The Nigerian Institution of Estate Surveyors and Valuers, Lagos State Branch, has disclosed the cost of housing increased by 300 per cent in eight years.
The institute disclosed this at its 2024 Estate Week’s press briefing held in Lagos recently.
The Chairman of the institute, Gbenga Ismail, stressed the need to declare a state of emergency in the housing sector.
According to Ismail, the right of Nigerians to homeownership as enshrined in the 1999 Constitution is being violated.
He noted, “If you look at it, the number of people that could afford homes five years ago, and the number of people today that can afford homes, how many? So, of course, you know, earnings have also dropped.
“So, if the cost of building has gone up by 300 per cent, and then your earning capacity has dropped by effective earning, that is, effective purchasing power has dropped by the same amount, how do you think people are going to afford homes?”
Ismail stated that the skyrocketing cost of rent had Made it difficult for people to secure adequate shelter in the country.
“The cost of renting has skyrocketed, making it even more challenging to secure a place to live. The average Nigerian spends around N600,000 per month on basic necessities like food, transportation, and utilities, excluding rent.
“This translates to an annual expenditure of N6-7m, without even considering the cost of housing. Factoring in the cost of rent or mortgage payments makes homeownership almost impossible for the average person.
“Therefore, the government needs to address the affordability of homeownership, as it is becoming increasingly out of reach for many Nigerians.”
He declared that homeownership was a security problem, adding that the solution should emanate by localising building materials.
He asserted, “70 per cent of building materials is imported and if 70 per cent are imported with the fluctuating exchange rate, you know the consequence.
“Now, what is the 30 per cent? We have cement; cement is how much today? We have concrete block work, part of it is cement mixed with sand, among others, and then labour, which is another expensive part.”
He mentioned that iron rods were equally imported, adding that steel companies like Ajaokuta were wasting away.
Ismail asserted that first-time homebuyers should be a top priority, noting that the government should focus on creating opportunities and offering concessions to help individuals achieve their dreams of owning their first homes.
He stated, “This will enable them to secure a stable and prosperous future. Additionally, critical workers, such as medical professionals, armed forces personnel, and police officers, should be given priority in homeownership. By securing housing for these essential workers, we can create a stable foundation for our society, and everything else will fall into place.”
The Lagos NIESV chairman further emphasised the need for government policies that would make land acquisition easier for citizens, promoting greater availability and affordability of land for all.
Last year, Vice President Kashim Shettima stated that the country needed N21tn to bridge its 28 million housing gap.
Also, the Minister of Housing and Urban Development, Mr Ahmed Dangiwa, disclosed recently that the Federal Government had awarded contracts for the construction of 3, 500 housing units in 13 states.
Punch
