Jackson, Etti & Edu

JEE Sector Thought Leadership Series

ANALYSIS OF NIGERIA’S POLICIES

ON HOUSING

Taiwo Adeshina
and
Richmond Idaeho
 Analysis Of Nigeria’s Policies On Housing

Introduction A Review of the Housing Policy in

The implications of socio-economic Nigeria
forces on housing, population and the In view of the importance of housing to
growth of a country are wide and far reach- the overall development and existence of
ing. The deficit in housing could put many mankind, the right to housing is a well
citizens in a precarious situation of either recognised and acknowledged right at
paying so much for an accommodation or international, regional and national
not having any decent accommodation at levels. In Nigeria, this right is provided in
all. Hence, the government’s policy on the Constitution and considering the fact
housing is inescapable. that the right is non-justiciable, makes it
The government housing policy is difficult to say that there is a legal right to
therefore premised on the goal of provid- housing such that would warrant a demand
ing affordable housing for the populace. by the citizens on the government to fulfil
Housing policy is the government actions this housing right. Section 16 (2)(d) of the
or interventions, including legislation, pro- Constitution provides as follows:
gramme delivery and subsidies, which have 2. The State shall direct its policy towards
a direct or indirect impact on its people’s ensuring:
housing objectives, housing supply and
availability, as well as housing standards and …………………………………………
urban planning. (d) that suitable and adequate shelter,
suitable and adequate food, reasonable
national minimum living wage, old age
care and pensions, and unemployment,
sick benefits and welfare of the disabled
are provided for all citizens.

The fundamental objective and directive

principle of the government on housing,
which is founded on the Constitution is
though not a justifiable right, but same had
influenced the government’s various hous-
ing policies over time. Nigeria’s socio- eco-
1
Richmond Ekhosuehi Idaeho, ACIArb., ABR, pnm, B.A (Hons.) Phil., LL.B, nomic policies on shelter encompasses delib-
(Benin), B.L (Lagos), LL.M (Lagos). Member of; Nigerian Bar Association,
Chartered Institute of Arbitrators (CIArb. UK), Business Recovery and erate guidelines and principles formulated
Insolvency Practitioners Association of Nigeria (BRIPAN), INSOL Interna-
tional, Nigerian Institute of Management (NIM) Chartered, and Association of and implemented to guide the government
Professional Negotiators and Mediators; philosopher, poet, social commenta-
tor, and human right activist. Mr. Idaeho works as an Associate, in the Law in her immediate and strategic goals for
Firm of Jackson, Etti and Edu, Victoria Island, Lagos, and can be reached on
richmondidaeho@jacksonettiandedu.com and +234 8066457045. this all-important sector.

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 JEE Sector Thought Leadership Series

Government has recognized that the

majority in need of housing are the low-
income earners. Thus, the two major com-
ponents of the government’s framework with
regards to shelter addresses the fundamental
issues of availability and affordability.2
In 1980-1989, Federal Government
proposed the 1981/82 National Housing
Programme which was intended to provide
350 medium and high housing income units
in each of the then 19 states of the federation aimed purposely at solving the housing
by the Federal Housing Authority. This was problems in Nigeria, which was implement-
in addition to the national low-income hous- ed in response to the ever-increasing hous-
ing units embarked upon by the government ing problems and demands. The major aim
in all the states of the federation popularly of the 1991 policy was to ensure that Nige-
known as Shagari low cost housing, under rians own or have access to decent housing
the supervision of the Federal Ministry of accommodation at affordable cost by the
Housing and Environment. The Government year 2000. The policy addressed some fun-
proposed 40,000 housing units to be con- damental issues like land acquisition (sub-
structed across the federation annually with ject to the Land Use Act), housing finance,
2000 units per state including Abuja, the housing construction and delivery.
Federal Capital Territory. The estimated The main strategy of the policy was
target for housing delivery under this policy to establish the National Housing Fund
was a whopping 200,000 houses to be deliv- Scheme to mobilize loanable funds from
ered between 1981 and 1985 but only 47,500 workers, which would be disbursed
were delivered.3 through the Primary Mortgage Institu-
The 1991 National Housing Policy, which tions (PMIs) with the Federal Mortgage
succeeded the 1981/82 National Housing Bank of Nigeria to provide loan for hous-
Programme was the first comprehensive and ing research, construction and delivery.
measured response by the government However, the poor performance of
the first National Policy in achieving the
2
Over the years, Nigeria’s ever-increasing population has brought about
reviews of existing housing policies and her engagement in several housing
above mentioned goals and objectives, inter
initiatives. An overview of the evolution and development of housing policies
in Nigeria highlights five distinct periods; the colonial period (before 1960),
alia, as well as the failure to adequately
the post-independence period (1960-1979), the second civilian administration
period (1979-1983), the military administration period (1984-1999) and the
resolve the housing deficit and other asso-
post military period (1999-date). The historical overview of the housing
policies in Nigeria is however beyond the scope of this paper. ciated problems created the need for more
For details please see Waziri, Aminu Garba and Roosli, Ruhizal “Housing
pragmatic solutions. The 1991 Policy was
3

