THE ROLE OF THE
FEDERAL GOVERNMENT IN SOLVING HOUSING DEFICIT IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
Housing, literally is defined as buildings
or other shelters in which people live, a place to live, a dwelling and to nations
a critical component in social and economic system. Housing represents one of
the most basic human needs. To most groups housing means shelter but to others
it means more as it serves as one of the best indicators of a person’s standard
of living and his or her place in the society (Nubi, 2008). It is a priority
for the attainment of living standard and it is important to both rural and
urban areas. These attribute make demand for housing to know no bound as
population growth and urbanization are increase very rapidly and the gap
between housing need and supply becomes widen. This housing deficit has
continued to accumulate over the years as a result of poor housing policy
implementation by successive government in Nigeria. Cultural factors such as preferences
and values or social status, taste and financial resources, also influence a
house physical characteristics. In developing countries, poor housing delivery
has been attributed to inadequate mechanisms and systems for land allocation,
funding, mortgage institutions and infrastructure (Encarta, 2007).
Nigeria
is perhaps the fastest urbanizing country in the African continent. One of the
most important challenges facing the country is the provision of affordable
housing. As more and more Nigerians make towns and cities their homes, the
resulting social, economic, environmental and political challenges need to be
urgently addressed (Raji, 2008). A recent study of housing situation in Nigeria
put existing housing stock at 23 per 1000 inhabitant. Housing deficit is put at
15 million houses (Mabogunje 2007) while N12 trillion will be required to
finance the deficit. This is about 4 times the annual national budget of
Nigeria (FHA, 2007). House prices and rents, on the other hand, have grown
ahead of general inflation. Making matters worse, the composition of houses for
sale and rent on the market has been inexorably shifting towards very expensive
house (Nubi, 2008).
Between 1975 and 1980, there were plans of
deliver 202,000 housing units to the public but only 28,500 units, representing
14.1% was achieved. Also, out of 200,000 housing units planned to be delivered
between 1981 and 1985, only 47,200 (23.6%) was constructed. Under the National
Housing Fund (NHF) programme initiated in 1994, to produce 121,000 housing
units, it was believed that less than 5% was achieved. In spite of a series of government
policies towards housing delivery, there exists a gap between housing supply
and demand.
Research has shown that 75% of urban
housing is situated in slum conditions (UNDN, 2005), and indeed the quality of
the housing is poor and clearly an affront to human dignity (Agbola and
Olatubara, 2003). As part of effort to increasing qualitative, affordable
housing for the masses in the country, the Federal Government in 2004, pledged
to adequately fund research pertaining to the manufacture and the use of local
materials in the sector. Housing delivery in Nigeria is provided by either the
Government or Private sector, but despite Federal Government access to factors
of housing production, the country could at best expect 4.2% of the annual requirement.
Substantial contribution is expected from other public and private sectors. The
production of housing in Nigeria is primarily the function of the private
market; approximately 90% of urban housing is produced by private developers.
Due to housing demand created by rural- urban migration, which account for 65% of
urban population growth, the fixed supply of urban land, and inflation of
rental and housing ownership cost (Taylor, 2000).
The problem of affordable housing has been
a concern for both the government and individuals. Appreciating these problems,
both public and private sector developers make effort through various
activities to bridge the gap between housing supply and demand, but the cost of
building materials, deficiency of housing finance arrangement, rigorous loan
conditions from mortgage banks, government policies amongst other problems have
affecting housing delivery significantly in Nigeria (Raji, 2008). However, the
researcher is of the opinion that government still has much to do in terms of
solving housing deficit in Nigeria.
1.2 STATEMENT OF THE PROBLEM
The
problem of housing deficit in Nigeria has been a topic of discussion at
different forum of the economy. The situation even becomes more serious and
worrisome when one realizes the fact that despite a number of political,
social, and religious initiatives taken in the past in Nigeria, a large
proportion of the nation’s population still lives in sub-standard and poor. In
Nigeria, housing provision by government commenced before political
independence in 1960 and despite various government interventions and huge
investments in housing provision, the housing problem in the country still
remains intractable as many rural and urban populations in Nigeria do not have
access to decent, safe and affordable housing. This is as a result of the
government inability to provide adequate and affordable housing to the
populace. However, the researcher seeks to examine the role of the federal
government in solving housing deficit in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The
following are the objectives of this study:
1. To examine the role of the federal
government in solving housing deficit in Nigeria.
2. To ascertain the level of housing
deficit in Nigeria.
3. To identify the solution to the
problems of housing deficit in Nigeria.
1.4 RESEARCH QUESTIONS
1. What
is the role
of the federal government in solving housing deficit in Nigeria?
2. What is the level of housing deficit in
Nigeria?
3. What is the solution to the problems of
housing deficit in Nigeria?
1.5 HYPOTHESIS
HO:
Government has not solved the problem of housing deficit in Nigeria.
HA:
Government has solved the problem of housing deficit in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The
following are the significance of this study:
The
outcome of this study will educate the Nigerian populace on the contribution of
government to solving housing deficit in Nigeria. It will also sensitize the
policy makers and the government on the need to address the problem 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 the role of the federal government in solving housing deficit in
Nigeria will cover all the attempt made by both past and present government at
addressing the problem of housing deficit in Nigeria.
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.
REFERENCES
Agbola, T. and
Olatubara, C.O. (2003); Private Sector Driven Housing Delivery (in Nigeria):
Issues, Constraints, Challenges and Prospects, a lead paper presented at the 2nd Annual National
Workshop on Private sector Driven Housing Delivery in Nigeria, University of
Lagos, Lagos, 30th – 3rd July.
Encarta, 2007: A Computer base Microsoft
software.
Raji, O. (2008):
Public and private developers as agents in Urban Housing delivery in
sub-Saharan Africa. The situation in Lagos state, Humanity of social sciences
Journal, Vol.3, No.2: Pp. 143-150.
Mabogunje,
A. (2003). Welcome address at the Stateholders Forum on Strategies for
enhancing Domestic production of Building Materials for Mass Housing
Development in Nigeria. Held at NICON Hilton Hotel, Abuja, 24th September 2003.
Nubi, O.T.
(2008): Affordable Housing Delivery in Nigeria. The South African Foundation
International Conference and Exhibition, Cape Town, October, Pp. 1-18.
Federal
Government of Nigeria (FGN, 2004): National housing Policy Draft, Abuja.