During a presentation to the national workshop of the Association of Housing Corporations of Nigeria, the MD of Family Homes Funds Limited, Femi Adewole revealed the approaches to building sustainable housing agencies that will solve the rental housing opportunity in Nigeria.
Making references to the Nigeria Housing Market, Adewole said that there is an increasing pressure due to increasing urbanization. Nigerian cities, according to him, are some of the fastest growing in the world. And over 80% of urban dwellers rent their homes from informal landlords – sometimes not out of choice.
‘’There are less than 100000 mortgage loans representing a small % of the population; Most of the new homes being built are unaffordable to people on low to medium income,’’ he said.
Speaking on the potential of Formal Rental Housing, he said there is significant demand with future growth envisaged as urban areas grow and mobility increases.
He also said there is low competition as most of rental housing available for people on low/medium income is informal, poor quality, insecure and unequitable.
In any case, he said there is a strong potential for creating long term financially sustainable housing organizations.
For those seeking long term sustainability, he advised them to take these vital steps.
‘‘The first step to Long Term Sustainability should be Feasibility, to ascertain whether it is right for you or not. Then plan for Change through Strategy Development, Organisational Change and other approaches. Do a Pilot of at least 500 units. Consult and Sell the Business Model, then from lessons learnt Scale Up, after which the Family Homes Funds will partner with you and where necessary provide technical support,’’ he said.
Family Homes Funds is a special housing intervention fund birthed through a partnership between the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority, leveraging its significant capital (in excess of N500 billion by 2023) to facilitate access to affordable housing for millions of Nigerians on low to medium income groups.
