WHAT HAS STOPPED YOU FROM BECOMING A HOMEOWNER THIS YEAR?
The International Human Rights Commission, IHRC, has lamented Nigeria’s growing number of homeless people, saying the country’s housing deficit now stands at 28 million.
Consequently, as part of its contribution to implement affordable housing which is an important component of the 2030 Sustainable Development Goals, SDGs, the IHRC has reaffirmed its commitment to partnering with the Federal Government on provision of affordable housing and mortgage reforms in Nigeria.
In similar vein, Bank of Industry (BOI) recently said that the amount required to fund the housing sector in Nigeria and bridge the estimated 28 million housing deficit across the country is N21tn, meaning a huge difference exists in what is and what should be.
The housing deficit might, amongst many other factors, be attributable to the large number of Nigerians who are considered poor and are therefore unable to buy or build a house of their own.
But let’s come to you reading this newsletter, you are probably not poor, atleast according to the World Bank’s definition of poverty. So why have you not bought or built your own house and in that way, reduce the housing deficit in the country?
Some experts point to the following factor as being obstacles to many Nigerians building their homes:
- Land Use Act: Purchasing land in Nigeria today that does not come with a Certificate of Occupancy (C of O) issued by the government puts you at a disadvantage since the title on the land may be subject to revocation without compensation. The Banks frown at such property titles and this inhibits access to loans or funding to develop such property. Sometimes, the cost of acquiring Certificate of Occupancy and the process involved may discourage some individuals or real estate developers, hence their inability to legitimately pursue the course of a building.
- Inadequate Infrastructure: Basic facilities such as good road networks, water supply, electricity, drainage systems, rail tracks and tunnels are still largely inadequate in many areas in Nigeria, which can slow down building efforts. Infrastructure has been known to drive development, among which is housing.
- Documentation Process: Some people find the process of documentation and property registration cumbersome making them to cut corners thus becoming a problem to housing development.
- High Cost of Building Materials: The high cost of building materials and how it affects property development cannot be overstated. Most building materials are imported leading to their high cost. The more expensive these materials, the harder it is for low income earners to purchase them. This translates to incomplete structures, substandard houses and high cost of rent which are all contributing factors to the housing problems faced in Nigeria.
- Poor knowledge of Mortgage facility: While the Federal Mortgage Bank loan has been available to Nigerians for several years now, many people still claim ignorance of the facility thus depriving themselves of opportunities to own their buildings.
Information, it is said, is power. We are PWAN STARS are happy to share with you, different ways in which you can become a home owner, in spite of the above listed challenges. Please let us know if you require any further details on how you can get started. You can reach us via our phone lines +234 (080) 5541-4019, +234 (080) 3965-0035 to get instant response to all your enquiries.