By YINKA KOLAWOLE

Concerted effort by all stakeholders is needed to spark a housing revolution which is necessary to adequately address the huge housing deficit in Nigeria, estimated to be 16 million units.

Managing Director, ASO Investment and Development Company (AIDC), Mr. Isoken Omo, stated this in a paper titled: “Delivery of 500,000 Housing Units by 2016 – A Developer’s Perspective”, at the recently concluded Housing Exhibition and Conference organised by ASO Savings and Loans Plc in Abuja.

“Most countries that have successfully embarked on mass housing have done so within an enabling environment enabling environment characterised by affordability, availability of legal rights over property, availability of infrastructure, financial innovation and, effective urban planning. If a housing revolution is to occur in Nigeria, the right conditions must be in place, and all stakeholders (FG, States, financial markets, developers, professional bodies, etc.) will each have a vital role to play in bringing about the revolution,” he stated.

According to him, a multi-faceted approach is required to solve Nigeria’s housing crisis, noting that some of the approaches need to be coordinated while some others can run on their own. “All stakeholders have important roles to play and no single group, whether the public sector or the private sector, should be saddled with the responsibility of providing affordable housing.

All stakeholders in the housing value chain must be engaged in order to start dealing with the Nigerian housing problem. Professional bodies such as MBAN, REDAN, NIA, NIQS, NIESV, etc., need to ensure capacity building for its members and ensure active participation to close the housing gap. There is a great need for more privately run, formal housing organizations with the necessary skills set and capacity to be engaged in delivering affordable mass housing,” he stated.

Omo declared that his company’s plan to deliver 500,000 housing units by 2016 translates to an annual equivalent of 167,000 units over 3 years is audacious. He estimated that N2.160 trillion would be needed for the construction of the 500,000 units, while cost of providing insfrastructure for the development will amount to N252 billion.

“This is based on average 2-3 bedroom accommodation of 85sq.mtrs priced at N5m and reduced to N4m based on application of technology for building. It does not include resources to ensure a cohesive community, and it’s also assumed that the land have been provided by government,” he stated.

The AIDC boss gave the breakdown as: 166,666 housing units in 2014 at a cost of N830 billion; 166,666 units to be delivered in 2015 at N664 billion and; 166,668 units in 2016 at a cost of N666 billion, with cost of providing infrastructure at N84 billion in each of the three years.

Speaking on the issue of affordability, Omo remarked that the average three-bedroom house built by a developer without subsidy or intervention from government or otherwise, will cost a home buyer about N8 million.