One of man’s most basic needs is shelter. Its availability is critical to the well-being of all humans, and its impact on individual health and productivity cannot be overstated. Unfortunately, access to affordable housing, particularly in cities, has largely remained an unfulfilled dream for the vast majority of the population, particularly the middle and lower classes.
Housing has remained an intractable problem in Nigeria, with deficits worsening over time and successive governments grappling with the issue since the country’s independence 62 years ago.
The country’s exponential population growth has exacerbated the problem, and it appears that the government has only scratched the surface; thus, its efforts in this regard appear ineffective. For example, the Federal Ministry of Works and Housing estimated in 1994 that five million housing units would need to be delivered by the year 2000, at a rate of 833,000 units per year, over a six-year period, to alleviate national housing problems. Needless to say, this policy was never implemented, and housing continues to be a difficult challenge.
However, housing shortages provide incentives for development and investment, particularly in low-income housing, because they have the potential to attract large amounts of unused or underutilized labor into production.
The country’s 18 million or more housing shortage provides enormous opportunities for investment, and if we act quickly, we will not only have substantially solved the problem, but we will also have succeeded in making the real estate sector contribute significantly to GDP, as it does in developed economies.
At the moment, statistics show that housing contributes a ridiculous 0.5% of Nigeria’s GDP, compared to 18%-20% in the United States of America and the United Kingdom.
To unlock the potentials in the housing sector in the future, Nigeria will require a Public Private Partnership (PPP) investment model. The country is in desperate need of efficient public infrastructure and services, as the country’s infrastructure gap is limiting housing’s full potential.
The first step is to expose the entire landscape and neighborhoods. Without a doubt, adequate infrastructure development, particularly a road transportation network, is the foundation of housing and long-term economic development.
The provision of road infrastructure that supports land use and population densities, which is mostly insufficient, is closely related to the challenge of regulation around land use, physical planning laws, and their enforcement. A good example is our major cities’ lack of adequate mass transit infrastructure. In recognition of this, the Lagos State government took the initiative; however, it is currently grossly inadequate and limited to a few areas within the city; however, when fully implemented, it will hopefully open up the suburb areas and access to low cost land, cut down travel time for commuters and decongest the city.
As a result, the BRT system in Lagos should reach every nook and cranny of the state, and it should be implemented across the country. With proper planning, the government can focus on road infrastructure, easing the burden on residential developers, and ensuring more cost-effective and affordable home development.
Any improvement in road infrastructure that makes places of work, study, and entertainment more accessible can be considered economic growth.
Road infrastructure development plays an invaluable role in housing; its importance in housing provision cannot be overstated and should not be overlooked. Infrastructure provision is not taken for granted in developed countries. A major contributor to Nigeria’s housing crisis is grossly inadequate primary infrastructure, particularly roads which accounts for a large percentage of housing costs because in most cases developers have to provide this and add to the cost of housing delivery.
In all of its components, the Nigerian housing sector requires active government participation as a firm enabler, not just a regulator. In order to advance the transformation agenda in the road sector and meet the public’s needs, the Federal Ministry of Works must embrace policy and institutional reforms that will pave the way for private sector financing of road infrastructure.
In the long run, this will encourage general economic investment and long-term housing development. The forward linkage effects would be increased employment, a stronger economy, and healthier living.
