Maduka Nweke

Participants at the webinar on Innovative Financing of Large Scale Affordable Housing in Nigeria organised by NISH Affordable Housing have unanimously agreed that providing housing to teeming Nigerians will go a long way in increasing the people’s standard of living. Variously, they agreed that housing is one of the most basic needs of humanity adding that beside satisfying shelter needs of the citizens, decent housing has multiplier effects on enhancing economic development, improving standards of living and well being of the people, reducing poverty, creating jobs, reducing incidence of diseases, and insecurity as well as beautifying and sustaining the environment. 

According to Yemi Adelakun, MD/CEO, NISH Affordable Housing Ltd, huge housing deficit exists in Nigeria, especially in the low and medium income range. He said that the Federal Government in its bid to reduce this deficit and direct response to the negative economic impact of COVID 19, recently developed an Economic Sustainability Plan should be proactive to issues bedeviling the real estate industry in the country.

Adelakun said that among other interventions of the Economic Sustainability Plan, the Federal Government proposed construction of 300,000 affordable housing units every 12 months.

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“Delivering affordable housing on a large scale and at the speed planned by government is hinged on success factors like land, technology, expert knowledge and skilled manpower, building materials, infrastructure and housing finance. The most critical and most elusive among these success factors is housing finance.

“Housing Finance is critical because it is required across the entire housing value chain, it is in short supply, and it is costly.  Housing Finance which is broadly categorised into construction and offtakers’ finance, has to be pre-planned and managed for effectiveness and efficiency. “The webinar today will focus on this critical success factor with the aim of recommending housing finance innovation that will engender effective, efficient and timely delivery of housing on a large scale and at affordable prices.

In his presentation at the event, Mr. Andrew Chimphondah, Managing Director, Shelter Afrique Group, noted that since its establishment in 1982, Shelter Afrique has been at the forefront and a pacemaker as far as investment in the real estate sector across member states in Africa is concerned. “To date, the institution has approved investments worth $1.174 billion, out of which, $178 million has been in favour of Nigerian counterparties. There is a Shelter Afrique Estate in Uyo, Akwa Ibom State, which was financed in 1999 to the tune of $2.5 million.

“Taking into account the exponential population growth rate in African cities and the ever growing need for decent and affordable housing in the region, there is a current deficit of 56 million units; Thereby the development and implementation of all-inclusive, sustainable and effective affordable housing delivery strategies become pertinent,” he stated.