Finance, Accessibility Impeding Government Intervention In Housing Sector – Commissioner

Financing housing development and empowering people for accessibility are the twin issues hampering the impact of government intervention in the housing sector.

The Honourable Commissioner for Housing, Mr. Moruf Akinderu-Fatai, made the disclosure at an engagement meeting with representatives of various housing development partners in Lagos on Tuesday.

Speaking at the forum, Akinderu-Fatai pointed out that the housing challenge in Lagos is complex because of the continued and uncontrollable influx of people from every part of Nigeria, adding that given the rate of population increase in the State, there must be proactive measures to ensure that governmental interventions result in substantial positive impacts on the lives of the people.

He reiterated that the Lagos State government is working hard to map out housing -finance products that are domesticated to solve the peculiar challenges of the State, noting that global financing models are attractive but may not address the housing problem in Lagos State.

The Commissioner pointed out that the provision of mass and social housing is a key agenda of the State government but the impact can only be felt when there is a structured financing mechanism that is based on predictable population growth.

“Apart from the rent-to-own scheme, which gives the opportunity of repayment over a period of 10 years, the State government is also looking at more workable financing options that will help the informal sector. We have to formalise the informal sector so that the majority of our people can take advantage of a financing product that supports instalment payments”, he said.

Akinderu-Fatai averred that more vertical construction of homes will take place both by government and private investors to optimise the available land space, stressing that a viable housing development fund is one that will address the issue of financing both the supply and demand angles of housing development.

“In our passion for progress in the sector, funding is needed and assistance from our development partners will be highly appreciated”, he added.

In his remarks, the Permanent Secretary, Ministry of Housing, Mr. Wasiu Akewusola appealed for greater collaboration with the government on developing and implementing a financing document that will be apt for Lagos State.

Earlier, the Project Manager of Arctic Infrastructures, Mr. Lookman Oshodi made a presentation on the proposed Lagos Affordable Housing Development Fund, a financing product which promises relief to both developers and aspiring homeowners both in the formal and informal sector.

According to Oshodi, the uniqueness of the financing package is the fact that it is targeted at low-income earners and can also be accessed by both construction companies and home seekers, comprising contributions made by both government and private sector.

In his words “The fund will also cater for training, capacity building and upgrading of artisans and mortgage operators, development of innovative building technology, sustainable housing developments and renewable of slums”.

“The suggested funding from the government is expected to be sourced from contributions by local governments, subventions, infrastructure development charge, Housing fund surcharge and Lagos Pension Fund. Private sector contributions can be in the form of grants and donations from both local and international organisations”, he asserted.