AN EVALUATION OF HOUSING AFFORDABILITY FOR NIGER STATE CIVIL SERVANTS UNDER PUBLIC-PRIVATE PARTNERSHIP (PPP) HOUSING DEVELOPMENT

AN EVALUATION OF HOUSING AFFORDABILITY FOR NIGER STATE CIVIL SERVANTS UNDER PUBLIC-PRIVATE PARTNERSHIP (PPP) HOUSING DEVELOPMENT

Abstract

Since its inception in 1976, the Niger government has performed very poorly in providing social housing to its citizens, providing only 3,000 units of housing to a population of 3,954,772 to date. The government changed its provision strategy from being the sole provider of housing, opting in 2007 for a new Public Private Partnership (PPP) strategy to provide affordable housing for all workers through private sector-led mechanisms. . Since 2007, many homes have been awarded to beneficiaries, mostly government officials. The challenge, however, was determining how affordable the housing offered was for civil servants who receive varying salaries within the state wage system. This study conducted an analysis of housing product affordability for different levels of civil service quotas. Data used for the analysis were sourced from the project record files, government approved wage table and a questionnaire survey. The purposive sampling technique was employed in administering the questionnaire to a sample of 187 beneficiaries. The analysis revealed that applying the standard housing affordability yardstick of not more than 30 percent of gross household income, only civil servant allotees from level 10 to 16 can afford the 2-bedroom housing at a total cost of N1.9M and a monthly repayment amount of N10,000.00 while 3-bedroom houses were not affordable to any of the allotees at a total cost of N2.9M and a monthly repayment amount of N19,000.00.This probably explains why 44 percent were partially satisfied while 68 percent respondents stated that their dissatisfaction was due to the monthly repayment amount. The study by way of sensitivity analysis was able to recommend that if the cost of 2-bedroom house is reduced to N1.2M and mortgage repayment interest rate reduced to 3 percent for an extended period of 25 years every workers from level 1 to 16 could afford the houses in such modified scheme.

AN EVALUATION OF HOUSING AFFORDABILITY FOR NIGER STATE CIVIL SERVANTS UNDER PUBLIC-PRIVATE PARTNERSHIP (PPP) HOUSING DEVELOPMENT

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Housing is an integral element of a nation‟s economy and its backward and forward linkages with other parts of the economy closely bond people‟s needs, demands and social processes. Through these links, housing can serve as an important engine of social and economic sustainable development and poverty reduction, and without a functioning housing sector, no urban center can be built or developed. A functioning housing sector provides adequate and affordable housing and sustainable urbanization patterns that are critical for the future of our increasingly urbanized planet (Arias, 1993).

The provision of public housing for public servants in Niger began after the establishment of the state in 1976, with the construction of several government buildings under the supervision of the Niger Ministry of Labor, Transport and Housing. Then, in 1979, the Niger State Housing Corporation was established to provide housing throughout the state. However, between 1976 and 2007, less than 3,000 housing units were developed by the public sector. Niger State Evolution Strategy for Sustainable Housing (NSESSH, 2007).
To remedy this, the Niger government introduced public-private partnerships (PPPs) in 2007 as an alternative strategy for housing supply. This was a response to the Second United Nations (UN) Conference on Human Settlements (HABITAT II) held in Istanbul in June 1996, which advocated the provision of effective and affordable mass housing through public-private partnerships. (NSESSH, 2007).