National Housing Policies and The Realisation of Improved Housing for All in Nigeria: An Alternative Approach

Introduction

Nigeria has faced significant housing challenges due to a rapidly growing population and ineffective government interventions. This document, "National Housing Policies and the Realisation of Improved Housing for All in Nigeria: An Alternative Approach," examines the failures of past housing policies and proposes a new approach that considers housing as a social responsibility rather than a market commodity. The study emphasizes the need for government intervention, a shift in focus from urban to rural development, and a holistic approach to addressing housing problems.

Past Government Interventions and Their Failures in Following Housing Policies

Historically, the Nigerian government has attempted to address housing shortages through both pro-socialist and pro-market approaches, often referred to as the orthodox approach5. These efforts included direct construction of housing units for subsidized rent and the provision of credit facilities to encourage private construction. However, these measures failed to meet the housing needs of low-income earners, with newly constructed houses often being purchased by higher-income individuals instead. As a result of dwindling oil revenues and pressure from international monetary organizations, Nigeria shifted towards a pro-market approach, reducing government involvement and selling off completed housing units. This led to the National Low Cost Housing Scheme (NLCHS) in 1980, which aimed to sell low-cost houses to low-income earners. However, these units remained unaffordable, and the scheme eventually failed. By 1991, the Federal Government adopted the New National Housing Scheme (NHS), which aimed to create an enabling environment for private sector participation. Despite these efforts, the NHS also failed due to a lack of profitability for investors and unaffordable mortgage rates for low-income earners.

Reasons for the Failure of Past Market-Based Efforts

Several factors contributed to the failure of past market-based housing efforts in Nigeria:

• Poverty: Housing programs failed to account for the low-income levels of the target population, rendering the houses unaffordable.
• High Cost of Housing Units: The cost of housing units was too high for low- and middle-income groups, who were forced to seek accommodation in slums.
• Lack of Access to Credit: Low-income earners were denied access to credit facilities due to stringent requirements.
• Low Incentive to Investors: The housing sector lacked sufficient incentives for investors, who preferred more profitable ventures.
• Cultural Factors: The preference for dual homes (one in the city and one in the village) and the desire for larger houses in rural communities reduced the demand for low-cost housing in urban areas.
• Poor Siting of Housing Units: The National Low Cost Housing (NLCH) programmes were located at the periphery of the cities, with inadequate infrastructure.
• High Cost of Building Materials: High costs of building materials made houses unaffordable.
• Dominance of Foreign Inputs: The reliance on imported construction materials contributed to high costs.
• Rural-Urban Drift: The continuous migration from rural to urban areas has led to increased pressure on housing infrastructure in the cities.

An Alternative Approach: Housing as a Social Responsibility in Following Housing Policies

The study argues that housing should be viewed as a social good and that government intervention is necessary to address housing challenges in Nigeria. The pro-market approach has proven ineffective due to the unique socio-economic conditions in the country, such as low income, weak purchasing power and high rates of poverty. The document suggests the need for a radical pro-market approach that tackles the root causes of the housing problem, particularly rural-urban migration, the underlying cause of the urban housing crises.

Key Components of the Alternative Approach for Housing Policies

• Decentralization of Government Institutions: To reverse the trend of rural-urban migration, the government should decentralize its ministries and parastatals from state capitals to local government areas.
• Provision of Housing and Infrastructure: Governments should provide office complexes and housing units in rural areas and offer them at subsidized rates31. Additionally, there should be necessary infrastructure to ensure the areas are attractive for investors.
• Legal and Regulatory Framework: Adequate frameworks should be in place to promote private sector investment.
• Alternative Building Materials: The use of alternative building materials and new technologies needs to be promoted.

Policy Implications and Expected Outcomes

The implementation of this alternative approach is expected to have several positive implications:

• Reduced Pressure on Urban Housing: The demand pressure on housing in cities will decrease33....
• Increased Demand for Rural Housing: Demand for housing and commodities in rural areas will rise, creating a market for the existing excess housing supply.
• Decline in Slums: Slums are expected to disappear as people relocate to rural areas or rent better-quality housing in the cities.
• Reversal of Rural-Urban Drift: By moving government institutions to rural areas, it is expected that this movement will reverse the flow of people from rural to urban settings.

By implementing the alternative approach and addressing the root causes of housing problems in Nigeria, the government can pave the way for sustainable and affordable housing solutions for all citizens29.... This requires strong government intervention in planning, provision of infrastructure, and the establishment of a legal and regulatory framework, that will encourage private sector investment. For further reading: National Housing Policies and the Realisation of Improved Ho Nigeria Housing Policy: Any Hope for the Poor Similar post on ACASH