By Jude Njoku

Worried by the growing rate of homelessness in the country, the Nigerian Institution of Estate Surveyors and Valuers NIESV, has called on the Federal Government to create a housing intervention fund to reduce the housing shortfall estimated at over 16 million units.

The housing experts insist that the Federal Government should intervene in this critical sector as it did in other key but troubled sectors of the economy.  The President of the Institution, Mr. Emeka Eleh who spoke ahead of the institution’s 43rd Annual General Conference, AGC which kicks off  in Benin City tomorrow, also called for a review of the nation’s mortgage policy.

Lamenting  the inability of most Nigerians to access mortgage facilities from banks, Eleh who identified high interest rates as a major challenge of the mortgage banking sector, argued that it will require a special intervention fund from government for mortgage banks to provide low interest facilities to property developers and individuals wishing to own properties.

He also make a strong case for the involvement of conventional retail banks in the administration of such intervention fund to ensure wider spread of access to the facility.

Gooluck Jonathan Estate in Abuja. (Credit Channels)

“There must be a direct intervention of government in the housing sector as was done to sectors such as banking, aviation and agriculture”, declared Eleh and suggested that such intervention could be in the region of N50b to stimulate the housing industry and create jobs.

He pointed out that government’s intervention in the housing sector will reduce unemployment in the country as the industry support many other subsidiary businesses such as food, water and sand supplies as well as building materials.

According to the NIESV’s President, “an average construction site generates huge formal and informal job opportunities ranging from food retailers, sand and water suppliers, building materials and the artisans that work directly at the sites”.

On access to mortgage facilities, Eleh canvassed for the involvement of retail banks in the disbursement of government mortgage funds to take advantage of their spread to reach subscribers all over the country.

He said it is important that government sets up a Mortgage Liquidity Company in partnership with the World Bank and International Finance Company to administer the mortgage funds through commercial retail banks.

“Mortgage Banks as presently structured and constituted cannot stimulate housing development. The retail banks are better placed and structured to make the mortgage system more effective. The intervention funds provided through Mortgage and Retail Banks will force down interest rates and ordinary Nigerians can access housing funds, he said.

Meanwhile, President Goodluck Jonathan is expected to declare the Institution’s AGC open tomorrow at the Best Western Hotel in the Edo State capital.

NIESV Publicity Secretary, Otunba Victor Ayeye disclosed that the conference will be deliberate on ways to actualize the nation’s infrastructural development and economic empowerment. He said over 3000 members of the Institution are expected to attend the conference. Edo State Governor, Comrade Adams Oshiomhole and Minister of Lands, Ms Ama Pepple are also billed to address the conference.

Mrs. Obiageli Ezekwesili, the immediate past Vice President (Africa) of the World Bank is expected to deliver the keynote lecture while five other speakers are lined up for the two day conference.

According to Ayeye, “We have a former Minister for Education and member of former President Olusegun Obasanjo’s Economic team, Mrs. Oby Ezekwesili as the lead speaker and the other speakers include Mr Ghali Bello, now Ag DG of ICRC, Mr. Adekunle Oyinloye, the Managing Director of Infrastructure Bank Plc, Dr. Christian Oboh, the Managing Director of Niger Delta Development Commission (NDDC) Dr Doyin Salami of Lagos Business School and Dr. B. J Patunola-Ajayi, the second vice-president of NIESV”.