At 6% interest rate, Lagos State solves its housing deficit

Fadekemi Ajakaiye

Lagos State Governor Babajide Sanwo-Olu said that at a simple interest rate of 6%, Lagos State was best committed to providing affordable housing to the teeming population compared to any other organization, state or federal government.

The governor, who was represented by Housing Commissioner Moruf Akinpelu Fatai at the 2021 Housing Summit, which was recently held in Abuja, said: “In Lagos, we have so far ordered eleven housing estates. What I sell to Iponri for 30 million naira, I sell to Igbogbo for 8.5 million naira. You pay 5 percent and pay the rest over the next nine years, but we don’t allow you to sell until you’ve finished paying at a simple 6 percent interest rate.

“I challenge any organization here in Nigeria, whether federal or state, that has been able to provide this.”

Regarding the urban renewal plans, Sanwo-Olu said: “We are looking at a position that in the next 20 years we will have to think vertically, we are looking at the models of Singapore and Hong Kong, we have 50 hectares to Ijanikin so that the railroad can evacuate people to the island.

Nigerian Institution of Surveyors and Property Surveyors (NIESV) President Emmanuel Okas Wike said the country would need N24 trillion to fill the existing housing gap.

He lamented that the government’s past efforts to make housing available to the masses had failed because the private sector was ignored.

He noted that although there are many unoccupied houses in cities, especially in the Federal Capital Territory (FCT), the masses cannot afford them and therefore continue to lack decent housing.

Wike pointed out that involving the private sector could help bridge the housing gap.

Wike said the Minister of Public Works and Housing, Babatunde Fashola, had tasked certain professionals to research and come up with “genuine, reliable, scientific and verifiable data on the real housing needs of the country and to make suggestions on the way forward “.

To fill the housing gap in the country, Wike suggested the creation of a Housing Infrastructure Fund and the use of local materials by the government.

The Director General of the Federal Housing Authority (FHA), Senator Gbenga Ashafa, represented by the Director General of Purchasing, Mr. Anetor Thomas also called for government collaboration with the private sector, adding that there should be a transition from money and home ownership to the mortgage system. as practiced in the developed world.

He also urged the government to look into bank interest rates, saying the going rates were too high and unattractive for developers.

In his speech to the organizer and CEO of Housing Circuit Limited, Seun Jegede identified corruption as a major cause of the housing deficit. “Corruption is rampant in body politics, invariably affecting the housing chain and we are all to blame. The recent ICPC report on two officials who allegedly acquired more than 300 houses is a reflection of our moral decay.

The event brought together housing commissioners from different states, policy makers, professionals, real estate developers and enthusiasts. Five participants won various awards for their contributions in their various areas of the construction industry.

The winners included a retired Federation Surveyor General (SGoF), Sur. Taiwo Samuel Adeniran; the President of NIESV; Engineer Chika Felicitas Ebenebe, Regional Technical Manager, Globacom, Minna Region, Dr Babagana Adam, Director, FCTA Outdoor Advertising and Signage Department and TPL Sunday Audu, Planning Manager, FCDA.


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