Ex­pert prof­fers so­lu­tion to hous­ing deficit

Daily Trust - - PROPERTY - By Mustapha Suleiman

Mr Ha­keem Ogun­ni­ran, Man­ag­ing Di­rec­tor/Chief Ex­ec­u­tive, UACN Property De­vel­op­ment Com­pany has iden­ti­fied cum­ber­some Land Ad­min­is­tra­tion pro­cesses and non avail­abil­ity of af­ford­able and suit­able land as the ma­jor ob­sta­cle to hous­ing de­liv­ery in the coun­try.

He said in­tri­cate land ten­ure sys­tem which is in­com­pat­i­ble with hous­ing de­vel­op­ment as well as com­plex tra­di­tional land hold­ing sys­tems com­pounded by the Land Use Act have made it im­pos­si­ble for the coun­try to bridge its 17 mil­lion hous­ing deficit.

He said, “Each de­vel­oper is a mini-govern­ment - pro­vid­ing ac­cess roads, in­ter­nal road net­work, wa­ter and power in­fra­struc­ture. It’s im­ma­te­rial that a de­vel­oper has paid IDC, NIC, LUC and other taxes and levies.

“Build­ing method­ol­ogy is still largely con­ven­tional and tra­di­tional; not mech­a­nized.

“Build­ing ma­te­ri­als with min­i­mum lo­cal con­tent and sup­ply chain chal­lenges hin­der con­struc­tion de­liv­ery.

“Acute short­age of skilled ar­ti­sans such as elec­tri­cians, plumbers, ma­sons, tilers, car­pen­ters is an­other prob­lem.

“There’s limited stake­holder col­lab­o­ra­tion and harm­ful com­pe­ti­tion, in­stead of win­ning col­lab­o­ra­tion.

“Govern­ment in­sta­bil­ity. Re­vo­ca­tion of ex­ist­ing con­tracts, change of poli­cies, re­pu­di­a­tion of obli­ga­tions, etc.”

He called for a proper def­i­ni­tion of what is af­ford­able hous­ing within the con­text of min­i­mum wage in the coun­try.

“We should pre­pare a ro­bust de­vel­op­ment plan for roll out of af­ford­able houses over a pe­riod of 30 to 40 years and re­view it ev­ery five years.

“Over­haul the le­gal frame­work and Land Use Act which has no ma­jor amend­ment in 35 years.

“We should also cre­ate ef­fec­tive land reg­is­tra­tion sys­tem - Federal Govern­ment’s Pi­lot Scheme in Kano and Ondo States wor­thy of note.

“Stream­line the per­mit­ting and ap­proval pro­cesses. En­sure com­ple­tion of in­fras­truc­tural ser­vices in lay­outs be­fore sale or al­lo­ca­tion to de­vel­op­ers - or give ap­pro­pri­ate in­cen­tive to the de­vel­oper.

“In the as­pect of fund­ing, govern­ment should cre­ate the right plat­form for long term fund­ing for real es­tate projects - bonds, RI­ETs and other as­set-backed se­cu­ri­ties and en­cour­age re-in­vest­ment of prof­its in real es­tate to in­crease hous­ing stock.

“Al­low for tax hol­i­day for in­vestors in the sec­tor. In­tro­duc­tion of bet­ter­ment levy for im­prove­ment made in neigh­bour­hood to en­gen­der own­er­ship of schemes,” he said.

Snail House - Sofia, Bul­garia

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