Policies and Programmes in Nigeria: A Review of the Concept and Implemen-

tation” in Business Management Dynamics. Vol. 3, No. 2, Aug 2013, page 62.

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Analysis Of Nigeria’s Policies On Housing

to ease some difficulties encountered by housing scheme, establishment of the

citizens with respect to the operations of primary mortgage institutions and coop-
the Land Use Act, as it affects land owner- erating with all tiers of government in the
ship, as well as meet the need of Nigerians provisions of houses.6
for quantitative housing through mortgage The National Housing Policy of
finance. 2012 was
The 2002 Policy formulated to
later resulted into replace the
the Nigerian Na- prior Housing
tional Housing Policies par-
Policy (NHP) of ticularly that
2006.4 The main of 2006. The
objective of the thrust of the
2006 Policy was 2012 Policy
on institutional was the intro-
reform, capacity duction of
building, and mass housing
increased finan- for the pur-
cial mobilization pose of pro-
to the housing sector, local building mate- viding houses for Nigerians irrespective
rial production and adequate access to land.5 of their financial status. It aimed at the
It was also meant to eliminate the bottle- construction of one million houses annu-
necks that hampered the realization of the ally to augment infrastructural develop-
nation’s housing goals but without any spe- ment in the sector. . It placed importance
cific future date for its delivery. The policy on the central role of the private sector,
also emphasized private sector participa- and the government as regulator, in
tion in housing finance and investment, the sustainable development of the hous-
and one of the short-term measures initi- ing sector. The Policy has also introduced
ated in the policy was the commencement the concept of social housing, with the hope
of the implementation of a private sector of providing housing for the low income
led housing construction programme. . It earners by developing low cost housing,
specifies the role of the private sector to compared to luxury homes, as well as
include; participation in the employees make funds available for people in the
informal sector, in a bid to ensuring that
4
See Waziri, Aminu Garba and Roosli, Ruhizal, “Housing Policies and every Nigerian gets a house.
Programmes in Nigeria: A Review of the Concept and Implementation”, in
Business Management Dynamics, Vol. 3, No. 2, Aug 2013, page 64.
5
In order to achieve the policy objectives, 22 strategies were specified in
section 2.3 of the policy. 6
Section 3.5 thereof.

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 JEE Sector Thought Leadership Series

