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How Tinubu can solve Nigeria’s housing affordability crisis —Expert
International housing finance specialist, Mr. Kunle Faleti, has suggested several solutions to address Nigeria’s housing affordability crisis. These solutions include easing supply constraints, promoting the rental market, investing in infrastructure, and utilizing abundant natural resources. Faleti also identified key factors contributing to the crisis, such as a depleted labor market, shortages of construction materials, and the worsening effects of climate change. His article aims to provide insights into addressing the severe housing shortage affecting millions of Nigerians.
“The ever-increasing housing costs are threatening the competitiveness of Nigerian cities,” he said.
To address the situation, Faleti said there is a need to ease supply constraints with the hope of lowering housing prices, pointing out that housing prices are high because the rapid increase in demand meets a sluggish supply response.
He said “Not everyone can own a home. The government should and must promote the rental market
Faleti emphasized the importance of focusing housing policies not only on enhancing homeownership but also on promoting other forms of tenure, such as rental housing. He also stressed the need for investing in infrastructure, particularly in affordable and efficient public transportation, which can reduce the demand for housing in urban centers.
Additionally, Faleti highlighted the significance of accurate data in developing better housing policies. Having access to precise data allows policymakers to make more informed decisions and address the housing affordability crisis effectively.
“Housing price is critical to urban development. Data is not collected systematically in cities.
“Policy makers, therefore, struggle to assess the magnitude of the problem and are unable to assess the impact of existing housing policies.
“Having robust data can offer relatively inexpensive options to improve the understanding of the housing and labour market.”
The affordable housing expert explained that the solution to material shortages is to go back to the basics.
According to him, instead of relying on a plethora of different materials, the nation can use abundant natural resources like wood and stone to build affordable housing.
Kunle Faleti, an international housing finance specialist, has proposed several solutions to address Nigeria’s housing affordability crisis. He suggests that President Bola Tinubu and state governors should focus on the following:
- Ease Supply Constraints: Simplify residential construction processes to clear supply chain backlogs and increase the availability of construction materials.
- Promote Rental Market: Shift the focus from homeownership to promoting rental housing as a viable tenure option.
- Invest in Infrastructure: Provide affordable and efficient public transportation systems to expand commuting options and reduce the need for urban center living.
- Use Abundant Natural Resources: Leverage Nigeria’s abundant natural resources to support affordable housing initiatives.
- Gather Accurate Data: Prioritize data collection and analysis to inform evidence-based housing policies.
Faleti believes that while progress may be slow, addressing the housing shortage is achievable through incremental steps. He emphasizes the importance of solving the housing crisis not only for individuals and families but also for the overall economy, as housing affordability impacts labor allocation and capital allocation in cities.
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Lagos schedules meeting with owners of distressed buildings.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
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FG threatens contractors over Enugu-Onitsha road delay
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
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Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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