Housing Delivery in Nigeria

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<p>A TERM PAPERON</p> <p>HOUSING DELIVERYAS SUBMITTED BY</p> <p>ORESEGUN ADEDAPO TF/HD/06/3510041OF</p> <p>H.N.D 1 BUILDING TECHNOLOGY TO MR. E. A. ADETOLA</p> <p>oresegun adedapo tolulope</p> <p>Page 1</p> <p>1.0INTRODUCTION1.1 BACKGROUND OF THE STUDY</p> <p>Housing is one of the 3 most significant in the sustainability of human existence with considerable economic, social, cultural and personal importance. The production of housing is has been influenced largely by policies, innovation and the ability to sustain the environment.</p> <p>Housing encompasses all social services and utilities that make life meaningful and the environment habitable. The problems that affect readily housing delivery in Nigeria are enormous and very complex. These problems in most of our urban cities in Nigeria encompasses the availability of housing units both in quality and the number available which in turn has resulted into congested homes and community and the resultant of this is the ever increasing pressure on the infrastructural facilities which will rapidly deteriorate. The situation in the rural area is even worse where the quality of housing is very poor and very low in quantity. Infrastructure like power, roads, water, drainage and every other constituent of housing is readily unavailable.oresegun adedapo tolulope Page 2</p> <p>In Nigeria today, over 7 out of every 10 people live below the minimum poverty level and 9 of every 10 are in the low income group therefore these people cannot provide housing for themselves; they then are rendered homeless or live in poor housing. The government had in place various policies as regarding housing delivery to the public but poor implementation has made it impossible to meet up with the 12-14 million housing units needed ( Balogun, 2007 ).</p> <p>1.2 STATEMENT OF THE PROBLEM</p> <p>It has been observed that majority of the people are living in poor housing or totally homeless even in urban centre to talk of the rural areas where the housing there is generally poor and very low in quantity despite all governmental policies to provide housing to the public.</p> <p>1.3 AIM AND OBJECTIVES</p> <p>The aim of this research is to find out the problems hindering the delivery of housing in Nigeria, its effects and profer solutions.</p> <p>oresegun adedapo tolulope</p> <p>Page 3</p> <p>OBJECTIVES</p> <p>-To identify problem hindering housing delivery</p> <p>-To the different housing policies analyzed</p> <p>-To itemize the effect of the problems inadequate housing delivery</p> <p>-To proffer solutions to these problems</p> <p>1.4 RESEARCH METHODOLOGY</p> <p>The data used for the purpose of this research is gotten from journals, books, past project works, analytical discussion with estate surveyors and valuers and seminar papers. 1.5SCOPE AND LIMITATIONS</p> <p>The limitations encountered while this research was time constraint, withholding of information for security reasons and the usual Nigerian factor of bribery before getting information.</p> <p>oresegun adedapo tolulope</p> <p>Page 4</p> <p>2.0LITERATURE REVIEW</p> <p>2.1.1 WHAT IS A HOUSE The oxford advanced dictionary defines house as a building made for people to live in usually for one family or a family and lodgers {guest} {Hornby et al 1984}. Technically, a house can be defined as a building or structural edifice comprising of walls with foundation, floors, roofs e.t.c. in which man lives thereby sheltering himself from the harsh effects of weather, wild animals and the element.</p> <p>Houses are for different uses but the most common ones are, i residential ii commercial iii industrial iv institutional v recreational A house is basically built on a piece of land commonly known as a plot. With respect to size of the plot and the planning regulations of the area the building is located, houses generally have spaces around them and this spaces include (I) set backs (ii) space around the building (iii) parking lot (iv) flower gardens and (v) undeveloped parcels of land.</p> <p>Most of these spaces are usually utilized as green belts or area flower garden or buffer belts shielding noise from one house to the other.oresegun adedapo tolulope Page 5</p> <p>The most common type of houses are (i). bungalow (ii). Storey-houses (iii) Block of flats (iv) multi-storey houses (v) multi-tenement houses (vi) mud houses (vi) terraced houses.