence of boys’ quarters, which belong to the owners or occupiers of the main houses.  The same was true for many multinationals and big corporations in different Nigerian towns and cities, which came into existence between the colonial days and the 1980s.

Another observation is housing designs of the past included boys’ quarters where domestic staff of the owners were expected to occupy, but the practice today is that some landlords and developers rent out or sell the main houses separately from the boys’ quarters revealing a shift of focus to making more income and are unbothered about the living standards of intended occupants of such property.

The Challenges Facing Affordable Housing

Increase in the annual mortgage payments of residents over time due to inflation which made their previous payments look like paltry sums.  In the case of FESTAC Town, the residents took the authority to court and won. 

Today, the Federal Housing Authority’s estates are often sold at uncompetitive prices, making it difficult for ordinary citizens to afford homes. 

Land speculators and developers also drive up prices, further exacerbating the issue. Developers are businesspeople and so profit is their primary objective.  In some instances, they contend with land speculators whom they have to pay off, thereby increasing the eventual prices of land and buildings.

The government’s failure to provide affordable housing has led to a situation where many Nigerians are forced to build their own homes or rely on private developers. However, this approach is largely unaffordable for many, leading to a significant housing deficit. This has made incidences of building collapse directly proportional to the contravention of building plans. owing to the entrants of non professional in the supervision of construction of buildings whilst the housing authority officials look away because he who pays the piper dictates the tune.

The Role of Government

The government has a crucial role to play in addressing the housing crisis. Developing estates like FESTAC Town, with reasonable pricing and allocation criteria, can help make housing more affordable. The government should also curb the activities of land speculators, who drive up prices and make it difficult for ordinary citizens to afford land. Maintaining master plans and enforcing building regulations can also help prevent building collapses and ensure that housing developments are safe and sustainable.

Public-Private Partnerships

Public-Private Partnerships (PPPs) can also play a significant role in delivering affordable housing. By providing land or funding, housing agencies can partner with developers to build homes for the masses. This approach can help increase the supply of affordable housing and make it more accessible to ordinary citizens.

The Ingenuity of the Nigerian

Much as no individual, private enterprise, or Non-Governmental Organization can truly pick up the slack where government fails, Nigerians consistently try to show worthy examples by investing in projects that promote the common good.  In many Nigerian communities, across many sectoral divides, meetings are convened periodically to raise funds for building or rehabilitating schools, health care centres, or civic spaces plus the provision of potable water or other amenities, which are vital in the society. 

Since charity begins at home, people who can invest in communal projects will, undoubtedly, advance personal causes. Nigerians reckon that waiting for the government to provide housing for many of them is akin to Waiting for God to do it.  So, they acquire land and build houses themselves.

Some places, which were originally bushes and inaccessible because of the lack of motorable roads and other infrastructure, have been transformed into habitable neighbourhoods simply by one individual or a group of individuals purchasing land, clearing the bushes, and erecting buildings whilst others follow in their footsteps.

Also commendable is the trend in the last decade where large corporations such as staff of universities form cooperative societies, pool resources together, and develop estates of their own since the institutions lack adequate official residences to accommodate them and there are usually no spaces within the premises to erect new structures.  An example of this is the University of Lagos (UNILAG) Estate in Alaka, Surulere, and another one around Berger, just at the border between Lagos and Ogun States.

Panacea to Exorbitant Housing in Nigeria 

Statistics show that more than a half of the Nigerian population live in multi-dimensional poverty, the implication is that many people live from hand to mouth.  If people struggle to eke out livelihood, it means that house ownership is a distant reality.

Whilst the government strives to improve the economy and, consequently, the earnings and general living conditions of the people, simultaneously developing residential communities around the county will go a long way in alleviating the housing crisis in Nigeria.  

Erecting multi storey buildings with one-bedroom, two-bedroom, and three-bedrooms apartments is one way to cater for everyday people.  Importantly, criteria for their allocation must be impartial as was done in the instance of FESTAC town.  

Fixed, but reasonable pricing should be employed to prevent inflation from robbing beneficiaries of their hard-won accommodation. 

Sincere Government intervention to end the clandestine action of land speculators in order to protect citizens from their predatory activities.  It is not difficult to enforce the regulation that prohibits the activities of land speculators where they are sincere about their quest to provide an enabling environment for businesses and people to thrive.  

The integrity of the masterplan of an area should be largely maintained not just for aesthetics, but to prevent predatory activities of land grabbers turning originally intended residential plots commercial and further making affordable property within commutable distance available.

Similarly in the education sector, as private schools are an option for those who desire them, the Government should make priority and increase development of low-cost housing estates through the Federal Housing Authority and the various state housing corporations for its citizens as possible.  

The housing authorities should embrace Public-Private Partnerships (PPPs), which will deliver affordable housing to the population.  One way to achieve this is for the housing agencies to provide land for certified developers to build affordable housing.  The housing corporations as well as the Federal Mortgage bank of Nigeria should provide part of the funding for building the houses, thereby making them even more affordable whilst also increasing their stake in the projects.  

Just like many developers target the outskirts of towns where land is largely inexpensive, PPPs can be used in the development of new cities if the modalities are well-crafted, contracted and implemented.

On the way forward, Nigeria’s housing crisis requires urgent attention. The Government must urgently conduct a study to ascertain the housing gap and implement effectively the solutions proffered earlier to help alleviate the issue. The government must prioritize affordable housing and work with private developers to increase the supply of affordable homes. By doing so, we can ensure that every Nigerian has access to decent shelter, which is one of the basic fundamental human needs – One of the first lessons taught in school without which humans cannot function well or aspire for higher goals and objectives.

Ugochukwu, a registered Estate Surveyor and Valuer is a member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV)