Role of Housing Devt From Cooperative Societies in Lagos State
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Transcript of Role of Housing Devt From Cooperative Societies in Lagos State
8/19/2019 Role of Housing Devt From Cooperative Societies in Lagos State
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
1
S/N NAME OF
COOPERATIVE
SOCIETY
NAME OF
EXECUTIVE
INTERVIEWED
DESIGNATION NAME OF
INTERVIEWER
1 Cogency Staff Ikj CMSLTDAddress: 3, Obafemi
Awolowo Way, Ikeja
Mr. Adelaja T. President
ODILIDAMILOLA E.
130405021
2 Lagos Airport HotelCMS LTD (Ikeja)Address: 111, ObafemiAwolowo Way, Ikeja
Mr. Kayode Adeleye President
3 X3m Ikeja CMS LTDAddress: 6a, FolusoAlade Street, AwuseEstate, Opebi Ikeja
Mrs. Esthella Edward FinancialSecretary
4 VAP Staff CMSAddress: 35, MobolajiJohnson Avenue,Alausa Ikeja
Mr. Olawunmi Olatunji President
OBAFEMI NOAH OLUJIMI
140405516
5 Vanni InternationalSecurity Systems CMSAddress: 1, VanniClose, Off AdeniyiJones, Ogba-Ikeja
Mr. Omoh Anthony President
6 LARA DAY School(Ikeja) CMS LTDAddress: 19, Adeniyi
Jones, Ikeja
Mrs. Ebong S.NFinancial
Secretary/ Ex-Officio
7 SKG Pharma CMS LTDAddress: 7/9 SaparaStreet, Off Oba AkranAvenue, Ikeja
Mr. Charles M. Treasurer
ODERINDEOLAOLUWA M.
130405006
8 Vitafoam CMS NigeriaLTDAddress: Oba-AkranAvenue, Ikeja
Mr. Bola Oniyinde President
9 BEL-PAPYRUS CMSLTD
Address: Plot 6,Kudirat Abiola Way,Ikeja
Mr. Julius Olowookere President
10 Irewola Unique CMSLTDAddress: 8, JamiuOgunbewonu Street,Oniyedi Estate Isheri,Alimosho-Lagos
Mr. Onigbinde M.S President
UDOMEMMANUEL A.
110405057
11 Winners (Ikotun) CTCSAddress: TechnicalCollege, Ikotun Lagos
Mr. Ogundipe President
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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A. INTRODUCTION
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 {Hornby et al 1984}. Technically, a house can be
defined as a building or structural edifice comprising of walls with foundation, floors, roofs etc.
in which man lives thereby sheltering himself from the harsh effects of weather, wild animals
and the element.
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.
setbacks,
ii.
space around the building,
iii.
parking lot,
iv.
flower gardens, and
v.
Undeveloped parcels of land.
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.
WHAT IS DEVELOPMENT?
Development is a term that economists, politicians, and others have used frequently in the
20th century. The concept, however, has been in existence in the West for centuries.
Modernization, Westernization, and especially Industrialization are other terms people have
used while discussing economic development. Economic development has a direct
relationship with the environment and environmental issues.
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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Now, what is HOUSING DEVELOPMENT?
Housing Development is a structured real estate development of residential buildings. Popular
throughout the United States and the United Kingdom, they are often areas of high-density,
low-impact residences of single-family detached homes, and often allow for separate
ownership of each housing unit, for example through subdivision.
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.
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.
Housing market: This is described as general market of houses being purchased and sold
between buyers and sellers either directly by owners or indirectly through brokers
(Investorworld, 2011). It is also defined as the supply and demand for houses, usually in a
particular country or region (Housingmarket, 2008). The Real estate marketing involves the
sales of the property.
Property development: There is no how a good discussion will be done on housing without
taking a look at Property development. This concept according to Ojo (2006) is an economic
activity which involves developing a bare but a ripe site or re development (refurbishment,
conversion or alteration) of a developed site. Nuhu (2007) saw the provision of
accommodation for occupation of the person carrying out the development or for someone else
as the basic reason for property development. Sangosanya (1987) considered the objectives of property development to include:
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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An occupier: This is done by Institution to suite its need and image.
A property company: The Company builds for profit.
An Investment: This like the above company is interested in the financial gains from
the development.
A local authority: This may not be for financial gain but for social benefits accruing
to the community it serves.