</p> <p>2.1.2</p> <p>WHAT IS HOUSING</p> <p>Housing is a word that is common to many societies but most widely misunderstood especially its technical definition or meaning. Housing is therefore viewed not only is a matter of shelter together with its supporting infrastructures but more comprehensively as an evolutionary and participating process is a complex system of interactions between institutions and residents which give shape to human settlements. Breaking it down Housing comprises more than four walls and a roof, it also includes supporting infrastructure such as water supply, electric power roads, shopping facilities, recreational facilities, a good and enabling environment. Further more, institutions such as the housing corporations, mortgage financial institutions, developers, estate agents, buyers and sellers all make up the housing industry. Housing affects all individual in any society including the homeless and the destitute. Housing can also be described as accommodation with all the necessary ancillary services with it.oresegun adedapo tolulope Page 6</p> <p> IMPORTANCE OF HOUSING The importance of housing to man can never be over emphasized but a few of the importance of housing will be discussed under the following headings,I. Provision of shelter / accommodation: the provision of shelter goes</p> <p>beyond the provision of a place for man to rest his head, it goes as far as provision of safety and security from sunshine, rain and other harsh weather condition. Further more, it protects man wild animals and their attacks.II. Investment which yields a flow of income: one of the major reasons</p> <p>why people build houses is to generate income and even make profit from the house when constructed. As a result of this, they plunge into construction of houses which are let out to tenants who in turn pay rents monthly, annually or otherwise as agreed with the landlord. For example a man who owns a block of ten flats with a monthly rent of #6,000 monthly per flat, such man will be making precisely #60,000 monthly as rent or #720,000 annually. This is indeed real flow of income.III. Source of social prestige: in some communities one of the yardstick</p> <p>of assessing an individuals achievement is whether he has built a houseoresegun adedapo tolulope Page 7</p> <p>of his own or not. Any individual who has not attained this status may not be taken serious within this society of people; this is because anyone who owns a house of his own is conferred some social prestige to belong to the class of landlords.IV. Provision of employment: the construction of a houses provides</p> <p>employment for several categories of people whether professionals or artisans. Right from the purchase of the land; the land surveyor is employed to provide the survey plan, then the architect is employed to design the structure; the town planner approves the building drawing; the quantity surveyor provides the bill of quantities and then the builder builds the house. At the completion of the project, the estate surveyor takes over the building to let it out to the would be tenants. During the construction process, artisans like bricklayer, iron benders, carpenter, plumbers, electrician, e.t.c. are gainfully employed.V. Provides collateral security for loan: all around the world one of the</p> <p>lending terms for loan taking in banks is the provision of collateral security to the loan amount desired. One of the reasons why the house meet up this security is because it has a high value when ever it is offered for sale. Also, a house is durable, static, appreciates in valueoresegun adedapo tolulope Page 8</p> <p>over time, capable of generating income and always in high demand, therefore ownership of a house automatically provides the owner a form of collateral security anytime he desire to apply for a loan.VI. Durable good which can be inherited: a house is a durable good</p> <p>which can last up to 100 years which means that housing can be transferred from one person to another such as from father to son as a sort of inheritance.VII. Housing contributes to a physical development: the building and</p> <p>their accompanying infrastructure is one single factor that contributes largely to the development of town and cities. There are no settlement without houses or buildings. There cannot be meaningful physical development in any place without the construction of houses and roads. Apart from the aesthetic of beauty of housing estates, they constitute a significant percentage of physical development of such cities.</p> <p>2.1.3 HOUSING NEEDS A need is a requirement or something felt to be necessary. It also connotes a want or lack in which case when there is a need for something, it implies that, that thing is in lack and therefore wanted. It can also mean somethingoresegun adedapo tolulope Page 9</p> <p>that is very necessary, very much required in order to fill up some gap or want. Applying this idea of need to housing, we can explain housing need to mean the minimum shelter or accommodation required to meet the basic minimum requirement of a family or an individual. Viewed on a general sense, housing needs relate to standards of accommodation, deemed acceptable by society. Housing need is fairly difficult to measure precisely due to the fact that the range and degree of needs varies considerably. However, a minimum standard of housing is necessary for a household to meet its physiological and psychological requirements can be taken as Housing needs. Many people in Nigeria are homeless including destitute who roam about the street of urban centers and sleep in the markets and fly over bridges at nights in cities such as Lagos. Such phenomenon readily exposes the inadequacies of housing accommodation hence, more housing is needed. It is only a good estimation of housing need in a given society that can lead to a lasting solution of housing delivery. 