Affordable Housing Does Not Mean Substandard Housing

NMRC Visits The Federal Mortgage Bank Of Nigeria
September 9, 2016
NMRC Holds Its 2nd Annual General Meeting: Reports Profit of N482 Million in 2015
October 24, 2016
Affordable Housing for all Nigerians was at the core of the discussions at the recently concluded 32nd Annual General Meeting of the African Union For Housing Finance (AUHF) co-hosted by the Nigeria Mortgage Refinance Company (NMRC) which held at the PTDF Center, Abuja from September 14-16, 2016

The event was attended by several industry players and stakeholders, including the Ooni of Ife, the CBN Governor, Honorable Minister for Power, Works, and Housing, Babatunde Fashola (SAN)

In his opening address, the MD/CEO, NMRC, Prof. Charles Inyangete said ‘There are serious concerns about affordability and the real challenge is to get the solution to what is affordable as affordable housing does not mean substandard housing”

“We need to address both affordability and accessibility together. We do not only need to sustainably build affordable housing, we also need to create an access to that housing”

Also speaking at the event, the CBN Governor represented by Mr. Ahmed Abdullahi, a Director with CBN, said “if the housing sector can contribute over 80 per cent to GDP in the United States of America (USA), it can also be used to improve the economy significantly.”

Continuing, he said: “If you look at the housing market in Nigeria and in Africa, compared to the more developed economies, you will find that the housing markets in Africa are indeed largely underdeveloped.”

“The contribution of the housing market to the GDP in Nigeria is less than 1 per cent, compared to that of the U.S, which accounts for over 80 per cent.

According to him, most of the liabilities in the banking sector are short-term liabilities, which often times are not used to finance mortgages.

Another impediment to housing development, he said, is the high cost of procuring basic building raw materials, adding that housing becomes inaccessible to the average Nigerian because of the cost of building materials.

Also in a remark, the Director the Public Private Partnership (PPP), Mrs. Eucharia Alozie, who represented the Minister of Power, Works and Housing, Mr. Babatunde Fashola, said from inception of government initiative in organised housing finance system till date, only a merger sum has so far been injected into the system.

According to him, “Despite the challenges that housing delivery has encountered in the county over the years, the renewed vigour and policy re-orientation of this administration have set the agenda for housing revolution.”

“In this regard, the ministry has produced six designs of one-bedroom, two-bedroom and three-bedroom flats, bungalows and condominiums that will represent the Nigerian house, which responds to our cultural diversity.”

Adding that “To make the housing sector attractive, viable and stimulate growth, the present administration plans to de-risk lending to approved housing developers. This will entail the government providing guarantees and other credit enhancement to developers.”

“Government, therefore, plans to issue promissory notes to reduce the developers’ financing requirements and recognises that the provision of leverage and guarantees are critical in attracting private sector funds into the industry.”

In closing, Prof. Charles Inyangete promised a commitment of NMRC to its vision to be the dominant housing partner in Nigeria, by providing liquidity and access to affordable housing finance in the country