N48.8tn investment needed for housing — Minister

An investment of at least N48.8tn ($300bn) is required over the next 30 years for housing construction costs alone in the country, the Minister for Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, has said.

Minister for Lands, Housing and Urban Development, Mrs. Akon Eyakenyi

Eyakenyi stated this in a presentation on ‘Affordable housing finance: The role of government’, at the World Bank and International Finance Corporation’s Sixth Global Housing Finance Conference held in United States between May 28 and 29. The presentation was made available to our correspondent on Sunday.

She said with a population of 167 million people, Nigeria remained one of the most rapidly urbanising countries in Africa, with rising housing needs.

The minister said, “From 56 cities in 1953; currently, Nigeria is estimated to have over 1,000 urban areas, with no fewer than 19 cities having a population of one million people and above. The housing deficit in the country is estimated at about 17 million units.

“About one million housing units per annum are required to achieve significant reduction in the national deficit and eventually eliminate it by the year 2043, at a unit cost of $10,000. This requires an investment of at least $300bn minimum over the next 30 years for housing construction costs alone.”

According to the minister, housing is universally accepted as the second most important human need after food; and the 1999 Constitution enjoins the government to provide suitable and adequate shelter for all citizens, to guarantee the wellbeing and productivity of the Nigerian people.

Eyakenyi said the most important constraint to adequate housing in the country was the lack of access to serviced and titled land as well as the absence of sustainable long-term housing finance.

“Accordingly, the removal of these two barriers is one of the most effective strategies for reducing poverty and achieving sustainable development. The shared prosperity agenda is about removing imbalances, ensuring equal opportunities, equitable and inclusive growth and enhanced security for improved quality of life and reduction of human misery,” she said.

Eyakenyi stated that the provision of affordable housing and urban basic services was a veritable policy instrument for ensuring that the prosperity of the society was shared more rationally and beneficially by the citizenry.

According to her, a little progress has been made through the approved National Policy on Housing and the National Policy on Urban Development of 2012, but a lot still needs to be done.

She said, “There should be a provision of a favourable macro-economic, political and social environment for both local investment and foreign direct investment, including incentives for cost recovery and repatriation of funds and profits.

“There should also be assistance to developers in the supply of unencumbered land and promotion of the use of alternative building materials and new technologies in housing delivery.”

Eyakenyi also urged the government to partner with strong and competent non-government actors for community mobilisation in the delivery of mass housing projects and ensure amicable resolution of conflicts.

Copyright PUNCH.