Providing the enabling environment and implementing policies that will drive housing sector growth is the responsibility of any government. However, a number of existential factors make it difficult for some states in Nigeria to rise up to the task. It is therefore important to identify states that are swimming against the tide in order to reduce the country’s housing deficit which many sources put at about 17 million.
Vested with the constitutional powers to administer lands, state governments have an enormous responsibility in ensuring that the problem of land access is resolved. There are other issues around mortgage foreclosure, ease of doing business, enabling infrastructures and many more that are before state governments.
We shall therefore take a look at some of the states and their governors who are demonstrating genuine interest in solving these problems.
Kaduna state
The intervention and determination by the Kaduna state government to address its housing deficit and enable ordinary people in the state to access decent housing has placed it above many states in Nigeria.
With recent interventions, the state provides free land for housing projects, processes land titles promptly to attract private investors.
This sort of environment has brought a lot of investments and progress in the state. Recently, Nigeria Mortgage Refinance Company Plc (NMRC) signed an agreement with the Kaduna State Government (KDSG) and FHA Mortgage Bank to create a novel Mortgage Blended Initiative aimed at mortgage creation and refinancing at single digit with an initial Mortgage Interest Blended Rate Investment of N3 Billion.
The State Governor, his Excellency Mallam Nasir El-Rufai, after signing the agreement stated that the State had gone further to enact the Landlord and Tenant law that encourages, empowers and protects property owners and investors, in addition to the creation of a Mortgage and Foreclosure Authority as well as the passing into law of the Mortgage and Foreclosure Law (MMFL) in Kaduna State.
The state has established the Kaduna state mortgages and foreclosure Authority since 2017 to regulate mortgages, foreclosure and enforcement of real property and connected purposes, becoming the first state to domesticate the mortgage foreclosure law in Nigeria.
Federal government housing institutions like the Federal Mortgage Bank of Nigeria and the Family Homes Funds currently have projects – some already completed in the state – to provide affordable housing for low to medium income earners.
Lagos state
Lagos is definitely one of the frontline states in Nigeria, and even though there is more to be done, one can recognise ongoing initiatives in the state.
Recently, the state showed commitment to sanitise and regularise real estate sector and practise in the state, as well as to embrace digital approaches in solving housing problem in the state.
Lagos state estate agency regulatory authority recently held the real estate stakeholders’ engagement forum organized to regularize its real estate sector, sanitize it and boost investors’ confidence.
The event is a collaboration between the state government and real estate stakeholders to look into the sector critically to resolve ongoing challenges. Some of the outcomes includes the establishment of a digital platform top register all actors and their transactions in the housing space.
Many have lauded Lagos state for the initiative which signals a commitment to housing sector and proves their willingness to partner with the private sector to develop the real estate sector.
Though not an affordable housing project, Lagos state is also building an entire city out of reclaimed land. Eko Atlantic City is one of the most ambitious real estate development projects ever undertaken in Africa – a megacity that will provide new homes for 250,000 people and office space for another 150,000 people, simultaneously protecting the coastline and solving Lagos´ chronic shortage of quality housing.
It is being constructed on land reclaimed from the ocean adjoining Lagos´ Victoria Island district and the Phase 1 area of Lekki, and covers around 10 million square metres (10 square kilometres).
It is planned to have a positive environmental impact, as it will help stop the erosion of Lagos State´s coastline, though there are criticisms, with some alleging that construction is encouraging storm surges. Private companies and investors are providing the funding, while Lagos State Government is a strategic partner, with the support of the Federal Government.
Borno state
Ravaged by militant group, Boko Haram, Borno state has a big task ahead in providing shelter for persons whose villages have been destroyed and displaced by the terror group. The task is huge, but the state has started something worth noting.
Federal Government social housing scheme, Family Homes Funds have signed a landmark agreement with the government of Borno state to build at least 1700 homes for civil servants on low income and another 3200 for Internally Displaced Persons (IDPs).
The agreement which was signed this year will mark a new beginning for the state which has been largely devastated by the Boko Haram insurgency, leading to the destruction of at least 1 million homes.
According to the Governor of Borno state, Professor Babagana Umara Zulum stated that the massive project that will benefit both IDPs and civil servants, and with a loan repayment plan of up to 25 years for civil servants.
Speaking on the project, the MD/CEO of Family Homes Funds, Femi Adewole also expressed his satisfaction with working with the Borno state governor and his government whom he said has a pedigree that gives them assurance that this is not just a paper signing ceremony.
‘’We are delighted about this partnership with the Borno State Government which will provide much needed homes for 3200 internally displaced persons and 1700 civil servants on low income. With a total investment of about N15 billion this partnership will be making a difference in the lives of some of the most vulnerable people in our society and giving them hope and opportunity to participate in viable economic activities.