The Policy further aimed at enhanc- However, the implementation of

ing job creation through the establishment these policies over time by the government
of skill acquisition centres in the six geo has been characterised by poor adminis-
political zones across the country. The tration, inadequate funding, as well as
Policy also recognised the need for main- insufficient infrastructural amenities, and
tenance, proper planning of the environ- inadequate housing finance.
ment, and addressing urban renewal and
slumps upgrade, including the establish- Critique of Nigeria’s Housing
ment of infrastructures in the areas. It Policy
addresses the necessity of having a disas- It is imperative to note that despite that
ter management, contractor financing where the objectives of the new 2012 policy
contractors are expected to source for funds, were and are being rigorously pursued,
construct houses in a partnership with the Nigeria has still not been able to meet its
government, and the Policy ultimately hopes housing need and remains encased in the
to drive employment and income genera- menace of homelessness, slum dwelling,
tion in the country.7 overcrowding, waste overflow, dilapidated
However, the 2012 Housing Policy houses, shanty towns, poor refuse dispos-
is a good policy, but despite its laudable al system, breakout of highly contagious
programmes, it remains so on paper as it infections9 and other related problems.
has not yielded the desired practical The evolution and development of
...
results or effects on the Nigeria’s housing policies shows
common man. the 2012 Housing the government’s recogni-
The goal of the
Policy is a good policy, tion of the essential nature
various housing poli- of the right to shelter,
cies was to ensure but despite its laudable pro- although the efforts of
that all Nigerians
grammes, it remains so on the government are yet
own or have access to be translated into
to decent, safe and paper as it has not yielded the positive results for the
healthy housing
desired practical results or average Nigerian, as the
accommodation at ultimate goal should be
affordable costs.8 effects on the common availability and afforda-
bility.
man.
Housing deficit is a
7
http://scannewsnigeria.com/featured-post/nigeria-gets-new-hou-
sing-policy/ accessed, on 12th December 2018
global phenomenon with a wide gap in
8
This was fairly achieved by providing low cost housing for tenancy and sale.
As for example, in Lagos State, the Lagos State Development and Property
demand and supply in the sector result-
Corporation, apart from developing luxury houses in cities like Victoria
Island, has relatively served this purpose and has so far delivered some low
ing to homelessness, rise in slums
cost estates to the citizens across the State in Lekki, Ogudu, Agege, Ogba, 9
See for example Lassa Fever, which has affected 14 out of the 36 States of the
Ikorodu, Iponri and some other places.
Federation, including Lagos and Abuja.

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Analysis Of Nigeria’s Policies On Housing

and squatter settlements (shanties) which of the total world population, and accounts
usually creates problems of poor health for 47 percent of West Africa’s population.
due to poor living condition and lack of Nigeria’s population is growing rapidly and
basic amenities. Nigeria is not exempted moving into urban areas at an alarming
from this global shortfall. Nigeria’s hous- rate. This puts a double strain on existing
ing deficit is currently estimated at between housing resources, although the housing
17 to 23 million by the National Bureau development is more centred on urban
of Statistic (NBS), and industry experts. areas. Nigeria, just like many other coun-
To this end, at least, about $363 billion tries of the world, is unable to keep up with
United States Dollars (that is, about N111.08 the housing demand associated with the
trillion) has been estimated as cost for bridg- population explosion, with the attendant
ing the housing deficit in Nigeria.10 Thus, consequence of informal housing, over-
despite various policies on housing, insti- crowding and increase of slums. With an
tutions and regulations which the Nigeri- annual urban population growth rate of
an government had put in place since the 4.7 per cent, it would have been expected
1960, people still suffer from dearth of that Nigeria would embrace an intensive
housing. and focus-driven approach to housing
There are several problems associated development.
with the Nigeria’s Housing Policy, which However, Nigeria’s incumbent hous-
militate against housing development and ing problem has shown a historical lack
delivery in the country. These problems of focus and intensity on policy implemen-
have been responsible for the failures of tation and housing development. Nigeria
the previous housing policies, and may, if is yet to develop a viable and sustained
not deliberately and adequately addressed housing finance system due to lack of exper-
with concerted efforts, continue to hamper tise, up to date and knowledgeable indus-
the proper implementation of country’s try leaders especially in the policy making
Housing Policy. Some of these problems sphere, lack of funding for relevant insti-
have been identified below: tutional agencies/departmental research
into the appropriate policy model or frame-
a. Rapid Urbanization work.12 There is need for the political and
Nigeria is the most populous country social will to formulate and implement a
in Africa with a population of about workable and effective housing policy.
197,565,44811 and is equivalent to 2.57%
10
See National Bureau of Statistic, Nigerian Real Estate Sector Summary 12
Nations like Mexico, Brazil, Egypt, Morocco, Singapore, Malaysia, India and
Report: 2012-2015 and https://www.thisdaylive.com/index.php/2018/05/15/ni- Thailand, which are now first class models of sound housing policy systems
geria-requires-363bn-to-tackle-housing-deficit/ accessed on 11th December were worse off than Nigeria at some point, but the high level of professional-
2018. ism, and strong political will witnessed in their housing sector have made
11
This was as at Thursday, November 8, 2018, based on the latest United them successful in housing policy formulation, planning and implementation.
Nations estimates. See www.worldometers.info/world-population/nigeria-pop-
ulation/

