HIGHLIGHT OF DISCUSSIONS AT 12TH ABUJA INTERNATIONAL HOUSING SHOW
1.0 OPENING CEREMONY
1.1 OPENING REMARKS BY SURV. UGOCHUKWU CHIME, MEMBER, AIHS ORGANISING TEAM, 12TH ABUJA INTERNATIONAL HOUSING SHOW
AIHS is the place to be to enhance collaboration as effective collaboration efforts will ensure risks are reduced.To improve shelter provision, gross domestic product and create economic inclusion, stakeholders must stop working in silence.
Concrete real estate data is essential for growth of the sector to which partnerships with organisations like the National Bureau of Statistics and REDAN are in place to ensure realistic advantages are served the market.
The massive training in artisan and skill competency from the office of the Vice President and the CBN must continue to affect more people.
Chairman, AIHS organising committee noted that the convener, Festus Adebayo pursues excellence despite storms in making such a programme a continuous reality, thereby creating a difference with this laudable platform which has in turn provided massive success to for a wide range of construction businesses.
Mr. Festus has shown unfettered commitment to real estate development and has joined the likes of great political leaders such as Alex Ekwueme and Lateef Jakande who individualized and realised housing goals in their times.
Be inspired and fired for success at the 12th Abuja International Housing Show!
1.2 REMARK BY CHAIRMAN OF THE OCCASSION
SENATOR SANUSI DAGGASH, FORMER MINISTER OF PLANNING/CHAIRMAN, 12TH ABUJA INTERNATIONAL HOUSING SHOW
We have created institutions but have only been able to achieve interventions, which is but a speck in the desert.This is inclusive of present interventions by the government; however, it is unfortunate that the market has its own dynamics with low cost housing being swamped up by the middle class.
Lands in Abuja are so expensive, making it hard for people to provide their own housing in city centres where you don’t see major developments except with institutions such as the military and civil service agencies who are building for their retirees.
People need to leverage funds by simply walking into finance institutions but what is at play is that the private sector is still sourcing its own funds.
1.3 GOODWILL MESSAGES
1.31 BOSS MUSTAPHA, SECRETARY TO THE GOVERNMENT OF THE FEDERATION REPRESENTED BY THE PERMANENT SECRETARY
There is a demand that this gathering does not end up as another show of rhetoric as every stakeholder within the housing sector is in dire need of results.
The needful questions should be answered:
– Why are there so many empty houses in Abuja?
– Why are they not affordable?
– What does the government need to do?
– And what does the private sector need to do?
We need to design what works for us not necessarily works for others. This can be the use of alternate materials for housing development. It must not always be concrete.
As technology evolves, new innovations are coming up and we have to do a lot to harness it as the private sector.
UN Habitat has worked hard to see low cost housing and we need to pick their brains to understand what to do to harness mass housing.
1.32 ENGR. ADEKUNLE MOKUOLU, PRESIDENT, NSE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
Government is not focusing on engineering infrastructure which is one of the biggest challenges. It is not using local minds, inputs or plants but rather, personnel are imported. This is despite the fact that Nigerian content is visible in housing delivery.
Building lifespan minimum should be 200 years but most of our houses reach stages for reconstruction and renovation in less than 20 years. So NSE wants to engage government fully to create innovative templates for housing delivery.
We all need to hold the stake to address the challenges of housing in Nigeria.
1.33 BDR. KENNETH NDUKA, PRESIDENT, NIGERIAN INSTITUTE OF BUILDING AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
Good housing enhances economic growth and we have come to see the benefits of synergy, collaboration and professionalism at the 12th Abuja International Show.
1.34 MR. ROLAND ABONTA, PRESIDENT, NIGERIAN INSTITUTION OF ESTATE SURVEYORS AND VALUERS AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
There is a continuous adhoc approach to housing in Nigeria which should not be so.
Master plan for housing is important and challenges are largely related to data.
Politicking should be separated from housing if there must be improvements and estate surveyors should be called upon to drive the growth.
Professionals should come together to advice government.
It’s shocking to see figures on housing hoisted on us from foreign organisations. When did they do surveys to know these figures?
We should stop inconsistencies in housing and begin to plan appropriately.
1.35 PRESIDENT, NIGERIAN INSTITUTE OF ARCHITECTS, ARC. FESTUS NJOKU ADIBE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
Bringing our attention to what we may have neglected which is having challenges in meeting the needs of the middle and lower income design-wise as increasing space, increases cost.
– Use of inherent local materials to bring affordable housing to Nigeria.
– Working together will bring down housing deficit.
1.36 HEAD OF SERVICE, MRS WINIFRED OYO ITA REPRESENTED BY PERM SEC., MRS. DIDI AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
The choice of theme for this conference is apt addressing major challenges.
Improving welfare and wellbeing of Federal Civil Servants is part of the infrastructure plan.
