The 12th Abuja International Housing Show
Abuja International Conference Centre
July 16-19, 2018
The 12th Abuja International Housing Show took place from July 16-19, 2018 at the International Conference Centre, Abuja with the Theme: Driving Growth and Sustainability in Nigeria’s Housing and Mortgage Markets – Improving Structures and Policies for Impact. All the Stakeholders in the housing sector were represented at the events which featured Conference and Exhibition of building materials with international representations from Kenya, South Africa, UAE, Turkey, Belarus, Canada, UK and USA including Ghana Deputy Minister of Works and Housing and Members of Parliament.
At the end of the Show, the participants resolved as below:
1. The meeting commended the Organizers of Abuja International Housing Show, Fesadeb Communications Limited for having addressed every facet of the Housing and Mortgage Market, but implore all Stakeholders to join hands with the organizers to develop future events to make the Expo the housing hub of Africa, that would attract an influx of participants from all over the world.
2. The meeting identified various Challenges that had resulted in the increasing housing deficit and called for renewed strategies and collaboration from all stakeholders to drive the growth and sustainability of Housing/Mortgage Markets in Nigeria.
3. The meeting noted the adverse overwhelming effects of the economic recession on the housing sector which had hindered government’s efforts in the delivery of its statutory responsibilities; thus saddling Estate developers with the burden of providing primary and secondary infrastructures, with the resultant high cost of completing housing units.The workshop therefore called on Federal and State Governments to grant tax rebate to developers to assist them in reducing the increasing housing deficit in Nigeria.
4.The workshop commended the recent transformation of the Mortgage Market by the Federal Government with the creation of the Nigeria Mortgage Guarantee Company (NMGC) to offer Mortgage Guarantee and Insurance which would assist to provide enhancement for both the supply and demand aspect of the housing sector and implored the Government to fast-track the Take-off of the initiative which would be to the benefit of the economy.
5. The meeting decried the creation of slums and deplorable living conditions of the people in major cities and urban centres in most African Countries as a result of poverty. It called on African leaders to create Urban re-development and renewal of such slums and shanties to become new cities having modern infrastructural facilities, and to ensure full participation of the existing residents in the rehabilitation in order to enhance their living conditions
6. The meeting noted with dismay the inability of governments in recent times to repeat the provision of affordable mass housing of the 70s like the one executed by Jakande administration and called on all State Governments to adopt such policy of old to tackle current housing deficit in Nigeria.
7. The meeting noted that the informal sector constitutes about 83% of the working population, generating over USD178bn annually, contributes over 68% to the GDP and with over 80% of the labour force. Most people in this group however do not have access to the current formal mortgage facilities as a result of inability to gather requisites information to package them for mortgage. The meeting however noted that the Mortgage Banking Sub-Sector had developed Uniform Mortgage Underwriting Standards for the informal sector, so as to create access to the Mortgage Market. It therefore commended the current restructuring and reforms of the Mortgage Markets which led to the creation of Nigeria Mortgage Guarantee Company to complement the Uniform Underwriting Standards for the Informal Sector among others aimed at de-risking and deepening the market. The workshop therefore called on the Central Bank of Nigeria to add more value to its innovation and creativity to achieve attractive and robust mortgage market comparable to what obtained in developed economies, through effective measures to bring down the Interest Rate on Mortgages to Single Digit.
8. The meeting Advocated for a new strategy where housing should no longer be seen as alleviating Poverty, rather to be regarded as wealth creation which would be achievable through Sustainable Housing Development and Financing Systems, with new management innovations in funding such as access to Pension Funds together with other Dermative; Instruments in support of Housing Development such as, Lines of Credit, Equity, Partial Credit Guarantee (PCG) and Partial Risk Guarantee (PRG), among others
9. The meeting identified the absence of Foreclosure Law as one of the dis-incentives to attraction of long time finance to the Housing and Mortgage Market and advocated immediate adoption of the Model Mortgage Foreclosure Law in all the States of the Federation to emulate Lagos and Kaduna States, as well as support from the Judiciary towards adjudication of Mortgage Disputes.
10. The meeting Identified lack of effective data collection and collation as well as Market intelligence as one of the major factors that had adversely affected Financial Infrastructure in the Nigerian Housing Market. It then called for development of verifiable Data Base and Housing Market Information Portal currently being championed by the Nigeria Mortgage Refinance Company (NMRC) Plc. to enhance the evolution of Financial Infrastructure for Investment in the Sector.
11. The Meeting Noted that the global energy consumption is expected to increase by 37% (thirty seven percent) between Years 2015 and 2035 of which 96% (ninety six percent)would be attributable to Developing Nations; and therefore called for incorporation of Green Building Design Techniques, Technologies and Materials to reduce energy consumption and dependency on fossil fuels, with the negative environmental impact.
12. Resolved that Stakeholders should not relent in their efforts towards passage of the Mortgage and Housing related Draft Bills having effects on Affordable Housing that had been pending with the National Assembly for amendments since Year 2001:
Land Use Act 1978
National Housing Fund (NHF) Scheme Act 1992
Mortgage Banks Act 1989 (Subsumed in BOFIA)
Federal Mortgage Bank of Nigeria (FMBN) Act 1993
The Trustees Investment Act 1962
The Nigeria Social Insurance Trust Fund (NSITF) Act 1993
The Insurance Act 2002
The Investment and Securities Act 1999
The Federal Housing Authority (FHA) Act 1990
Foreclosure Law Bills – Residential Mortgage Act and Residential Mortgages (Incentives) Act.
13. The Meeting recognised the importance of Women in Nation Building, particularly with their passion for caring for others and resolved that providing Housing for Women is protecting our future. The workshop therefore called for empowerment of women in the Housing Sector, towards eradication of homelessness in Nigeria.