CHAPTER ONE
Introduction
1.1 BACKGROUND OF THE STUDY
Housing in Nigeria can be seen as an economic good, a social product or a major human right and it is important that it impacts each and every individual in a very intimate way. Housing has been of increasing importance in recent times due to its numerous dimensions specifically its direct and indirect effects on the individuals, diverse economies and the society at large (Agbola, Egunjobi and Olatubara, 2007).
The private sector’s participation in housing delivery in Nigeria is having various sectors and this may be in form of formal and informal (Adegun and Taiwo, 2011). The informal sector has produced between 70% and 90% of the houses in the country (Daramola et al., 2005). It is so far reported that small-scale private landlords in rental housing has dominated the informal-sector supply of urban housing (Ikejiofor, 1997; Adegun and Taiwo, 2011). The larger part of the houses produced by this sector is non-conventional; their construction is not in line with established procedures and frequently contravenes existing legislation (Olotuah, 2005a).
Being aware of the need to improve its socio economic conditions, a country must encourage policies that make it easier for people to have access to financial resources in order to satisfy the demand for one of the major needs which is shelter. This has resulted to the introduction of the Nigerian Building Society in 1956 which grew into the Federal Mortgage Bank of Nigeria in 1977 and the subsequent establishment of the National Housing Fund in 1992. According to Nevitt (2001), the invention of Mortgage Finance is of paramount importance as the invention of steam engine in Britain in the 18th century. Since urbanization has been globally followed by fast rising cost of making shelters available, a shortage of capital to purchase or any gap between income and shelter cost need that the only route of meeting up the cost of housing materials is to incur a mortgage debt.
On this premise, different levels of government, whether Federal, State or Local, have gotten themselves in the provision of housing by formulating different types of housing policy which the governments considered will have positive effect on the housing delivery in Nigeria. Bello and Bello (2005) pointed out some reasons for the failure of housing policies and programmes in Nigeria, some which are so much dependence on owner occupation, government involvement in direct construction of housing, fragmented and unstable housing finance, high cost of building materials and a host of others. From the above, consequently, it can be agreed that different housing policies and programmes in Nigeria have failed to achieve the reason for which they were created.
Morakinyo et al. (2017) reported the contributions of the private sectors on housing delivery considering the problems they encounter on the basis that government alone cannot fill housing demand and supply gap, in consequence there is need for private sectors to be busily participating in housing delivery. Ademiluyi and Raji (2008) observed the high cost of building materials, strict loan conditions from mortgage banks down to the unproductive government policies. In the terim, the private sectors ought to be motivated and cheered more on housing involvement through accessibility of land and mortgage loans at a low rate. Wizor and Ogbonna (2020) noted that the main housing challenge encountered by the residents is on the issue of availability and affordability because of poor housing policies and difficulty in land acquisition. More significantly, Ugonabo and Emoh (2013) identified numerous challenges that have affected the improvement of housing delivery in Port Harcourt, Nigeria which include lack of secure access to land, high cost of construction, limited access to finance, bureaucratic procedures, high cost of land registration and titling and uncoordinated policies and implementation. In addition, Mukhtar et al., (2016) examined that key obstructions to housing delivery in Nigeria include lack of effective housing finance system, unstable macroeconomic environment and difficulty in accessing land with secure tenure, high cost of building materials, shortages of skilled labour and poor infrastructural facilities; while Enisen and Ogundiram (2013) opined that land plays a key role in ensuring an effective housing delivery and as such accessibility of land should be ensured by the government for improved housing delivery.