Our goal is to enhance the value of civil servants by increasing access to affordable housing with engagements like FISH. Provision of mortgage facility with long term payment plan is critical.
Partnership with the FISH programme will present stakeholders the opportunity to partner so that Federal staff can own homes.
1.37 MADAM AMAL PEPPLE, FMR. MINISTER OF LANDS AND HOUSING
Housing creates both primary and secondary employment and like the agriculture sector, players need to blow the housing trumpet to increase investment participation within our sector.
1.4 ADDRESS BY GUESTS OF HONOUR:
1.41 MINISTER OF THE FCT, HON. MOHAMMED BELLO REPRESENTED BY DIRECTOR, AMMC, TPL. UMAR SHUAIB
Housing is a critical component in a nation and one of life’s most basic needs.Housing is a major subject of discussion among nations; primary to the instituting of global summits such as the Rio 1992 Habitat Summit and the Johannesburg World Summit in the 2000s amongst others.
The Nigerian government formulated the National Housing Policy in 1999 which was amended in 2004 with a more budget friendly approach and limiting the role of the public sector in order to bring in the private sector to provide affordable housing – acknowledging them as a key partner to housing delivery.
49% of the FCT area was allocated for housing development and since the late 90s, FCTA provided housing to the mass influx of people, which did not continue in the 2000s.
The Federal government initiated the Federal Housing Scheme, helping the FCTA provide infrastructure and land to private infrastructure development by private developers providing ancillary development.
Private developments were given letters of intent to access funds from mortgage institutions who in turn deferred charges to allow these private investors use their money to build these houses.
The FCTA considers the AIHS as its own, and the show has remained the pride of the FCT, bringing people from all across Nigeria and beyond.
Participants are implored to put heads together to generate sustainable ideas to the housing challenge in Nigeria.
1.42 DEPUTY MINISTER FOR HOUSING, GHANA, HON. FREDA PREMPEH AT THE 12TH ABUJA INTERNATIONAL HOUSING SHOW
Adequate housing is a fundamental right of all citizens.
We should explore the use of new technology in the use of building.We should be more innovative and creative to bring down the cost of buildings. In Ghana, container houses are raised within two days.
The Ghana ministry of works and housing welcomes initiatives of this kind (AIHS).Industrialisation and value addition should be brought into our discussions.We need to facilitate the growth of modern cities that puts together commerce and affordability.
In Ghana, our goal is to achieve the MDGs but know that our main constraint to housing delivery is the high cost. However, Nigerians living in Ghana make housing more expensive for 63% of the people.We call upon Nigerians to come and invest in housing and not just buy.
We had a poor land system but we have evolved into electronic lands by registering land titles within two days.
The government is acquiring land masses across the country to create mass housing projects and works and are working to ensure that even with this, housing projects are demandable by the people it is been called to serve.
As a lower-middle income country, the government understands the need for public Private partnership to drive growth with 40,000 and 100,000 units presently in place with two private partners.
Investment incentives include abolishing 5% housing tax while absence of long term mortgage finance is a key issue among a host of other innovative strategies.
Selfishness, corruption and self interest must be put aside to move the industry forward.
1.5 ADDRESS BY SPECIAL GUESTS OF HONOUR
1.51 HIS EXCELLENCY, GOVERNOR OF NIGER STATE, ABUBAKAR SANI BELLO REPRESENTED BY MR. MIKAEL EL-AMIN AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
The achievements of the government of Niger state includes creating a housing policy for the state, utilising data driven management of resources and the launch of the first UN Habitat pilot smart city in Suleja, amongst many other innovations. At the 12th Abuja International Housing show, the government is determined to extract the wisdom of all stakeholders in order to move the state forward with regards to housing.
1.52 SPECIAL GUEST OF HONOUR AND THE EXECUTIVE GOVERNOR OF EDO STATE, MR. GODWIN OBASEKI REPRESENTED BY MR. FESTUS OSAGIE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO
The attestation to the calibre of dignitaries put in place by the show instils the fact that its long standing continuance has not been for fun. However, it is time to turn policies to implementable actions.Nigeria can grow its housing sector into a major contributor in the growth of its GDP.
Since the 70s, Nigeria has not been able to deliver 200,000 homes. Only 15-30% of Nigerians own their houses while others are in one form of lease arrangement or the other.We need interrogation of the delivery system, addressing the issue of long term housing system.In Edo state, only 2 estates occupying 200 houses have been delivered in the past 16 years and the clear challenges include policy and man-made issues.
Therefore, for the provision of adequate housing for everyone in the state needs the hands of all stakeholders to be on deck.We set out to cover a strategic dialogue as our goal with six pillars in place, with the topmost being infrastructure.
