DELIVERY OF LOW INCOME HOUSING IN NIGERIA PROSPECTS AND CHALLENGES

DELIVERY OF LOW INCOME HOUSING IN NIGERIA PROSPECTS AND CHALLENGES

ABSTRACT

The research is an assessment of low-income housing delivery in Nigeria; it analyzes the prospects and challenges of low-income housing delivery in Nigeria and intends to make recommendations for more efficient low-income housing delivery in Nigeria.

INTRODUCTION

Housing is critical to human survival, ranking among the top three human needs. Its provision has always been critical to man.

As an environmental unit, housing has a significant impact on the community’s health, efficiency, social behavior, satisfaction, and overall well-being. It is a reflection of a society’s cultural, social, and economic values, as well as one of the best historical evidences of a country’s civilization (Olotuah, 2000).

Housing is a major economic stimulant in any country, so providing adequate housing is critical. Housing is a category of long-term assets that accounts for a significant portion of a country’s wealth and on which households spend a significant portion of their income.

income. For these reasons, housing has become a common topic in economic, social, and political debates, often with highly charged emotional undertones (Agbola, 1998).

Housing problems in Nigeria, as in many other developing countries around the world, are multifaceted. Over the years, the problems of population explosion, continuous influx of people from rural to urban areas, and a lack of basic infrastructure required for a good standard of living have exacerbated housing problems. Access to this basic need by the poor, who constitute the majority of the world’s population, has remained a mirage that must be seriously addressed. According to Ogieto (1987), the disparity between the price and quantity of housing on the one hand, and

The central problem of housing is the number of households and the money available to them to pay these prices. The price at which houses enter the market has a significant impact on affordability. Only a few people are able to afford houses where the unit cost is abnormally high. According to Okupe and Windapo (2000), the income-to-housing cost gap in Nigeria is very large.

This has nearly eliminated low-income earners from the housing market. The purpose of this research is to provide an assessment of the delivery of low-income housing in Nigeria, including its prospects and challenges.

CHAPTER 1

1.1       BACKGROUND OF THE STUDY

A lack of adequate housing exists in almost every country, particularly in developing and third-world countries. The shortage is more acute in urban areas, both quantitatively and qualitatively. Omojinmi (2000) discovered that people who sleep in deplorable conditions in urban Nigeria outnumber those who sleep in decent conditions. As a result, it is asserted that there is inadequacy in housing to accommodate Nigeria’s ever-increasing population (Arayela, 2003). The reasons for this housing shortage are numerous. High construction costs have been discovered to exist in all countries, albeit to varying degrees of significance (Adedeji, 2007). Afolayan (1987) attributes the high cost of construction to rising building material costs, economic inflation, and high space and quality requirements. Designer standards, professional fees for housing design and construction, excessive contractor profit, and 10% interest payable on Nigeria’s National Housing Fund (NHF). The sale of 2-bedroom bungalows at Otedola Estate in Lagos, which according to LSG (1999) was the cheapest obtainable, and the subsequent sale of 2-bedroom flat at Ikorodu by LSDPC (Lagos State Development and Property Corporation) at N1.7 Million are examples of high housing costs compared to the low salaries of civil servants in Nigeria. The research will look into the challenges and opportunities for low-income housing in Nigeria.

1.2       STATEMENT OF THE PROBLEM

The inability of many Nigerian workers to afford decent housing has reached epidemic proportions, resulting in low morale and productivity. However, given the importance of housing delivery, it is critical that the issue of housing delivery be addressed properly. The research will look into the delivery of low-income housing in Nigeria, as well as its prospects and challenges.

1.3       RESEARCH  QUESTIONS

1 What is the nature of low-income housing provision in Nigeria?

2 What are the challenges and prospects for low-income housing delivery in Nigeria?

1.4      OBJECTIVE OF THE STUDY

1. Assess the nature of low-income housing delivery in Nigeria.

2 To ascertain the nature of Nigeria’s low-income housing delivery challenges.

3 To assess the prospects for low-income housing delivery in Nigeria.

1.5        SIGNIFICANCE OF THE STUDY

The research will provide an assessment of the challenges and prospects of low income housing delivery in Nigeria, as well as a wealth of information on the subject.

1.6        STATEMENT OF HYPOTHESIS

1 H0 In Nigeria, the availability of low-income housing is limited.

H1 Nigeria has a high rate of low-income housing delivery.

2 H0 In Nigeria, the challenges of low income delivery are significant.

H1 In Nigeria, the challenges of low income delivery are minimal.

3 H0 In Nigeria, the likelihood of low-income delivery is low.

H1 In Nigeria, the likelihood of receiving a low-wage income is high.

1.7        SCOPE OF THE STUDY

The study’s scope is focused on assessing the delivery of low-income housing in Nigeria. It examines the challenges and prospects of providing low-income housing in Nigeria.

1.8        DEFINITION OF TERMS

DEFINITION OF THE NATIONAL HOUSING FUND

The National Housing Fund (NHF) scheme was established by a National Assembly Act (Act No.2 of 1992). The National Housing Fund mandated that workers contribute 2.5% of their earnings to the fund as mandatory savings.

DEFINITION OF LOW INCOME EARNERS

According to the Nigerian National Housing Policy (FGN, 2004), the low-income group includes all employees and self-employed people whose annual income is N100, 000:00 or less (i.e. the equivalent of salary grade level of 01-06 within the civil service). Surprisingly, the annual national minimum wage is N44, 000. 00. Approximately 57% of the Nigerian population lives below the poverty line, which is set at US$1 per day on average (Wahab, 2006). In reality, the majority of employees who Many self-employed Nigerians earn well below the national minimum wage because they work outside the public sector or the organized private sector.