‘’We are also delighted to be working with a trusted partner. Probably unknown to many, His Excellency has personally overseen the completion of over 20000 homes. His active commitment to this project leaves us in no doubt that the homes will be completed to good quality within the agreed 18 months period.
‘’Both parties are going to work hard to deliver on this commitment and bring hope to about 4900 families. With unit costs starting from N1.8m this is part of the Government Social Investment Programme committed to improving the quality of life of Nigerians. This will also improve the local economy through creation of jobs.
‘’We are doing two things. First, we are providing construction finance to ensure that the beneficiaries get their houses, on the back of that we will be providing the individual civil servants with homes loans assistance to ensure that they can afford the purchase of those homes for a figure that is no more than a third of the salary that they earn, and depending on individual circumstances, the tenure of that financing will stretch up to 20 years.
‘’We are happy because up to 3200 people whom have been living in tents will now have a home that they can call their own which is safe and secure.
‘’We have worked with the government to provide the initial financing, the government will transfer these homes for free to the IDPs. So this is a significant initiative by the state government and they will pay back over an extended period of time which is up to an average of about 15 years,’’ he said.
Delta state
In partnership with Family Homes Funds, Delta state recently completed an affordable housing project financed.
The affordable housing project financed by Family Homes Funds in partnership with Delta state government is made up of 650 housing units for low income earners, and consists of one, two and three bedroom bungalows with all necessary facilities for home functionality. The estate has adequate access to water supply, power, security and good road network.
Built with high quality and sustainable materials, the houses are structured in ways that give each owner and his or her family a decent living space and some sense of privacy.
According to the MD, Femi Adewole, the estate is built in a fast developing and serene area with a lot of greenery. It represents the Funds’ vision to not only build houses, but to build ones that are healthy to live in and affordable for the owners.
Adamawa state
Also in partnership with Family Homes Funds, Adamawa state is currently building 2000 Housing Projects in Adamawa for Civil Servants and Internally Displaced Persons.
The state signed a deal worth up to N8.3 billion with Federal Government social housing scheme, Family Homes Funds to provide the 2000 affordable homes.
In addition, Family Homes Funds will also provide financing through the Help to Own (HTO) package to make it easy for civil servants and others to purchase these homes.
For all projects undertaken by Family Homes Funds, the critical element of its execution includes the provision of jobs, hence, it is also important to note that these 2000 homes mean at least 6000 jobs for direct and indirect labour forces in the state.
Through the scheme’s Help To Own package which will be part of this project, the 2000 HTO loans mean at least 2000 mortgages treated, making it very easy for the beneficiaries to own a decent home at the most affordable rates and conditions available in the country.
As an all-inclusive project, Family Homes Funds is developing the project in a way that Internally Displaced Persons (IDPs) in those areas can resettle into normal living as well.
Enugu State
The Enugu state government is making inroads in the housing sector through Enugu State Housing Development Corporation (ESHDC).
The Enugu State Housing Development Corporation (ESHDC) is a Parastatal of the Enugu State Government owned 100% by it and is established by “Enugu State Housing Development Corporation Law” Cap. 58 Laws of Enugu State Government 2004.
ESHDC is one of the fully commercialized agencies of the Enugu State Government charged with the responsibility of implementing the State Government housing policy for all classes of people. However, the State Government appoints Board of Directors of the Corporation which usually consist of seasoned and accomplished professionals in the Housing, business and other related sectors of the society. The eight (8) member Board and the Management Committee of the Corporation sees to the policy formation and the day to day running of the Corporation as provided for in the Corporation’s Law, and as directed by His Excellency the Governor of the State.
ESHDC is not subvented by the State Government since it is commercialized, hence generates its own projects and funds same, conducts its business as to ensure positive returns, and to maintain the socio-economic and political outlook of the State Government.
Funds generated by the Corporation are geared towards provision of Houses, Estate Infrastructure and facilities; Maintenance of such Estates and facilities; the day to day running of the Corporation, and remittances to the State Government.
The agency has so far developed multiple housing estates like Valley estate, G.R.A., Enugu, Citadel estate phases 1 & 2, Enugu Rangers estate 1, Enugu rangers estate 2, WTC estate, Transparency estate, Zoo estate, Liberty estate, Golf estate and other critical living infrastructures in the state.
Edo state
In Edo state, the Edo Development and Property Agency (EDPA) is the designated agency of developments in the sector.
Edo Development and Property Agency (EDPA) is an arm of the Edo State Government charged with the responsibility of meeting the housing needs in Edo State. They facilitate the construction and provision of affordable housing in the state in partnership with the private sector.
