APPRAISAL OF MODERN STRATEGIES FOR HOUSING DELIVERY

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY

One of the most serious developmental challenges that Nigeria is currently facing is a housing shortage. Building technology stakeholders and industry operatives are unanimous in their belief that the process of housing delivery in Nigeria requires a change in strategy. In this study, the researcher is looking at modern approaches that could be used to address the nation’s housing deficit, which is estimated to be around 17 million units (Akeju, 2012). Despite the fact that Nigeria, with a population of over 160 million people, has been identified as Africa’s largest market for everything, including real estate, rising demand for decent shelter has continued to outnumber housing supply. Over the years, successive governments in the country have experimented with policies in an attempt to meet the country’s mass housing target, but due to unforeseen circumstances, Because of a lack of reasonable commitment, achieving the goal has remained elusive (FRN, 2007). Experts who provided an analytical perspective on the problem of housing delivery in Nigeria advocated for the declaration of a state of emergency in the housing sector, claiming that innovative thinking and modern strategies could result in better outcomes that would improve the country’s housing delivery process. It is well known that financing housing projects has remained one of the most serious issues in the sector, impeding housing delivery. According to Akeju (2012), the main issue in housing delivery is funding, specifically getting adequate funding. There is money everywhere, but it is not the right kind of money for long-term projects like housing. Something That can truly work for affordable housing is similar to what the Federal Mortgage Bank provides, which cannot go round. A modern housing delivery strategy in Nigeria will reiterate the government’s priority to combat overcrowding and the ambitious goal of reducing severe overcrowding in rented housing apartments (Bush, 2004). A strategic plan for housing delivery should include funding for larger homes with at least a higher number of bedrooms, as well as a long-term commitment to delivering family-sized affordable homes (Easton, 2006). There are numerous strategies required to facilitate massive housing delivery in Nigeria, but modern and technologically inspired large scale housing schemes – schemes and sites with thousands of housing units – could play an important role in the delivery of a large number of housing units. Nigerians require a certain number of houses. The last 20 years’ experience suggests that the level of demand for new homes over the next decade will not be met by piecemeal incremental developments. Today, there is a housing shortage for low-income earners in Nigeria, as well as constantly increasing housing demands (due to population growth) that are not being met. Unfortunately, banks are hesitant to provide low-income earners with mortgage financing. The Nigerian Mortgage Refinance Company (NMRC) was established to promote home ownership and increase the availability and affordability of mortgage loans to Nigerians in order to address the country’s housing/mortgage challenges. Despite NMRC’s incorporation on June 24, 2013, not much has changed. Banks’ apathy toward mortgage transactions persists. Understandably, lingers due to the risk of default. To back this up, 66,402 Nigerians applied for mortgages as part of the recent Nigerian Housing Finance Programme. There were only 10,000 Nigerians chosen. However, the interest rates charged by the program’s primary mortgage lenders were alarming (14.5% -19%). It is suggested that a cue be taken from other countries where mortgage costs for first-time home buyers are low, with small down payments and simple terms, particularly a single digit interest rate.

1.2 STATEMENT OF THE PROBLEM

Many countries are concerned about the issue of housing delivery. This is a particularly serious issue in Nigeria. The problem has been exacerbated by a number of factors, including rapid population growth, a scarcity of necessary skills, and a shattered supply chain. The Nigerian government and stakeholders in the construction industry must respond to Nigerians’ housing needs in both quality and quantity. Some researchers have advocated for other modern construction methods, such as dry construction, as a strategy for mass housing delivery. However, the researcher is investigating how modern strategies can be used to ensure that Nigerians’ housing needs are met.

1.3 OBJECTIVES OF THE STUDY

The following are the study’s objectives:
1. To investigate contemporary strategies for effective housing delivery.
2. To assess the impact of modern housing delivery strategies in Nigeria.
3. To investigate the factors impeding the use of modern housing delivery strategies in Nigeria.

1.4 RESEARCH QUESTIONS

1.5 SIGNIFICANCE OF THE STUDY

1.6 SCOPE/LIMITATIONS OF THE STUDY

LIMITATION OF STUDY

Financial constraint- Inadequate funding tends to impede the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection process (internet, questionnaire and interview).
Time constraint- The researcher will conduct this study alongside other academic work. As a result, the amount of time spent on research will be reduced.

APPRAISAL OF MODERN STRATEGIES FOR HOUSING DELIVERY

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