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1.1 BACKGROUND TO THE STUDY
Housing shortage is one of the most serious developmental challenges presently confronting Nigeria. Stakeholders and industry operatives in building technology are unanimous in their opinion that the process of housing delivery in Nigeria needs a change of strategy. In this study, the researcher is examining modern ways that could be explored to meet the nation’s housing deficit which stands around 17million units (Akeju, 2012).
Although Nigeria with a population of over 160 million people has been identified as the largest market in Africa for everything, including real estate, growing demand for decent shelter has continued to meet leaner supply of housing units.Over the years, successive governments in the country had tinkered with policies in a bid to achieve its mass housing objective but due to lack of reasonable commitment to it, achieving the goal has remained elusive (FRN, 2007).
Experts who gave analytical insight into the problem of housing delivery in Nigeria called for a declaration of a state of emergency in the housing sector, saying innovative thinking and modern strategies could bring about better outcomes that will enhance housing delivery process in the country. It is a known fact that financing of housing projects remained one of the biggest problems in the sector that is militating against housing delivery. Akeju (2012) is of the opinion that the major issue in housing delivery is funding, getting appropriate funding. There is money flowing everywhere but the right type of money needed for long term project like housing is not available. Something that can really work for affordable housing can be akin to what the Federal Mortgage Bank offers which cannot go round.
Modern strategy in housing delivery in Nigeria will reiterates the government’s priority to tackle overcrowding and the ambitious target to reduce severe overcrowding in rented housing apartments (Bush, 2004). Alongside making funding available for larger homes, with at least higher number of bedrooms, and a long-term commitment to deliver the familysized affordable homes should be identified in a strategic plan for housing delivery (Easton, 2006).
There are many strategies needed to facilitate massive housing deliveryin Nigeria but modern and technologically-inspired large scale housing schemes – schemes and sites with thousands of housing units could play a significant role in the delivery of the large number of houses the Nigerians needs.Theexperience of the last 20 years suggests that the level of demand for new homes over the next decade will not be met by piecemeal incremental developments.
In Nigeria today, there is a shortage of housing for low-income earners and constantly growing housing demands (due to increase in population) that are not met. Unfortunately, banks are reluctant to provide mortgage facilities to low-income earners. In order to solve the housing/mortgage challenges faced by the Nigeria populace, the Nigerian Mortgage Refinance Company (NMRC) was established to promote home ownership and increase the availability and affordability of mortgage loans to Nigerians.In spite of the incorporation of NMRC in June 24, 2013, not much has changed. The apathy of banks towards mortgage transactions still lingers, understandably, because of the risk of default. To buttress this, 66,402 Nigerians applied for mortgages during the recent Nigerian Housing Finance Programme. Only 10,000 Nigerians were selected. However, the interest rates by primary mortgage institutions that participated in the programme were alarming (14.5% -19%).It is suggested that a cue be taken from other countries where the cost of mortgage for first time home buyers are low, with small down payments and easy terms especially, a single digit interest rate.
1.2 STATEMENT OF THE PROBLEM
The problem of housing delivery is of great concern in many countries. This problem is especially prominent in Nigeria. The challenge as been magnified as a result of a myriad of issues, not least, a high population growth rate, shortage of necessary skills and disintegrated supply chain. There is need for Nigerian government and stakeholders in the building industry to rise up to housing needs of Nigerians in quality and quantity. Some researchers has advocated other modern methods of construction like dry construction has strategy to mass housing delivery. However, the researcher is examining how modern strategies can be used to ensure that the housing need of Nigerians are met.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the modern strategies that can be used for effective housing delivery.
- To determine the effect of modern strategies on housing delivery in Nigeria.
- To analyze the factors hindering the use of modern strategies in housing delivery in Nigeria.
1.4 RESEARCH QUESTIONS
- What are the modern strategies that can be used for effective housing delivery?
- What is the effect of modern strategies on housing delivery in Nigeria?
- What are the factors hindering the use of modern strategies in housing delivery in Nigeria?
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
- Outcome of this study will educate stakeholders in the building industry, government and policy makers on the modern strategies that can be used to solve the problems of housing deficit in Nigeria.
- This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on appraisal of modern strategies for housing delivery in Nigeria will cover all the effort and approaches of past and present government of Nigeria at tackling the problem of housing deficit in Nigeria. It will also cover the new approaches and strategies that can be used for mass housing development.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
Akeju, A. A.(2012). Challenges to providing affordable housing in Nigeria. Proceedings of 2nd Emerging Urban Africa International Conference on Housing Finance in Nigeria, Abuja, Nigeria. 17-19 October, 2007.
Bush, A. (2004) Understanding Stabilized Earth Construction. Virginia: VITA Publication Technical Paper No 2. Retrieved on July 7, 2007 from http://sleekfreak.ath.cx:81/3wde/VITAHTM/ SUBLEV/ EN1/STABERTH.HTM
Easton, D. R. (2006). The Rammed Earth House. White River Junction, VT: Chelsea Green Publishing Company
FRN (2007). Federal Republic of Nigeria Official Gazzette Vol. 94, No 24.
UNDP Human Development Report. Oxford University Press, Oxford 1999.
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