Worried by the increasing housing deficit in the country, stakeholders in the sector have called for the re-evaluation of the nation’s extant laws. According to them, Nigeria’s laws, as presently constituted, hinder the growth of the housing sector. They noted that the sector had the potential for job creation, socio-economic growth, enhanced Gross Domestic Products/internally generated revenue of states and improved security, amongst others.
They observed that in the light of the huge unemployment in the country and its accompanying socio-economic stress and the spate of insecurity, there was a need by relevant authorities in the sector to appraise the real estate industry from the perspective of what it could do to help solve the housing crisis facing the citizenry currently.
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They stated this during the 2019 Housing Summit and Exhibition organised by the South-East Zone of the Real Estate Developers Association of Nigeria, in Enugu. Making a presentation at the summit, which had as its theme, ‘Promoting and showing beneficial strengths, innovations and incentives of the housing industry, the National President of Real Estate Developers Association of Nigeria, Ugochukwu Chime, noted that Nigeria’s current mortgage sector contribution to the nation’s GDP was less than one per cent owing to non-workable laws.
According to him, this is a sharp contrast to what obtains in countries such as South Africa, Ghana, the United Kingdom and the United States of America whose mortgage contributions to their GDP currently stood at 20 per cent, four per cent, 65 per cent and 76 per cent, respectively. According to Chime, data from the Central Bank of Nigeria revealed that the total number of mortgages in Nigeria was less than 100,000, regretting that this was not suitable for a country of over 200 million in population.
He said, “Over the years, the potential in real estate sector of our economy for job creation, enhanced socioeconomic growth, increased GDP/IGR, improved security amongst other has not been harnessed and utilised for the mutual benefit of players and the populace. But the paradigm shift in the homeownership approach has called for the re-evaluation of our extant laws.
“From available statistics, Nigeria’s current mortgage sector contribution to our GDP is less than one per cent. From the CBN data, the total number of mortgages in Nigeria is less than 100,000 for a population of almost 200 million. The real estate sector when synergised with other sectors of the economy holds out a massive opportunity for turning around our fortunes, as a country.”
The Managing Director, Nigeria Mortgage Refinance Company Limited, Mr Kehinde Ogundimu, said stringent property title registration cost was stifling housing delivering in the country.
Source: Punch – https://punchng.com/stakeholders-call-for-re-evaluation-of-housing-laws/