17m Housing Deficit: Developers to Assist Buhari’s Administration with 1m Units Yearly
in Abuja The Real Estate Developers Association of Nigeria (REDAN) have pledged their commitment to assist the in-coming government of Maj. Gen. Buhari actualise the All Progressive Congress (APC) housing manifestoes to deliver one million housing units annually before 2019.
He commended President Goodluck Jonathan for setting up the Nigerian Mortgage Refinance Company (NMRC) and recognising the role of professional developers as catalyst in using housing to solve the country’s unemployment crisis. Pledging the support of the association in Abuja over the week end to the incoming administration, the new President of REDAN, Rev. Ugochukwu Chime, said the association has towards this end set up a strategic committee to work in collaboration with the World Bank and other international financial agencies to bring the lofty idea to fruition. According to him, the presentation of 6 percent to the Gross Domestic Product (GDP) is unacceptable, adding that the target of the professional in conjunction with all the relevant stakeholders is a target of 30 percent, as it is the case in United States of America and South Africa. He said Princes Seyi Lufadeju, who was a former Managing Director of Shelter Afrique, heading the strategic committee has been mandated to hit the ground running. He said: “REDAN together with international financial organizations is poised to work with the in-coming administration to actualize the All Progressives Congress manifesto to build one million houses annually between 2015 and 2019. Already the position paper shall be presented to government by the committee that has charted a road map for the actualisation.” According to him, substantial progress has been made by the World Bank Fund Guarantee Scheme (FGS) which laid down the requirements expected of developers during the sensitization workshop held in different parts of the country. He said: “What we have done with the World bank on the issue of housing delivery is to first of all carry out the various seminars so as to sensitize the developers through a bottom-up approach and the buy in expected of members in the project.” According to him, REDAN has also started discussion with the Federal Ministry of Finance to intervene in housing development through the establishment of a construction bank that would help in drastically reduction of the 17 million housing deficit. Chime said: “Hitherto therefore we have recognized that every effort being made by government is geared towards mortgage to provide funds for those who would like to buy houses. Unfortunately, these houses are not available because of the law of supply and demand which makes the cost of houses to be on rise. “He however added that the construction of the bank will operate as counterpart for the existing mortgage institutions, adding: “Already we are working with the Federal Mortgage Bank of Nigeria (FMBN) an institution with a balance perspective to the issue of housing, in the sense that they provide construction finance through the Estate Development Loan (EDL) and at the same time provide mortgage finance tying it up to make sure that the Nigerian masses who are contributors to the National Housing Fund (NHF) have the needed capacity to have houses produced through EDF and purchase those houses via the mortgage system which may be up to years mortgage at 6 percent. Also speaking at the sideline, Lufadeju said the meeting between REDAN and the bank on the guidelines for accessing the construction finance has commenced adding that some of the measures are to ensure that global best practices and standard are met in housing delivery across the country. He said: “The financial support from the World bank will assist in no small measure in getting more houses for the masses. Right now, we are sitting down with the World bank to work out the mechanism of how this will realized because this money cannot be allowed to go down after years of engagement and so therefore we want to work out a mechanism that when the money is disbursed and the guidelines to be followed across the country.