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‘Cash & carry financing, bane of affordable housing’

Access to affordable housing will continue to be a mirage in Nigeria for as long as the practice of selling houses in the country continues to be on ‘cash and carry’ basis.

Newly elected President, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Bode Adediji, made the remark in Lagos and re-emphasised the need to reform the country’s mortgage system if the aspiration of providing affordable housing to the average Nigerian is to become a reality.

Adediji, who also called on the Federal Government to simplify the process of acquiring land to boost the housing sector, asserted that the high cost of housing is bound to persist unless the practice of selling houses on a ‘cash and carry’ basis is discontinued.

“In other parts of the world, individuals acquire houses through an upward of 30 year mortgage facility and not through cash and carry. It is only in Nigeria that houses are sold on cash and carry basis and on mortgage facilities below 15 years and at higher interest rates. You can see that the high cost of housing is just obeying the basic law of demand and supply,” he stated.

NIESV members, at their recently concluded annual conference, were critical of the indecisive position of the National Assembly on land reform and mortgage sector and urged the federal government to vigorously pursue a land reform agenda that will promote registration of titles and review the Governor’s consent provisions of the Land use Act.

They also recommended that the primary mortgage institutions be adequately recapitalised to prepare them as a veritable channel for giving mortgage loan to beneficiaries.

“The primary mortgage institutions should be adequately recapitalised and supervised to prepare them to be a veritable channel for mortgage to beneficiaries. Contributions to the National Housing Fund should also be enforced to ensure that everybody in all sectors contribute to it.”


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