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 JEE Sector Thought Leadership Series

The private sector should be provided with

incentives, loans and subsidies to boost the
drive in housing development and delivery.
The government should encourage and
guarantee long term finance and also con-
tinue to support the re-financing for primary
mortgage institutions, as for example the
Nigerian Mortgage Refinance Company
(NMRC). In addition, the regulatory role
of the government in the housing sector
should also be strengthened. Also, there
could be appropriate tax incentives and
pioneer status in designated localities for
real estate developers.
b. Long-Term Housing Finance
The Nigerian National Housing Policy c. Bureaucracies in Land Acquisition
from 2006 to 2012 had recognized the The Nigerian land tenure system
need for increased financial mobilization requires that consent of the governors or
to the housing sector by encouraging minister for any alienation of interest in
private sector participation in housing land.14 The bureaucracies in land acquisi-
scheme. Despite this laudable objective, tion, processing of certificate of occupan-
the implementation of same has proved cy and approval of building plans could
abysmal because of the inaccessibility of stall the quick implementation of housing
funds to the majority of people who live policies. The process should be made seam-
below the poverty line. High cost of build- less and easy and electronic means of pro-
ing materials, inadequate financial instru- cessing certificate of occupancy, building
ments for mobilizing funds, short-term plans approval etc should be developed
lending by financial institution, high inter- and fully utilised. Real estate developer
est rates, coupled with high rate of rural- should also be given priority in the appli-
urban rents have all obstructed the effec- cation for consent and the fees payable
tive implementation of Nigeria’s Housing across the various Lands Registries in the
Policy.13 country should be made affordable. This
will spur development of more housing
estates as well as make the units quite
13
Although there are various mortgage institutions that could be approached affordable.
for housing finance, it is very unlikely that the vast majority of the average
person on the street would be able to access such fund, and if they would, they See Section 21 and 22 of the Land Use Act 1978. See also the cases of
may not get as much fund as necessary for purchase of a home. Awojugbagbe Light Industries v. Chinukwe (1995) 4 NWLR (Pt. 390) 379,
Yaro v. Arewa Construction Ltd (2007) 16 NWLR (Pt. 1063) 333 at 374, paras.
C - E (SC).

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Analysis Of Nigeria’s Policies On Housing

d. Weak Institutional Frameworks

Real estate development is poorly regu-
lated in Nigeria. The problem is further
compounded by the menace of land grab-
bers 15 who would either attempt to
dispossess a bona fide purchaser of his land
or frustrate any attempt at the development
of the property. In most cases, they demand
heavy payment (as a form of compensation
of some sort) from the purchasers or devel-
opers irrespective of the purchase price models, reforms the extant Housing
already paid by the purchasers or devel- Policy, and strengthens the institutions
opers, up to the extent of disrupting and therein to deal with such housing prob-
demolishing on-going structures. This lems.
discourages housing development. Some
States like Lagos16 and Edo17 States have devel- e. Ineffective Governmental Pro-
oped a comprehensive framework to deal grammes and Policies
with this menace, by way of legislation, The Nigerian housing development histo-
while most states in Nigeria do not have ry is replete with several well drawn up
any strong institutional framework to curb housing policies and programmes which
the problem which has acted as a clog in the were largely never implemented. For exam-
effective development and delivery of hous- ple, the 1981/82 National Housing Pro-
ing. gramme recorded a very minimal level of
It is hoped that the Federal Govern- success. In 1994, following the 1991 Na-
ment would take the urgent and necessary tional Housing Policy, the National Hous-
step in enacting a federal law on this subject ing Fund was designed to deliver about
using the Lagos and Edo States laws as 121,000 housing units but less than 5%
15
Popularly called Omo Onile in Lagos State, while some other states like Edo
were recorded to have been achieved.
State they form community development associations.
16
Lagos State Land Grabbing Law 2016. The Lagos State government has also
Accordingly, between 1990-1999, an
set up a Special Taskforce on Land Grabbers to curb the deplorable acts as
well as ensure effective enforcement of the said law which criminalizes ambitious housing policy was launched by
forceful entry, land encroachment and fraudulent conduct in relation to
landed property. the then military government with the
In 2017, the Edo State Governor, Mr. Godwin Obaseki signed the Edo State
slogan “Housing for All by the year 2000
17