2.1.4 HOUSING MARKET A housing market is a market where housing goods and service are sold and bought by virtue of their being demanded and supplied.oresegun adedapo tolulope Page 10</p> <p>Housing market may not necessarily be public buildings or open</p> <p>spaces</p> <p>like common market. Nevertheless, housing markets are dotted allover a nations landscape. It is like a system or an industry. Those who trade in the housing markets know where and how to locate themselves in order to buy and sell housing goods and services. Rapkin et al {1982} described a housing market area as the physical area in which all dwelling units are linked together in a chain of substitution, where each can be considered as a substitute of the other.</p> <p>Thus by this definition, we can identify several housing markets in Nigeria. 2.1.5 HOUSING QUALITY Housing quality describes the state, nature or standard of housing with respect to acceptable standards. Thus a good quality housing implies a level of housing which has no less than the minimum of factors of which the most important is income. The level of income is one of crucial factors that determine the type and quality of housing a household obtains in any given market. This observation is on the part of the consumer of the housing good and services and it is true of the Nigerian housing market which is operated essentially on the principles of free market enterprise.oresegun adedapo tolulope Page 11</p> <p>2.1.6 HOUSING FINANCE Housing finance literally means finance for housing or real estate development. However, it means more than that, it also means or includes the source of the finance, the management of the finance and all various operations on the source, management, procurement and utilization as well as repayment of such finance. Housing finance equally means the same thing as mortgage finance except that while housing finance is a general term encompassing all the transactions in the housing market, mortgage finance can be applied to single or individual housing financial transaction.</p> <p> SOURCES OF HOUSING FINANCE There are two (2) major sources of housing finance which are the public and private sources. This is shown below in the diagram.</p> <p>oresegun adedapo tolulope</p> <p>Page 12</p> <p>HOUSING FINANCE</p> <p>PUBLIC</p> <p>PRIVATE</p> <p>INFORMAL</p> <p>FORMAL</p> <p>FIG. 1: Illustrating the various types and sub-types of housing finance sources Breaking this diagram down there are some housing finance sources that falls into these groups. (a). public sources i. ii. iii. Federal Government Staff Loan Scheme Federal Mortgage Bank Federal Housing AuthorityPage 13</p> <p>oresegun adedapo tolulope</p> <p>iv.v. vi.</p> <p>State Government Staff Housing Loan Scheme State Government Housing\ Property Development Corporations State Governments Home Ownership Companies State Government Mortgage Banks Local Government Staff Housing Loan Scheme National Provident Fund State Savings and Loan Scheme</p> <p>. vii. viii. ix. x.</p> <p>(b). private sources. These can be sub divided into 2 viz private formal and private informal. 1. private formal sources i. ii. iii. iv.v.</p> <p>Primary Mortgage Banks Commercial Banks Merchant Banks Development Banks Financial and Investment Companies Insurance Companies Trust Funds Co-operative and Thrift societies</p> <p>vi. vii. viii.</p> <p>oresegun adedapo tolulope</p> <p>Page 14</p> <p>2. private informal sources i. ii. iii. iv. v. vi. vii. viii. Esusu system Thrift system Co-operatives Friends Family\ relatives Personal savings Money lenders Other sources</p> <p>2.1.7 HOUSING POLICIES AND PROGRAM Housing policy is written document which is usually comprises specific objectives, strategies and programs aimed at solving the housing problems or meeting with the ever-increasing housing needs and demands of a country. {Ezenagu, 1990} Housing policy should contain the governments views, policy objectives, strategies and programs all aimed at solving the housing problems of a particular country. Housing policies usually go together with housing programs. Housing policies are like principles while housing programs are like practice. Again, it can said that housing policies are like theories while programs are likeoresegun adedapo tolulope Page 15</p> <p>practical; both of which are aimed at solving various housing problems bedeviling a particular country or society. Below is a list of some housing programs initiated in Nigeria at one time or the other.i.</p> <p>The public \mass housing programs of the third national development plan period (1975-1980).</p> <p>ii.</p> <p>The public \mass housing program of the fourth national development plan period (1985-1985).</p> <p>iii.</p> <p>The public housing program of the Lagos state government during the defunct second republic (1978-1983) spearheaded by Lateef Jakande.</p> <p>iv.</p> <p>Lagos state housing program fronted by Lagos state development program corpor...</p>