- Agency Report
A construction professional, Mr Ayotunde Bally, has urged the Federal Government and policymakers to create a more favourable environment for investment in affordable housing.
Bally, who is the Chief Executive Officer of Dembally Ltd., a real estate development company, made the call in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos.
Highlighting major challenges faced by developers in providing affordable housing in Lagos State, Bally described the high interest rates as the significant obstacle.
He said, “ The high interest rates as the prime lending rate of 17.5 per cent makes it difficult to secure long-term funds.
“Properties approval and title paperwork is another hurdle, with uncertainty surrounding land documentation and delays in the process hindering loan development.
“The Land Use Act of 1978 also poses a challenge, making land transfers difficult, time-consuming, and costly.
“Additionally, infrastructural inadequacy and high construction costs due to reliance on imported materials contribute to the challenges.’’
Bally was reacting to the rising cost of living, which has made it difficult for Nigerians to afford basic amenities, including housing.
According to him, making it easier to build affordable housing, especially through government collaboration, will help more people own homes.
“ To make it easier to build affordable housing, the government needs to change the laws that govern land ownership to make it simpler and faster to buy land.
“The government must make the process of officially registering property ownership easier and quicker.
“Government must build roads, water pipes, and electricity lines to support new housing developments.
“They must ensure that new homes have access to essential services like water, electricity, and sewage.
“Also, provide government-backed loans and subsidies to help developers and homebuyers afford housing,’’ Bally said.
The construction professional also advised the government to offer incentives and support to developers to encourage more investment in affordable housing.
He said that reducing taxes on housing-related activities could make it more attractive for developers and investors.
Bally said that government subsidies could help offset costs and make housing more affordable for low-income individuals and families.
“The government can offer loans with lower interest rates to reduce the overall cost of financing housing projects.’’ he said.
Bally said that streamlining regulatory processes and simplifying property registration would also help reduce costs and increase efficiency.
He said that Public-Private Partnerships could bring together financial resources, technical expertise, and infrastructure to support affordable housing development.
He suggested two innovative financing models such as Microfinance Schemes and Cooperative Housing Models and Rent-to-Own and Lease-to-Own Models, would make housing more accessible.
NAN recalls that the government, through the Minister of Finance, Wale Edun, recently approved the setting up of a N250 billion real estate investment fund, aimed at providing affordable, long-term mortgages to Nigerians.
The approval is part of efforts by the present administration to address the 22 million housing deficit in Nigeria and stimulate long-term economic growth.
The new initiative will offer low-cost mortgages to individuals seeking to own homes, with interest rates targeted at single-digit or low double-digit figures. NAN