Issues around the challenges of acute housing deficit in Nigeria and beyond were the crux of discussion at this year’s Knight Frank Lagos Property Conference with the theme: Pragmatic Solution for Housing Delivery: Charting the Roadmap today in Lagos.
In his welcome address, Frank Okosun, Senior Partner/CEO, Knight Frank Nigeria noted that “It is no longer news that housing delivery costs are at an all-time high while financing options seem to shrink. This is all in spite of having one of the highest housing deficits globally. As such, and irrespective of the harsh economic times, those of us operating in the built environment must still find a way to deliver homes to Nigerians.”
“It is for this reason we are hosting this gathering, and with high-powered Speakers and panelists of astute professionals to rub minds and chart a path forward.” He added.
Setting the ball rolling, the keynote speaker, Mrs. May Abdel Hamid, CEO, Social Housing and Mortgage Finance Fund (SHMFF), Egypt, stated that, in order to achieve social justice, government must ensure that housing subsidy reaches the real needy people, stressing that, taking several income assessment validation tools will help in achieving that.
According to her, article (78) of the Egyptian Constitution stipulates that: The State guarantees citizens their right to adequate, safe and healthy housing, noting that, the constitutional obligation is the main reason for establishing the Social Housing and Mortgage Finance Fund to ensure that the right to housing is guaranteed and sustained.
While releasing the data that they used in Egypt as a model, she said; “Egyptian population reached 105 million till August 2023. Urban residents represent 42.9% of Egyptian population, while rural residents represent 57.1%. Annual demand for housing is 500,000 units. Real estate stock is 43 million units in Egypt. 19.2% average family spending on housing of the monthly income. 929K marriages in 2022. 90% of the existing housing are not registered.”
She further disclosed that, SHMFF is implementing a smart subsidy strategy through allocating (direct demand-side subsidy) graded according to beneficiaries’ incomes to improve transparency, purchasing power and access to finance. In addition, a mortgage interest subsidy is provided to encourage lenders to participate, reduce interest rate risk, and improve affordability for beneficiaries.
While reacting to the keynote speaker’s presentation, a panelist, Kehinde Ogundimu, CEO, Nigeria Mortgage Refinance Company said, one of the biggest challenges confronting housing in Nigeria is that of data and we are working on how to come up with a platform that will make data available for users in the real estate industry.
According to him, “currently, we are working with government agencies on data initiative because we believe that data is critical to this sector and collaboration is also key to that effect.”
Also speaking, another panelist, Uzoamaka Oshogwe, MD/CEO, Afriland Properties Plc, pointed out that, for many years, we have been talking about housing deficit in Nigeria, has anything changed? She asked.
Listening to the keynote speaker from Egypt she continued, you will appreciate the fact that, we have similar challenges with Egypt but, the difference is that, they have data which they used to solve part of their problems, while we don’t give data a priority here in Nigeria.
Proffering solution, she disclosed that it is for government to come up with policies to decide who qualifies for affordable home and who qualifies for social housing, adding that, these are the kind of things government need to take into cognisance so that housing units will not be going to the wrong people.
While responding to a question on creating a system that endures, she pointed out that government has to ensure it is enshrined in the constitution that housing is the right of every citizen because house is not a luxury but a necessity.
Another panelist, Shade Hughes, Country Manager, Mixta Nigeria stated that, the topic for today’s discussion is pragmatic solutions and we all know that, the issues are not new to us, noting that, the most important thing to do now is to come up with a strong and sustained political will backed up with policy.
The moderator, Hakeem Ogunniran, Chairman, LBIC Plc, said, according to the keynote speaker, it is obvious that Egypt has only one institution which is in charge of both the demand and the supply of housing needs. Then, a question arises on whether Nigeria should adopt that approach.
Responding, a panelist, Kehinde Ogundimu stressed that he believe in consolidation, but, it’s also important they give room for competition, noting that, government should instead of using the word subsidy come up with something like social investment fund where people who cannot afford houses will be given some kind of priority treatment.
Earlier, in his welcome address, Senior Partner/CEO, Knight Frank Nigeria, Frank Okosun who welcome participants at the conference disclosed that, “At Knight Frank Nigeria—your partners in property globally and in Nigeria—we take fiduciary responsibility for galvanizing the real estate, construction and finance sectors and ensure Nigerians do not only secure safe and suitable homes, but that they do so affordably.”
According to him, “from our early heritage of serving as Chartered Surveyors to the Lagos State Property Development Corporation (LSDPC) in the early 1970s to supporting and managing the development of Agbara Estate in the early 1980s—which houses well over a thousand residents—Knight Frank Nigeria has stood at the forefront of housing delivery in Nigeria, and we continue to do so.”
In his goodwill message, Hon. Moruf Akinderu-Fatai, Honourable Commissioner for Housing, Lagos State said; “I must note that the theme of this year’s Conference which is ”Pragmatic Solutions for Housing Delivery: Charting the Roadmap” is a very apt one. The world is evolving in a dynamic manner with factors such as population explosion and migration, new innovations in technology and climate change playing major roles in determining trends and developments.”
“Whether we like it or not, these factors will definitely shape our world over the next five years. At the level of Governance, they will impact on policy decisions and influence allocation of resources. At the investors’ level, these issues will impact the absolute and relative appeal of investment categories. Things will not remain the same as the interplay of these forces become more intense.” He noted.
