Concerns as more households are seen falling into worse living conditions

Increasingly, concerns are mounting in many Nigerian households following analysts’ prediction that more of these households will fall into worse living conditions than what many have seen so far.
Today, Nigeria is struggling with an economy wreathing in a recession of the worst kind. The value of the local currency can only equal that of vegetable and inflation has hit the roof-top. Price of crude oil which is the mainstay of the economy has taken a plunge.
As a result, life and living in the country is almost a risk. Hunger is now resident in many homes and some households have been forced into unwholesome behaviours that find explanation only in recession-induced desperation, frustration and despondency. It is no longer news that pots of soup get missing in some kitchens if the cooks/owners are not watchful enough.
The McKinsey Global Institute, a global think-tank, had, a couple of years ago, said that by 2025, about 1.3 million households could fall into worse living conditions in Lagos, Africa’s largest city. Lagos is a microcosm of Nigeria, meaning that whatever happens in Lagos, directly or indirectly, affects other parts of the country.
But analysts are insisting that with the state of the economy, the recession and the clueless leadership in the country today, more households than McKinsey had estimated will fall into worse living conditions in the next five to six years, especially in the cities where rising costs and dwindling income are pushing more people out of the city centres to the suburbs where life is generally difficult.
According to the institute, the increasing un-affordability of housing is a growing challenge in Lagos and most other emerging economy mega-cities, explaining that, in some 240 cities with populations of more than two million, majority of households will not be able to afford standard housing units.
In Lagos, which is considered an extreme case, more than 90 percent of households are unable to afford standard housing units rates, thereby forcing them into informal and substandard housing. Nigeria has the third largest number of households living in substandard housing, estimated at 11 million households.
As time goes on in this country, unless something dramatic happens, it will be difficult to describe the kind of living conditions in which many people, especially city dwellers, will find themselves, because when households can neither feed nor afford a shelter over their head, their next destination is the bush or they may decide to constitute themselves into a nuisance for the discomfort of the larger society.
Demand for housing has dropped significantly because the concern of many households today is not how to buy property but how to eat and get well. Even at this, house prices are still high and unaffordable to those who truly need homes of their own. House suppliers are not forth-coming with new ones. Everybody is cautious, watching and waiting.
Though Lagos is trying to address the housing problem of its residents with the Lagos Home Ownership Scheme (LagosHOMS) of the past administration and Rent-to-Own housing initiative of the present administration, there is still affordability factor as the scheme requires a number of conditions to be met because transactions are made. Those who need housing cannot meet these conditions.
Also in an effort to address housing problem in the country, the Nigeria Mortgage Refinance Company (NMRC) was set up to provide much lower interest rates for housing projects. “The step we have taken is to create the enabling environment for primary mortgage banks and institutions to conveniently offer 20-year mortgages to the market since the ability of banks to deliver mortgage services is limited by the fact that 80 per cent of all banks’ deposits are for 30 days”, said former President Goodluck Jonathan who spoke at the launch of the company.
“The NMRC, in ensuring greater access to finance for longer tenors, will be key to accelerating the growth of the market for all income levels”, the former president added. But Nigerians are still waiting to see the purpose of that company as mortgage remains a mirage for home buyers.

CHUKA UROKO