Why real estate has failed to drive Nigeria’s economy, by experts

The Nigeria’s real estate sector has the potential to drive the nation’s economy, but this has not been possible owing to numerous problems limiting the growth of the industry.

The observation was made in Lagos at the weekend by Afolabi Imoukhuede, CEO, MCS Consulting, and Adesina Fagbenro-Byron, DFID-South West, at a wrap-up seminar of Growth and Employment in States (GEMS) programme intervention activities in the housing market.

Presenting the report of GEMS2 programme intervention activities, Imoukheuede said, “With Nigeria’s profile as Africa’s most populous nation and huge resources, Nigeria’s real estate has a capacity to drive

Thugs on Monday allegedly stopped the planned sitting of Rivers State House of Assembly members from both camps in Port Harcourt.

Last week Thursday, police dispersed 22 lawmakers with teargas, who tried to sit following a court order on Wednesday that nullified the appropriation of the Assembly’s functions by the National Assembly.

It would be recalled that the economy if opened up for investment and exploration. The potentials are hindered by a multiplicity of problems ranging from lack of access to affordable land and land tilting challenges, low penetration of mortgages, lack of affordable building construction solutions and technology, lack of access to reasonable financing products, insufficient housing market delineation and coordination, lack of effective housing policies as a result of a huge disconnect between the industry operators and policy makers, making the industry amorphous, uncoordinated and unpredictable.”

Imokhuede noted that the challenges had resulted in the high cost of home delivery as a result of high input costs.

He emphasised that for sittingNigeria to meet the expected 44 million housing deficit by 2020, the country needed about 2,600,000 homes a year.

The consultant urged government and operators in the sector to ensure that “housing becomes available within the reach of all income groups, particularly that of the lower to medium income groups.”

According to him, “Homes should no longer be the purview of the rich and wealthy as it is now, but that every Nigerian across all income strata should have access to decent homes.”

In his opening remarks, Adesina Fagbenro-Byron, DFID-South West, who was represented by Margaret Fagboyo, said, “In Nigeria, the demand has grossly outweighed the supply. The Nigerian market has been unable to meet the growing demand to supply housing at affordable prices…. This inadequacy in supply of housing has greatly increased demands on the private and social rented sector, and in worse case scenarios, it has increased homelessness.”

Fagbenro-Byron urged government to create an enabling environment by “enforcing property rights and ensuring the ease of land certification and transfers, enforcing foreclosure procedures/systems for mortgage lenders, ensuring the availability of credit information systems, and ensuring accessibility and transparent databases on housing transactions and prices.”

GEMS is a programme supported jointly by UKaid (the department for international development of the British government) and the World Bank.