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DESPITE the availability of Multilateral Finance Institutions (MFIs), Chief Executive Officer, Financing &Partnerships Africa Limited, Mr Emmanuel Akinwumi, has identified poor project’s preparation and readiness; poor records of accomplishment as reflected in lack of strong balance sheet; lack of complementary infrastructures in project sites; environmental impacts and social concerns.
Akinwunmi also identified lack of quality concerns(technical, administrative and compliance); weak project sponsors and inadequate equity contribution; lack of synergy, harmony and collaboration to build communities as limitations to housing finance in the country.
In addition, he listed insecurity and social crises, including threats of secession; wrong policy conversation and inadequacy in policy, regulatory and judicial environment as parts of the limitations.
Others, he said, include corruption, impunity, criminality, inefficiency and other forms of weaknesses in land governance at all levels; forex crisis (shortage of the Dollar and lack of transparency).
In addition, he said deficit in complementary infrastructures such as lack of reliable electricity, clean water supply, sanitation services and efficient transport system; and lack of national direction to build communities and improve existing housing stock.
Akinwumi, in one of his presentations at the recently organised workshop by the Association of Housing Corporation of Nigeria (AHCH)’s, also listed dominance of informal economy and lack of housing data, other information, and macro-economic turbulence (high inflation, high interest rates, high unemployment rate, sliding disposable incomes) as limitations of housing finance in Nigeria.
Nigerian Tribune noted that since the housing expert reeled out these limitations a year ago, the challenges confronting the sector are yet to be addressed.
To attract multilateral finance for affordable housing delivery in the country, Akinwumi pointed out that the challenges confronting the sector must be tamed.
Be it housing or other infrastructure, he explained that multilateral DFIs played a core role in development cooperation and partnership effectiveness with client countries as they “bring international finance and expertise together in support of participating countries.”
According to him, such partnership always brings provision of development finance at relatively lower interest rates and longer tenor and grace period.
He said, “Attracting multilateral finance for affordable housing may be achieved in Nigeria if the challenges confronting the housing development sector are tamed;
“There is a need to define Nigeria’s social housing policy to ‘affordable decent housing for all Nigerians.’
“This may expand focus to affordable home rental, affordable rent-to-own and rehabilitation, improvement and expansion of existing housing stock (including urban renewal, reconstruction of slums and development or satellite towns).”
As solutions to the identified limitations, Akinwumi said there was a need to deepen dialogue with multilateral finance institutions for housing delivery.
Besides, he said it has become necessary to strengthen collaboration in Public-Private Partnership (PPPs) to foster effective housing finance and delivery, while redefining policy conversation to ‘affordable decent housing for all Nigerians’.
To attract multilateral finance, he urged the need to build sustainable communities.
He also tasked government and stakeholders to checkmate growing insecurity in the country and achieve improvement in housing ecosystem.
“Improve macro-economic, policy, regulatory and judicial environment environment by putting round pegs in round holes in national and sub-national governance.
“Tame forex crisis and lack of transparency by evolving holistic reforms in place of ad hoc interventions. Invest in complementary infrastructures,” he said.
For the umpteenth time, Akinwumi called for the commercialisation of the Federal Mortgage Bank of Nigeria (FMBN) to build capacity that will rank it withworld class institutions like the CMHC Canada, which successfully take charge of housing development.
It will also help it relevance in finance anchor, research, data bank, advocacy, compliance, mortgage guarantee, securitisation, training and capacity building, improvement of communities, “green” advocacy, energy efficiency and leading in other housing development and finance issues, driving positive growth in the Canadian economy.
He urged the need to continue the housing development and finance advocacy.
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