COOPERATIVES BODIES: The idea of Cooperatives housing have started long time ago
when individuals planning to own a house seek help from relatives, in-laws, neighbours and
friends (Wahab, 1988). This concept has been successfully tested and certified in countries
like Italy, United Kingdom, Zambia, Sweden and Philippines (Daramola, 2006). It is suited tomeet the needs of low income earners who constitute the vast majority of Nigerians. The
members of the Cooperatives are able to enjoy housing loans for the construction of their own
housing units. The Cooperatives are also engage in land acquisition, processing of land title
documents and building materials acquisitions for its members (Olotuah, 2006).
Housing Cooperatives according to International Cooperative Alliance (1995) is a “legal
association formed for the purpose of providing housing to its members on a continuing basis”.
It is also defined as “the cooperation of people or families organized as a group to provide
housing to its members” (Ogunnubi, 1997). According to Agbola (1998), housing cooperatives
are usually organized as social associations but are more committed to the financial activities
of individuals and thus the collective interest of their members”.
These associations have been playing significant role in the delivery and provision of housing
services in urban cities in order to meet up with the attendant increasing demands for housing
requirements. They are becoming more popular and viable in the development of housing
market in Nigeria. It has brought an all-round improvement in the standard of living of the
people (Diacon, 1994; Daramola, 2006). The associations are not catering for the needs of
their members alone but also that of non-members as well.
They are engaged in building hostels for students, residential houses, shops and estate houses
for the people most of which are low income earners; at affordable price compared with that
of Private estate developers. However, the Cooperative Societies are facing challenge of high
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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inflation rate, which to certain extent is affecting their performance in the real estate market
development (Olotuah, 2006).
The Federal Government of Nigeria in realizing that it cannot solve the housing problem alone
has involved the corporate bodies to contribute their own quotas towards achieving thisobjective of housing for all. It was evident that most of these companies have total neglect for
the housing needs of their workers. This consequently made the Government came to the
rescue of these workers through the Promulgation of Employee housing Scheme (Special
Provision) decree 54 of 1979, thus compelling any employer of 500 employees to provide a
minimum housing of 50 units of which 75% should be available for non-executive staff (Nubi,
2000).
This would have been the best way to solving the employee’s problems but this program is
faced with serious challenge of intermediaries who increase cost and there is also problem of
ownership after retirement. However, the program still offers better prospect for the
Private employees because the end users of housing can easily be reached (Nubi, 2000).
Estate developers/agents: The private developers or estate agents activities were concentrated
in Lagos in early 1990 and they play significant role in the development of the Nigerian
housing market (EFin A and FinMark Trust, 2010). They ensure adequate shelter is providedto meet the demands of the increasing number of people having housing needs. They often
employ various finance techniques such as Turnkey, Pre-letting and Joint finance to construct
housing units for the people (Nubi, 2000). These finance methods are briefly discussed
below:
Turnkey: This is a form of contract whereby the contractor has total responsibility for
building and probably commissioning the housing units before handing it over to the
buyer. The housing units are designed to meet particular specifications at fixed price.
Pre-letting: The Private developers build the housing units for renting or hire purposes
and oversee to the management of the property.
Joint finance: The housing project is funded by both the private developer and
mortgage or a finance institution, ownership is later transferred to individual acquiring
the property. In case of rented property the developer supervises the management of the
property.
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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B. STATEMENT OF THE PROBLEM
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.
C. AIM & OBJECTIVE
The aim of this research is to provide a critique of existing sources of supply and make findings
from our fieldwork to decide whether social societies should be supported as housing suppliers
and how this can be achieved.
D. RESEARCH METHODOLOGY
This research was carried out in February/March 2016 at Ikeja, Lagos State Nigeria. The
method of data collection was Survey, using Questionnaire Instrument for the study.
There are three types of questionnaire designed for the study:
Cooperatives without Land or Housing Project
Cooperative with Land for Housing Development Purposes
Cooperatives that have constructed housing units
During the interview, the questionnaire that was used to ask the questions with respect to the
cooperative society was the very one that was in total relations to the position of the particular
cooperative society. The interview apart from the writing down and ticking boxes, we also
recorded the interview so as to recover any point that has been missing during the writing
moments. At the end of the day, it was realised in quick succession that most of the cooperative
society we interview do not currently have any constructed housing project or Lands while
other are still in the process of getting Land.
E. LIMITATIONS
The limitations encountered in performing this research was time constraint, communication
barriers in contacting the presidents and location of some of the cooperatives visited whichwere a little beyond the exact location given to us from the initial database.