Impressive strides began at EDPA with the overhaul of the agency, with the re-enactment of its law in 2018; the development of Emotan Gardens Estate in partnership with Mixta Africa and the recertification of owners of the different estates controlled by the agency.
The Agency’s CEO, Isoken Omo, was adjudged the best female Chief Executive Officer (CEO) of state-owned housing agencies in Nigeria at the Abuja International Housing Show in July this year.
According to her, the EDPA is now well-positioned to act as a private-sector facing agency, with a mandate to attract investment in the state’s housing sector.
She said that the Emotan Gardens will address housing deficit in the state.
“In the last few months, we have embarked on massive reforms in the housing sector, which have yielded positive results. Already we have completed the first phase of Emotan Gardens, which has sold out. We have also brought in sanity in the existing estates and have recertified property owners. We are also working on a mall in the Sopkonba Road axis of Benin city, with private partners. All these, I believe, are what we are being celebrated for at the show this year.”
Ogun State
In Ogun state, there is the Ogun State Property & Investment Corporation (OPIC) – a statutory corporation with a focus on the development of residential, commercial and industrial real estate hubs and new cities in Nigeria.
OPIC was established by Edict 10 of 1984 laws of Ogun State, Nigeria and by its mandate, it is empowered to create new towns and cities across Ogun state and beyond. Their development pipeline of finished and upcoming developments vary across locations and are designed to meet international standards.
As a result of their expertise and robust balance sheet, they have built a diverse portfolio of urban developments in both the residential and commercial sectors in Lagos and Ogun states.
OPIC provides services like Development of Residential Communities; Development of Commercial and Industrial Hubs; Development of Commercial Property Assets; Mortgage Advisory/Developer Loans; Real Estate Brokerage Services; Letting and Leasing Services.
OPIC is currently turning vacant lands into catalytic hubs. New makun city, Orange valley estate, Alamala new town, MTR gardens, OPIC Agabra/Igbesa estate, New dawn, OPIC Plaza, Magboro new town, Mitors residences and many more are portfolio projects completed by the agency.
It is also noteworthy that in 2017, the Nigeria Mortgage Refinance Company (NMRC) signed a landmark partnership agreement with the Ogun State Property Investment Corporation (OPIC) and Imperial Homes, TrustBond and Homebase mortgage banks. The signing ceremony was done at NMRC’s booth during the 11th Abuja Housing Show in Abuja. The partnership was an NMRC-led business driven market development initiative designed to boost the capacity of OPIC, to build more affordable houses.
Yobe state
Determined to address the 2.3 million housing deficits in the state, Yobe government has jump-started a new scheme, which would deliver 3,600 affordable units to the citizens of the state.
The scheme will be financed by Family Homes Funds (FHF) Limited, a subsidiary of Federal Ministry of Finance, at the cost of N10.83 billion.
The houses comprise two and three-bedroom apartments. Each three-bedroom unit will occupy 800 square meters of land; while the two-bedroom units could be built on 600 square meters of land.
Facilities expected under the scheme are schools, health facilities, and places of worship, police outposts, fire service stations, mini-markets and children’s playgrounds.
Governor Maimala Buni, who performed a groundbreaking ceremony along Gujba road, said the project is one of the development goals of the state government.
He noted that along with other human needs for clean water and sanitation, healthcare, security; shelter plays an important role in achieving peace and prosperity.
“This is why government; is keen to ensure on a continuous basis, that the people have access to safe and affordable housing,” he said, adding that payment of compensation for land acquired for the project would be settled by FHF.
“While values of acquired land from each beneficiary in each of 17 council headquarters; is currently being assessed for payments. We will work even harder; to ensure that more of our people can have access to houses at affordable rates.
He urged the State’s Housing and Property Development Corporation and Ministry of Land and Housing to effectively supervise contractors handling the housing project.
The governor believes that the local procurements could boost the economy with increased job creation in the building industry.
Nasarawa state
Given its proximity to Nigeria’s capital, Abuja, Nasarawa state’s housing sector is ever busy. Couple with multiple projects completed by housing organisations like Millard Fuller foundation (which recently completed the most affordable houses in Africa there), Family Homes has completed the construction of over 400 homes with an average cost of N3.5million in Grand Luvu, Nasarawa State.
There is still a long way to go in solving the housing deficit in Nigeria, but these are commendable efforts that can support the goal if sustained. On that note, the Abuja International Housing Show (AIHS) and leading housing advocacy, Housing Development Advocacy Network is currently seeking more information from the general public about other housing sector initiatives going on in other states that may not have been captured in this report. Such information can be sent to HousingAdvocacyNetwork@gmail.com.