Private Properties Protection Law (a Law to Prohibit Forcible Entry and

Illegal Occupation of Landed Properties, Violent and Fraudulent Conduct in
relation to Landed Properties, Proscribe the Collection of Land based AD” but this programme was a funda-
Community Development Fees, Levies, etc by Community Development
Associations and any other groups in Edo State and for Connected Purposes), mental failure.
which prohibits land grabbing in the State. A special task force committee was
also set up headed by the former Inspector General of Police, Mr. Solomon The National Housing Policy of 2012
Arase. The law was largely sponsored by the Benin Monarch, His Imperial
Majesty Omo N’ Oba N’ Edo Uku Akpolokpolo Oba Ewuare II, who in his has not also delivered on its mandate. The
coronation speech a year before had decried the land grabbing menace that
had characterised the Community Development Associations (CDAs), which housing deficit keeps growing as a result
activities had affected land acquisition and development by citizens and
investors in the state.

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 JEE Sector Thought Leadership Series

of Nigeria’s demography, which is said to recently implemented such rental housing

be the fastest growing in the world, and policy which targets low and medium
the ordinary Nigerian is still faced with income earners in both formal and infor-
the problem of access to fund. mal sectors.18
There is therefore, need for the gov-
ernment to design practical policies and Conclusion
programmes and pursue same vigorously The Nigerian Housing policies which have
to meet designated targets. been directed in actualizing the goal of
available and affordable housing for all have
Recommendation largely been unrealistic, unattainable and
There should be formidable national ineffective because majority of the people
housing policies or plans with a proper are low income earners who cannot afford
and practical focus on the development of housing under the various programmes, as
the housing sector. There is need to revamp well as high cost of capital.
these existing policies, explore new tech-
niques and encourage best practices to attain
sustainable growth in the sector. Resourc-
es should also be deployed towards address-
ing the issue of homelessness and/or
reducing same to the barest minimum.
Given the fundamental nature of shelter to
man and the society in general, there is need
for awareness around such government’s
policies on shelter.
Nigeria should therefore develop
housing policies and programmes in line
with the unique cultural diversity of its
citizens as well as the financial, human
and material strength for a systematic
implementation over a period of time.
Rental housing is still very relevant and
should be incorporated into the housing
policy and made very affordable especially
based on the demographic and resource
pattern of each state of the federation.
This could in form of incorporating social See Lagos State Rent-to-Own Rental House Policy 2016,
18

housing into the policy. Lagos State

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Key Contacts

Taiwo Adeshina Richmond Idaeho

Sector Head, Real Estate & Infrastructure Sector Associate, Real Estate & Infrastructure Sector
e: taiwoadeshina@jacksonettiandedu.com e: richmondidaeho@jacksonettiandedu.com

Jackson, Etti & Edu

RCO Court 3-5, Sinari Daranijo Street, t: +234 (1) 4626841/3, +234 (1) 2806989 f: +234 (1) 2716889
Victoria Island, Lagos, Nigeria. e: jacksonettiedu@jacksonettiandedu.com www.jacksonettiandedu.com