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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F. THEORY
In Lagos, the LSDPC (Lagos State Development and Property Cooperation) plays the
role of providing excellent houses and related services with utmost maintenance culture with
a view to its customers’ satisfaction.
The provision of modern housing schemes and the transformation of the slums and ghettos
in Lagos dates back to 1928 when the Lagos Executive Development Board (L.E.D.B.) was
inaugurated. Amongst other things, the L.E.D.B. was charged primarily with the task of
getting rid of the filth and unhealthy living conditions which existed then in Lagos. The Board
was also to transform the slum areas and ghettos into a planned and habitable environment.
Although, the Board was the sole executive authority for planning and development both in
central Lagos and its environs, the maintenance of its constructed roads, drains and open
spaces was the responsibility of the Lagos City Council. The vetting of building plans was also
shared with the City Council, an awkward arrangement which often resulted in the delay of
approval of building plans. The attendant frustration of private developers often times led to
contravention of planning regulations by developers.
However, subsequent expansion of the city necessitated the involvement of the Ikeja Area
Planning Authority (I.A.P.A) in the control of development and provision of public housing
outside the city. The (I.A.P.A) on one hand had full powers to vet building plans and control
private development in its area of jurisdiction but such plans had to be forwarded to relevant
local council for health approval. With the creation of Lagos State in 1967, the need to stem
the lack of proper coordination between the existing planning authorities involved and the
unnecessary dissipation of energy without meaningful results necessitated the formation of a
central body to be charged with the duties of the different bodies. Consequently, in 1972, the
Lagos Executive Development Board (L.E.D.B.), Ikeja Area Planning Authority (I.A.P.A.),
and Epe Town Planning Authority (E.T.P.A.), metamorphosed into what is now known as
Lagos State Development and Property Corporation (L.S.D.P.C). The L.S.D.P.C. Edict
No. 1 of 1972 bestowed legality on this metamorphosis.
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HOUSING DEVT IN LAGOS STATE (THE ROLE OF THE COOPERATIVE SOCIETIES)
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Upon its creation in 1972, L.S.D.P.C. which inherited the liabilities and assets of its three
predecessors was completely divested of all their development control powers. These were
transferred to the Lagos state Ministry of Works and Planning (L.S.M.W.P.), which became
responsible for planning and development control throughout the State. But after much
persuasion, the power to control development on its estates was transferred back to L.S.D.P.C.
in 1978.
Under the present arrangement; the Corporation has a fully commercialized status with a
Managing Director/Chief Executive Officer at the helm of affairs.
Acting CEO of LSDPC however is Wasiu Adedamola Olasunkanmi Akewusola
FNIQS, RQS., M.ICIArb., B.Sc.(Hons) QS Ife, M.Sc.(Construction Mgt.) Unilag
Housing generally has not ranked high on the scale of priorities for social spending and state
governments have tended to rely upon local authorities to meet the problem. Efforts at
providing low-cost rural housing have been minimal, despite the creation of the Federal
Mortgage Bank of Nigeria in 1977, and shantytowns and slums are common in urban areas.
Overcrowding in urban housing is a serious problem. It has been estimated that about 85% of
the urban population live in single rooms, often with eight to twelve persons per room. Living
conditions are poor. In 1996, only about 27% of urban dwellers had access to piped water.
Less than 10% of urban dwellers had an indoor toilet.
As of 1979, about 37% of all housing units were cement or brick roofed with asbestos or
corrugated iron; 34% were mud plastered with cement and roofed with corrugated iron. In the
same year, 44% of urban dwellings were rented, 37% were owner occupied, 17% were rent
free, and 2% were "quasirented" at below-average rates. The total number of housing units in
1992 was 25,661,000.
HOUSING, POPULATION AND DEVELOPMENT IN LAGOS, NIGERIA
1. POPULATION, DEVELOPMENT AND HOUSING IN LAGOS
The context in this term is to examine the trend of population, its organic growth, the
proportion of housing requirements and response mechanism by various stakeholders.
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1.2.1
POPULATION AND SETTLEMENT CHARACTERISTICS
Lagos State is the smallest state in Nigeria from a land area of 4km2 on the Island, and an
estimated population of 28, 518 in 1871 to an area of 62.8km2 and population of 126,108
in 1931. Between 1901 and 1950, population growth rate was at 3.3% per annum while it
rose to 18.6% between 1950 and 1963 [George, 2010]. The increment in population is
complimented by vibrant economic status which continued to encourage population
growth, Therefore, in 1963, the total population increased from 1.4 million to 3.5 million
in 1975. In 1978, the population grew from 3.8 million to 4.13 million in 1979 and 5.8
million in 1985. In 1990, the population was 7.7 million, 10.28 million in 1995, 13.42
million in 2000 and 17.55 million in 2006.