1.2 PROBLEM OF THE STUDY
Importantly, the need for the provision of housing in any developing country cannot be exaggerated as it accounts for the bedrock of the country's national economy. Bearing in mind the significance of housing, government at all levels (local, state and federal) has always taken the full responsibility of making sure there is low cost and affordable housing via dependence on loans and credits from financial institution not recognizing the fact that the investment needed for the housing deficit is such that cannot possibly be attained by depending on the public sector to enhance public investment without increasing public borrowing (Ojuola and Martin, 2012). Housing has been globally recognized as the second most paramount crucial human need after food. According to UN Habitat (2006), housing stands for one of the most fundamental human needs and has a profound impact on the health, welfare, and social attitudes and economic productivity of the individual. It is also seen as one of the best indicators of a person's standard of living and of his or her place in society. Housing problem is one of the major issues normally discussed in the world fora today. This is due to the dire shortage of accommodation; the demands for it far surpass the number available for human living. This deficit in housing requirements in the view of Gbadeyan (2011:104) is a product of many factors amongst which include: increase population; rural urban migration; industrialization; emergence of commercial and mega cities; climatic change; natural disasters such as earth quakes, war, famine, drought and others. Public housing systems in Nigeria could be deemed to be in crisis, with thousands of people in each state of the federation on waiting lists for many years. Study has revealed that the successfulness of present housing support models is limited as these programs do not deal with the ongoing problem of limited affordable housing stock, nor do they have the ability or the resources to assist tenants facing ongoing affordability problems or other personal problems that put their tenancies at risk (Australian Housing and Urban Research Institute, 2006). Olotuah (2005) observed that the fiasco of public sector intervention in housing has been bracketed to the inability of government to accurately construe its role and know the real needs of the populace and the lack of political will to tackle the hydra headed housing problem. In the same vein, Akeju (2007) ascertained that the Nigerian housing market has great opportunities which are waiting to be tapped and Government alone cannot fill the housing gap. He further argued that Government has no business building houses but should focus on providing favourable investment climate that will bring about the desire turn around in the housing market. The problem of access to affordable housing in Nigeria for the poor are too great for any one group to solve alone. The challenge today is to fill the missing link between the mainstream financial institutions and the low income communities, together with the longterm commitments of the government and private sectors involved in housing industry to resolve numerous housing issues at the same time seeking a balance between shareholder value and social responsibility. Governments most particularly in developing countries over the last three decades have made effort to deal with the problem of adequate, affordable and sustainable housing delivery to their citizens. The Nigerian Government, in recent times, has planned to increase housing delivery on a sustainable basis to a peak level for a number of years and yet the progress is slow and the problem of large informal settlements still exists and is growing. This event has become evident especially throughout Nigeria and cities as unmatched numbers of rural migrants move into urban centres in search of employment on daily basis. On this premise, the study seeks to examine role of private participation in housing delivery.
1.3 OBJECTIVES OF THE STUDY
The study will examine role of private participation in housing delivery. Specific objectives include;
- The study will examine quality and adequate housing as an important indicator of economic development; and the private sector as the greatest contributor to housing delivery.
- Does the quality and adequate attributes the current housing crisis to ever increasing household formation and dilapidated existing stock without significant increase in new housing construction?
- To examine the challenges faced by private developers and professionals.
- To examine the determinants of affordable housing in Nigeria.
1.4 RESEARCH QUESTIONS
- what are the qualities and adequate housing as an important indicator of economic development; and the private sector as the greatest contributor to housing delivery?
- The study will examine if It attributes the current housing crisis to ever increasing household formation and dilapidated existing stock without significant increase in new housing construction.
- What are the challenges faced by private developers and professionals?
- What are the determinants of affordable housing in Nigeria?
1.5 significance of the study
This study is significant for several reasons. Firstly, it addresses a crucial gap in the existing literature by focusing specifically on the role of private participation in housing delivery. Understanding the unique challenges and dynamics faced by this population is essential for developing targeted interventions and strategies to promote private participation in housing delivery outcomes.
Secondly, the study contributes to the broader discourse on private participation in housing delivery issues, particularly in Nigerian context.
The study will be significant to scholars, researchers, professors, etc, willing to further research on the topic. The study will proffer solutions to the challenges of private participation in housing delivery in Nigeria.
1.6 Scope of the study
The scope of the study focuses on the role of private participation in housing delivery. As a result of this, the researcher has consulted with several reviews on the issues of the role of private participation in housing delivery which are appreciated for residents at a particular point in time. It also serves as a useful guide to organizations. The respondents for the study will be limited to Port Harcourt residents who are well informed on the topic.
