How FG can achieve 50,000 new houses per year in Nigeria

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FOR the Federal Government to achieve its plan to build 50,000 new houses per annum, in the current challenging business climate, says a built-in environmental expert, Mr Sola Enitan.

According to him, one of the key considerations would include collaboration with private developers to share the burden of financing and implementation.

Other considerations , he said encompassed innovative financing models, prefabrication and technology.

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He urged that the government would need to explore low-interest funding sources, mortgage incentives and crowdfunding to mitigate the impact of high-interest rates in order to achieve the target.

“There is need to embrace modern construction methods, such as prefabrication and advanced technology, to enhance efficiency and reduce building materials costs,” he said.

On strategies that will make this happens, Enitan enjoined government to learn from past failures and implement robust regulatory framework, embark data-driven decision making and commence community engagement, among others.

He emphasised that government would need strengthen regulations to streamline the approval process, reduce bureaucracy and instill investor confidence.

According to him, government and stakeholders must utilize data analytics to identify optimal locations for housing projects, while ensuring alignment with demand and economic viability.

”Involve local communities in the planning process, addressing their unique needs and ensuring project acceptance,” the real estate expert said.

Enitan urged the federal government’s committee on affordable housing to develop a comprehensive urban development plan that integrates housing, infrastructure and amenities.

He told the committee: «Anticipate challenges and implement risk mitigation strategies such as currency risk hedging and long-term material procurement agreements.

“Strengthen the capacity of relevant agencies and professionals involved in project delivery.”

For sustainability of the programme, he tasked government on policy consistency, infrastructure development, land sovereign guarantee, land subsidies, and stamp duty waivers, among others.

He wants the central authority to maintain stable policies to build investor confidence and attract long-term investments in the housing sector.

Besides, he urged prioritisation of infrastructure development to support housing projects and create sustainable communities.

To further bolster the success of the housing development efforts, he advocated for a sovereign guarantee on land titles to instill confidence in investors and mitigate the risk associated with uncertain land tenure.

“Introduce targeted land subsidies to reduce the overall cost of acquiring land for housing projects, particularly in strategic locations.

“Implement a temporary stamp duty waiver on housing transactions to encourage property sales and stimulate the real estate market,» he said.

He also wants the federal government to introduce restrictive covenants on land titles to deter speculative transfer and ensure that land allocated for housing development is utilized for its intended purpose.

He called on the central authority to enforce forfeiture covenants in cases where land allocated for housing development is not utilised within a specified timeframe, saying this would promote efficient use of allocated resources.

“Simplify and streamline the process of transferring ownership within families (kin ownership) to facilitate smoother intergenerational transitions and reduce bureaucratic hurdles,” he said.

On high cost of building materials, The founder and managing director of Cromwell PSI Limited urged government to address the issue through strategic partnerships with manufacturers, subsidies, or importation incentives.

He said that government should simplify land acquisition processes and improve the efficiency of titling systems to reduce delays in project commencement.

“Facilitate easier access to affordable finance for both developers and potential homeowners.

“By incorporating these additional strategies, the Housing Reforms Task Teams can create an enabling environment for sustainable and inclusive housing development, addressing both economic and social dimensions,” Enitan said.