Population Trend in Lagos from 1871 to 2006
YEAR POPULATION
(in million)
1871 0.03
1931 0.13
1963 1.41975 3.5
1978 3.8
1979 4.13
1985 5.8
1990 7.7
1995 10.28
2000 13.42
2006 17.56
Currently, the geographical area has expanded to about 356,861 hectares of which about 21%
equivalents to 75,755 hectares are wetlands, yet it has the highest estimated population of 18
million representing 12% out of a national estimate of 150 million with annual growth rate of
between 6% and 8% compared to 4 -5% country growth rate and global 2% growth rate. It is
the second most populous city in Africa after Cairo in Egypt and estimated to be the fastest
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growing city in Africa and the seventh fastest growing in the world with a population increase
of about 600,000 persons per annum. Lagos population is growing ten times faster than New
York and Los Angeles with grave implication for urban sustainability and housing delivery.
At its present growth rate, the United Nations had estimated that, Lagos state will be the third
largest mega city in the world by the Year 2015 after Tokyo in Japan and Bombay in India.
Over 91% of the total population lives in the metropolis with a population density of about 20,
000 persons per square kilometre in the built-up areas of Metropolitan Lagos. The occupancy
ratio is 8 – 10 persons per room with 72.5% of households occupying one-room apartment
[Lagos State Ministry of Housing, 2010].
Fig 1: Housing units allocated
by the LASG Fashola
administration
Based on its highurbanization rates and
dense population, the
poverty level in the Lagos Metropolis is quite high. The Lagos State Government [2004]
estimates that 51% of men and 54% of women resident in Lagos live below the poverty line.
Urban poverty is the scourge of most cities of the 3rd world countries and Lagos is not an
exemption. This is clearly manifested in the growing number of largely unskilled, unemployed
and homeless migrants from the rural areas of the country into Lagos, who find it convenient
and affordable to live in existing slum communities or create new ones that are not serviced
by basic urban facilities, services and amenities [Abosede, 2006].
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1.2.2. THE CHALLENGE OF HOUSING
While the growth of the population in the metropolitan Lagos has assumed a geometrical
proportion, the provision of urban infrastructure and housing to meet this demand is, not at
commensurate level. This has resulted in acute shortage of housing to the teeming population
with Lagos alone accounting for about 5 million deficit representing 31% of the estimated
national housing deficit of 18 million [Oshodi, 2010]. The extent of the housing shortage in
Lagos is enormous. The inadequacies are far-reaching and the deficit is both quantitative and
qualitative; even those households with shelter are often subjected to inhabiting woefully
deficient structures as demonstrated in the multiplication of slums from 42 in 1985 to over 100
as at January 2010. The urban poor, who are dominant in Lagos, are transforming the city to
meet their needs, often in conflict with official laws and plans. They reside in the slums and
squatter settlements scattered around the city and are predominantly engaged in informal
economic activities which encompass a wide range of small-scale, largely self-employment
activities. 60% of residents are tenants and have to pay rent as high as 50-70% of their monthly
incomes since most of the existing accommodations are provided by private landlords [Roland
Igbinoba Real Foundation for Housing and Urban Development, 2009]. The concentration of
housing and income levels
has stratified the metropolis
into various neighbourhoods
of low-income/high density,
medium income/medium
density and high income/low
density [Lawanson, 2007].
Fig 2(a): slum settlement in the
Ajegunle axis of Lagos State
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Fig2(b): slum settlement in Makoko area of Lagos State
To stem the housing crisis, the Lagos State Government had a documented history of housing
provision fr om the days of Lagos Executive Development Board [LEDB] in 1950’s. LEDB
was able to delivered 4, 502 housing units, within 17 years, from 1955 to 1972 when it was
dissolved with the population rising from 1.4 million in 1963 to 3.5 million in 1975.
In 1972, the functions of LEDB were transferred to Lagos State Development and Property
Corporation [LSDPC] as the sole agency responsible for the provision of Housing in Lagos
State. Since its inception in 1972, LSDPC has been saddled with the execution of gigantic low-
cost housing program of the early eighties which yielded close to 10, 000 units. In 1979 under
the leadership of Alhaji L. K. Jakande, LSDPC took a dynamic and elaborate turn with
emphasis on low cost flats to cater for the needs of the low-income earners. Government
realized that only the supply of housing units on a large-scale either through Government or by individuals themselves can reduce the chronic shortages.
