FHA AND AFFORDABLE HOUSING
The authorities could do more to meet the housing needs of the people
Labour impact assessment studies in countries with similar demographics and economies as Nigeria estimate that no fewer than five direct jobs can be generated with every new home, and two indirect jobs in housing-related expenditure. At present, the federal government runs housing initiatives like the Renewed Hope Housing and the National Housing Programmes. Beyond the job prospects, public housing accounts for less than 10 per cent as most depend on the informal sector for their housing needs. But even when mass housing projects can be part solution to unemployment while meeting the residential needs of many, experts do not believe that the current approach by the Federal Housing Authority (FHA) will produce the desired results.
Created under the National Development Plan in 1973, the FHA is essentially mandated to coordinate, drive, and execute government housing agenda to the low, medium, and high-income groups. Over the years, FHA has been able to deliver thousands of housing units across the nation, despite obvious challenges. However, what is worrying is that many of its old estates are in bad shape: they are ill-kept. Many are increasingly falling into slums. The issue is not only about standards but poor conception, as well as the manner in which the houses were allocated in the past, and whether the current approach could not be different.
As part of the efforts to deepen access to affordable housing across the country, the FHA said on Wednesday that it has secured prime land in 28 states. “We have also commenced the process of construction in some of the states, having procured the contracts,” said FHA Executive Director, Estate Services, Ezekiel Etuk, at the groundbreaking ceremony for the FHA Green City Estate in Abuja. “We are currently working on the FHA Estate, Bwari, Abuja, which comprises 336 units, with the target date of commissioning before the end of this year.”
Over several decades, the FHA has built many estates across the country. Perhaps the most prominent among them is FESTAC Town, initially dubbed “little London”. Built in 1977 with substantial resources to house participants of the Second World Festival of Black Arts and Culture of 1977, the federal government allocated the houses and landed property to winners, after a ballot. Like Gowon Estate (Ipaja Federal Housing Estate also in Lagos}, initially built for FESTAC, it is seedy with plenty of crimes. The sewage system in both estates has collapsed, leading to constant outflow of dirt and waste. In 2022, the then Housing Minister instructed the agency’s Southwest Zonal management to explore private sector funding to stem the infrastructural decay in the estates. But nothing came out of it, as the estates continue to deteriorate.
Developments in Nigeria contrast with some other climes where public housing contributes largely to social engineering. In the United Kingdom for instance, there are council apartments built and either sold or let to individuals. The councils maintain, collect rents, and administer sales mortgages. Unfortunately, local governments in Nigeria have been rendered prostrate by the governors. Many believe the federal government should keep its hands off retail housing provision as they are far too removed from the people. The suggestion is for the empowerment of both the Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Mortgage Refinance Company (NMRC) for the task of providing affordable housing to Nigerians.
There are existing examples to draw from. At the industry level, there are houses built and owned by private people and companies. These constitute the housing stock and determine the supply and demand of housing in an open market. But they are very expensive with short-term mortgages being financed by banks. This is an area the FHA should work on with other stakeholders if it is to fulfill its mandate to Nigerians.