By 1992, about 17, 000 units were built in several locations which included Abesan [4, 272
units], Amuwo Odofin [2, 068], Iba [1, 560] Ijaye [812], Ijeh [62], Isolo [3, 632], Ojokoro
[534] [Mayaki 2009].
Thus between 1972 and 1999, LSDPC was able to delivered 20, 120 housing units while 1,
818 housing units were delivered from 2000 to 2010. It is important to note that the population
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rose from 3.5 million in 1975 to 10.28 million in 1995 and from 13.42 million in 2000 to about
18 million in 2010. The joint venture housing projects yielded 331 units while the ongoing
projects at Lekki Scheme 2 and Apapa GRA will yield combined units of 150. The proposed
residential projects at Victoria Island and Abijo are expected to increase the stock by 236 units.
The total stock from LSDPC excluding the proposed units over the 38 year period is 22, 419
housing units, that is an average of 590 units per annum [LSDPC, 2010]. Lagos State
Government in 1980 also established the New Towns Development Authority [NTDA] which
organ provided site and service schemes for individual middle-income housing. A very
laudable idea but it has not impacted much on the housing delivery in Lagos. Their attempt
has included Lekki scheme 1 and 2, Amuwo Odofin and Isheri North [Mayaki, 2009].
In recent times the Ministry of Housing and Lagos Building and Investment Company [LBIC]
did commence direct construction of houses in Lagos thus compromising the mandate of
LSDPC. The Ministry of Housing till date has constructed 18 No. housing estates with 5 others
under construction. The total units of this strategy are less than 5, 000 units while the LBIC
intervention will yield less than 1, 500 units [Lagos State Ministry of Housing, 2010].
Aside the direct construction approach, the Ministry and other government agencies adoptedother options of delivering houses to the citizens, among which are public private partnership
in housing delivery, urban renewal and regeneration program, establishment of new towns,
provision of site and service scheme. The combined stock of all these strategies is less than 5,
000 units per annum in a state requiring 500, 000 units per annum to bridge the deficit of
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estimated 5 million over the next 10 years. Even, the recently launched Lagos Cooperative
Home Ownership Incentive Scheme [Lagos – CHOIS], in collaboration with the private sector,
is expected to deliver 10, 000 housing units over the next four years at unaffordable rate of
N11.6 million for a 2 bedroom apartment.
Fig 3(a): A newly built housing estate by the LASG at the evicted slum of Badiya East in Lagos 2015.
All the programs embarked upon by the Lagos State government and its different agencies are
aimed at regenerating the urban fabric, sustaining environmental quality and increasing
housing supply. These efforts are ideal, but they seems not to be proportionally coordinated
within the context of increasing accessibility to homes for the low-income earners and ensuring
security of tenure for the same group. While, the houses for the upper income segment of the
society has never been in short supply, housing for the poor has remained a vexed issue with
various government programs unable to meet the deficit recorded in this segment.
The informal private sector; in Lagos comprising people of different income background
resorted to self-help housing strategy. This sector has taken the risk of buying untitled land
from informal market dominated by cabal popularly referred to as “Omo -Onile’’. After the
purchase of the land, majority of these people will take it upon themselves to construct their
own roads, providing water and extending electricity for kilometers to provide a roof over their
head. Over 90% of housing supply in Lagos is from this sector with the resultant effects of
lack of standardization and distorted urban planning system.
A very good initiative introduced by former governor of Lagos State, Mr Babatunde Raji
Fashola (SAN) in facing the housing issues in the state to an extent was by introducing Lagos
H.O.M.S (Home Ownership Mortgage Scheme), an initiative to encourage and support home
ownership with First-Time Buyer (FTB) residents of Lagos State to
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Fig 3(b): Housing scheme developed by Lagos HOMS
purchase decent and affordable homes through the provision of accessible mortgage finance.Lagos HOMS is administered by the Lagos Mortgage Board (LMB). The state developed
housing estates in line with the scheme simultaneously in all five (5) divisions of the state in
such places as Igbogbo in Ikorodu, Sangotedo, Mushin, Ilupeju, Omole, Magodo, Lekki and
Badagry.
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1.2.3. FACTORS AFFECTING HOUSING DELIVERY
At the bottom of housing fiasco in Lagos lies the problem of land accessibility, stunted
financial and mortgage system, exorbitant prices of building materials and disproportional
capacity building in the sector. Land has been described as the fulcrum of all types of
development in any society, the constrain poses by its inaccessibility in Lagos has reduced the
provision of affordable housing for Lagos residents, about 70% of whom live below the
poverty line. Many provisions in the 1978 Land Use Act have denied intending housing
developers from delivering the products in affordable quantity. The Land Regularization
program introduced by the Lagos State Government in 2006 has not demonstrated full capacity
to enhance access to land for the poor and low-income groups. It takes more than 217 days
and at unaffordable cost to procure land title from the Regularization Directorate as against 45
days mentioned in the program document [Oshodi, 2010]. The cost and bureaucracy
discouraged the beneficiaries of the program from massive participation. The land title is a pre
requisite for building permit; hence, many houses sprang up without planning permissions and
are classified as illegal developments by the government.
Housing finance and mortgage system in Lagos cannot be totally ostracized from what is
obtainable in Nigeria. Generally, there is no credit or finance structure available to the low-
income groups for land, housing and basic services in Nigeria. The only window for all
Nigerians to access financial facility for land, housing and basic services is the National
Housing Fund [NHF] established in 1992.
The participants are expected to contribute 2.5% of their monthly income with a primary
mortgage institution, for a period not less than six [6] months in order to qualify for a maximum
loan of N15 million [US$60,000] at 6% annual interest payable over a period of 25 years. The
scheme is operating in all States of the Federation with about 101 Primary Mortgage
Institutions [PMIs] as the primary savings and lending agents. 63 of these PMIs are located in
Lagos while the rest 38 are spread across the remaining 35 states of Nigeria. Federal Mortgage
Bank of Nigeria is the regulator, secondary fund repository and loan approving authority for
the NHF contributors. As at December, 2010, record has shown that a total sum of N50.68
billion was approved out of which N23.89 billion representing 47% was disbursed to 16, 468
applicants through 57 PMIs. The average amount approved is equivalent to N1, 450, 692
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[US$5, 802] per beneficiary. Significant numbers of Nigerians who are mainly in the informal
sector of the economy were denied participation from this scheme because of low deposit
mobilization, inability to track their monthly income and lack of formal titles to their land
holdings. These, among other factors, account for low rate of disbursement to 16, 468
beneficiaries across the country over a period of 19 years, in the face of estimated 18 million
national housing deficits.
The finance structure is such that neither the builder nor the consumer can readily obtain
finance for housing due to the stringent conditions attached to mortgage loan and high interest
rates at the commercial market. Out of the estimated 10.7 million existing housing units in the
country, statistics have shown that about 88% are self-built with little or no mortgage
attachment. That is why mortgage facilities are of no consequence to the nation’s Gross
Domestic Product [GDP] and the whopping N35 trillion require to finance the 18 million
housing deficit in Nigeria remains elusive [Mortgage Banking Association of Nigeria, 2010].
Since 1986, the prices of building materials have been on the upward trend with significant
effect on the poor families’ home construction. Between 1986 and 1997, marble price
increased by 555% while a ton of mild steel reinforcement increased by 35% over the same
period. The rate of price increase between 1997 and 2005 ranged from [N586 to N750] 27.95%
for emulsion paint and [N2, 300 to N12, 000] 421.7% for sharp sand. Cement, a basic
component of housing construction in Nigeria rose from N23.50 per bag in 1986, N420 in
1997, N1, 150 in 2005 to N1, 800 in 2010, an increment of about 7, 600% over a period of 24
years. During the same period, the purchasing power of average resident in Lagos have
declined with non-commensurate income wage and commitment of over 40% of income to
housing expenditure against the United Nations recommended 20% [Akinmoladun and
Oluwoye, 2007].
The problem of inadequate housing for the citizens in Lagos is further aggravated by the
declining budget for housing by the government. In 2000, N667 million representing 4.05%
of N16 billion budget was earmarked for housing while N776million representing 1.42% was
budgeted in 2005. Of N224.6 billion total budget for the year 2010, only N6 billion
representing 2.7% was earmarked for housing [Lagos State Ministry of Housing, 2010].
Housing problems appear intractable to the government.
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In the absence of any significant affordable housing strategy by the State government, citizens
have continued to explore different approaches to accommodate themselves. In the opinion of
the government, these approaches are in gross violation of town planning principles and mega
city status of the State; hence the response has been forceful eviction and demolition of self-
developed homes.
2. REQUIRED INTERVENTION EFFORTS
It is apparent from the foregoing that the state government is overwhelmed by the housing
quandary and lack the necessary inventiveness to resolve the same. Therefore, the situation
requires the intervention of all stakeholders in land, environment, housing and urban
development towards the resolution of the housing crisis. The roles of civil society in
preventing forced evictions, illegal demolition of houses, creating awareness among the
inhabitants of slums on their housing rights, researching into adaptable and best practice of
housing delivery to the low-income groups, facilitating the institutionalization of affordable
housing policy, and engaging in the development of affordable housing becomes very critical
in achieving sustainable housing delivery framework for the teeming population of the state,
especially the vulnerable groups.
G. RESULT & FINDING ANALYSIS
One important lesson we got from our experiences on the field is that the Federal &
State Governments should not engage in direct housing construction. Studies carried out have
shown that individuals build better and cheaper houses and at faster rate than the government
agencies depending on how deep his/her pocket is. Another lesson is that the government
should encourage the use of local building material for construction so as to reduce building
cost. This has been successfully done in countries like Tanzania, and Sweden. Entrepreneurs
wishing to go into the production of building material should be encourage through tax relief
and incentives. Government should promote alternative strategies for house construction. For
example, the government might acquire land; lay them out and service them with basic
infrastructures before making them available for sale to individual needing them. It is the
opin ion of this group that the adoption of the various suggestions made above the housing
problems in Lagos State could be successfully tackled by leasing out lands for citizens ready
to build on them as this is one factor that hinders housing development in the state as it is the
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basis for any housing development and more housing units constructed for citizens of the state
that can afford them as they usually turn out to be expensive especially in locations like the
“island”.
About 60-70% of the cooperatives visited fell under the “no land or housing project”
category. Reasons being that they were just recently established or still find lands available for
sale to be quite on the high side as they would rather prefer giving out loans to members to
buy lands and then develop their houses to their taste instead which according to few of the
presidents and executives spoken to felt rather comfortable with. Only a very few of the
cooperatives acquired their land in bulk which dated as far back as more than 15 years ago.
Therefore, we can see that these kind of cooperative societies are old but then the locations of
the land gotten then are either by the boundary of Lagos and Ogun or the undeveloped parts
of Lagos which in these days are just developing via the amiable efforts of the Lagos State
Govt. These cooperatives however had issues with land rustlers popularly known as “Omo-
Onile” in this part of the world claiming parts of their lands due to the expanse of land acquired
(as much as an acre of land or less) which we know would take quite some time, even years to
develop which as a result attracts land rustlers in taking bits by bits of the land before finally
getting out of hand. But then, some of these land rustlers pay some certain amount to the
cooperatives (owners of the land) to lessen the disagreement between both parties.
Hence this implies that most of the Cooperative Societies have made significant contributions
to the development of the Nigerian Housing Market within the period of their existence. The
major problems facing these organizations are lack of finance (38%), High cost of building
materials (21%), Cost of land (17%), Poor economic conditions (11%), Government policy
(7%) and Poor infrastructural facilities (6%).
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Fig4(a):Housing units constructed and developed by a cooperative society in an unknown location on the
Lagos-Ibadan expressway
Fig 4(b): Land owned by a
cooperative in Isheri-
North part of Lagos.
H. THE DISCUSSION AND STATISTICS
The problem of lack of finance has become prominent because of the fact that most Private
developers have found it difficult to get fund to finance housing projects. This may be as a
result of stringent conditions given by the Banks for granting loans to customers. In Nigeria,
most Banks are not willing to give loans to customers without providing the necessary
collateral securities because of the fear of bad debts and non-recovery of such loans. The cost
of building materials have continued to increase as a result of high inflation in the economy
and dependence on imported materials by the construction industry.
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The price of Cement which forms the major raw material for the construction industry has
continued to fluctuate and soar up, making it difficult to arrive at correct and reliable cost
estimate for the constructed houses. There is also increase in cost of land, most especially in
the urban areas, despite the fact that there is poor economic condition which affects the
standard of living of the people and purchasing power. This consequently, affects the level of
development in the Nigeria housing market. The average years stayed by tenants in their rented
house fall between 8-10 years (48%) and most of them normally default in their rent payments
(30%).
The tenants in addition, indecently use the property (13%) and exhibited uncooperative attitude
towards the Private developers (12%). Other problems encountered with the tenants are: Lack
of proper maintenance of the property (11%); Illegal transfer of room (10%); Conversion to
other use different from the original agreement (9%); Total abandon without prior notice to
the Private developers (6%); Erection of illegal structures in the Premises (5%); Vandalisation
of property (3%) and total deface of the structure (1%). The average period of stay by tenants
was okay compared with those staying for the period between 11-13 years (9%). It was
observed that the longer the Tenant stays in a rented apartment, the worse they become.
This is in terms of rent payment, indecent use of the house and other problems earliermentioned in the study. It is therefore, good for the Cooperative Society to let out apartment
to those who will be staying for short period like we have in the study: 2-4 years (16%) and 5-
7 years (26%).
The repairs and maintenance works are usually carried out on the property once in a year
(50%); followed by the repairs carried out occasionally or when there is only need for it (26%);
those that are carried out twice in a year (11%); Every two year (8%); no fixed time (4%); and
every three year (1%). The benefit of carrying out repair annually make it a popular option
over others, this is because, and it saves time and cost, compare to twice in a year.
I. CONCLUSION AND RECOMMENDATION
The Private sector (Cooperative Society) has no doubt made significant contributions to the
development of the Lagos State Housing Market despite those constraints that are serving as
challenges to its tangible efforts. There are a lot of opportunities in the Lagos State housing
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Market if the Private sector is ready to explore and make the best use of them. However, the
following recommendations are offered as a way of bringing about better and effective housing
delivery services to the people:
1. Government should give focus to the problem of poor infrastructural facilities. This is
very essential, for sustainable development to take place most especially in a developing
economy like Nigeria. The poor condition of electricity supply deserves urgent attention,
this is because apart from its domestic use, it is also very essential for its Industrial and
commercial purpose. There are many Small scale businesses and even large ones that
depend on electricity for survival. Therefore, the irregular supply of electricity makes
most of these organizations to operate below optimal level. Government should step up
effort at constructing good roads and provide regular water supply; these are also
necessary for better standard of living to be achieved by the people.
2. The Government policy on housing need to be changed for rapid development to take
place in the real property market. There should be no delay in getting title registration on
land and Government also need to encourage the Cooperative Societies in their bid to
provide more housing delivery services to the people, by making funds available to them.
3.
There is need for a fixed time to be determined for the repairs of the property, for it to be properly and well managed. The situation where repairs are carried out every three year
or occasionally may not be the best option for the proper maintenance of the property.
This definitely affects the quality of such real estate properties.
It can also be deduced from our survey carried out that cooperatives hardly collaborate with
financial inistitutions like the commercial banks and mortgage banks but only depend on the
contributions from its members which we feel delays loans to these members due to its
insufficient funds available. Therfore, cooperative societies should try and endulge certain
commercial banks and even mortage banks for loans to improve its finance and also agree on
certain loan terms.]
Also, in improving the housing development scheme, registered companies without
cooperative societies should endulge in these societies as it would affect positively the lives
of the middle and low income workers in that company.
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This group has however concluded that cooperative societies play a vital role in housing
development in Lagos state as the housing schemes developed and introduced by the Lagos
State govt is not sufficient enough or rather expensive for some certain class of people to meet,
therefore the societies should be supported and be given the necessary backing from the
government as they have tried in their own little way in providing the necessary fundings for
its members in making their dreams of owning land(s) and house(s) come true as the comfort
of every human on the surface of the earth is having good shelter.
J. REFERENCES
Hornsby A.S (1984) “Oxford Advanced Learner Dictionary” Oxford University Pr ess.
Ogunshakin and Olayiwola L. “The Collapse of Housing Policy in Nigeria Habitat”
International vol. 16, No.1992
http://lspdc.gov.ng
http://lagoshoms.gov.ng
Adeniyi E.O., “The Provision of Housing a Challenge to Urban Planning and
Development in Africa, Ibadan. NISER reprint series.
Adedeji, Y.M.D., 2004. Sustainable housing for low Income Industrial workers in Ikeja- Ilupeju Estate: Materials Initiative options. Paper Presented at the School of
Environmental Technology, Federal University of Technology, Akure. Aderamo, J.O.
and D.F. Ayobola, 2010. Spatial Structure of housing quality in Ilorin Nigeria. Research
Journal of Social Sciences. Res. J. Soc. Sci., 1(5): 12-21.African Independent
Television (AIT), 2007. News report on Nigerian housing Sector. Lagos, Nigeria. In:
Akeju, A.A. (Ed.), Challenges to Providing Affordable Housing in Nigeria. A Paper
Presented at the 2nd Africa International Conference on Housing Finance in Nigeria
held at Sheu Yaradua Center Abuja, 17-19 October.