Innovations such as the creation of a metropolitan master plan for the four main cities in Edo state, Edo State geography development system to automate housing and housing ownership and moving housing to the state owned housing investment and development company, Edo State Property Agency which acts as a developer estate agent dealing with private, commercial and industrial estates within the cities.
Its priority is to deliver low income housing in the state, delivering almost 2000 housing units which have been sold to locals. It has a goal to establish the greater Benin metropolis area removing pressure from the city centres.
Joint venture with Mixta to deliver different affordable types to residents (mixta funds the estate, EDPA provides the land and both parties will sell the houses to Nigerians and the Diaspora).
Diasporas are also called into JV partnerships with Jara to develop Jara Mall (EDPA provides land, JDCL provides technical expertise). This partnership was done to remove political risk ensuring success regardless of who is in power.
It has been a huge learning curve for the government of Edo state and aggressive participation is called upon all to come and invest in Edo state.
1.6 AWARDS PRESENTATION
1.61 MR. MIKAEL EL-AMIN RECEIVING THE SMART CITY AWARD ON BEHALF OF HIS EXCELLENCY, GOVERNOR OF NIGER STATE, ABUBAKAR SANI BELLO
1.62 LIFETIME HOUSING ACHIEVEMENT AWARD TO MADAM PEPPLE
1.7 ADDRESS BY CHIEF HOST
KEYNOTE SPEECH AND OPENING OF 12TH ABUJA INTERNATIONAL HOUSING SHOW: HONOURABLE MINISTER FOR POWER, WORKS AND HOUSING BABATUNDE RAJI FASHOLA REPRESENTED BY HONOURABLE MINISTER OF STATE FOR POWER, WORKS AND HOUSING, HON. SULEIMAN ZARMAN HASSAN
AIHS has been painstakingly nurtured for 12 years to key into continuous housing development which is a core mandate of this administration.
The Federal ministry for power, works and housing is a partner with AIHS to ensure expanded housing affordability and accessibility. It is our goal to initiate a new brand of Nigerian housing and there is need for multilevel structures.
Industrialising the building industry by ensuring housing components are created locally is our goal. This includes creating jobs for artisans to ensure employment and we know that mass housing is the game changer the economy needs now.
1.71 AWARD PRESENTATION: HONOURABLE MINISTER FOR POWER, WORKS AND HOUSING BABATUNDE RAJI FASHOLA PRESENTED WITH AWARD AND REPRESENTED BY HONOURABLE MINISTER OF STATE FOR POWER, WORKS AND HOUSING, HON. ZARMA HASSAN
Guest of Honour, Deputy Minister for Housing, Ghana, Hon. Freda Prempeh presents prestigious award to Babatunde Raji Fashola as the best performing Minister, Power, Works and Housing received by the Minister of state.
2.0 CEOs FORUM
THEME: FOSTERING COLLABORATION FOR EFFECTIVE HOUSING DELIVERY
2.1 BRIEF MESSAGE
JAN ZUIDHOF, WORLD CEO, SOLIGNUM, PARTNERS OF THE 12TH ABUJA INTERNATIONAL HOUSING SHOW COMMUNICATING HIS SPEECH AND VISION FOR THE SECTOR THROUGH THE BRAND
The international standard of the AIHS shows the attention given to housing in Nigeria.These efforts cannot be overlooked as professionals need to take full protection of building and wood. Solignum offers unequalled protection for building and is certified by NAFDAC and also covered by the royal seal.The company has had significant success in African countries such as Cameroun, Ghana, Malawi, SA etc. and looks forward to have continued success with stakeholders within the industry.
UNVEILING TRENDS IN HOUSING FINANCE AND MORTGAGE MARKET REGULATIONS
LEAD SPEAKER: XING QUAN ZHANG, CONSULTANT, UN HABITAT, UNITED NATIONS
FINANCING AND DEVELOPING AFFORDABLE HOUSING IN AFRICA: WHAT WE HAVE LEARNT AND HOW WE CAN DO BETTER.
- Population growth is faster than capacities in Africa.
- It took 14 years to grow 1 billion population in the 80s and 12 years to grow 1 billion population in the 90s.
- The fastest population growth is in Africa.
- Lifespans are longer than previously.
- There is lack of adequate resource to power cities and build more housing units.
This means ‘Population’ growth is one reason there is pressure on resources impacting housing.
GDP share of capital also affects growth as seen in the world wealth distribution where the share is getting smaller for African countries.Majority of Africans cannot afford formal finance as the continent is in a low income bracket.Share of households which can afford the cheapest housing units are average.
Finance Availability in Africa
- Development of mortgage finance
– In emerging market economies, mortgage debt is 9.4% incomparison with advanced countries at 61.4%.
– Penetration of mortgage is at 0.4% in Nigeria against South Africa of 30%.
2. Inflation rate can tremendously affect the building sector
– When inflation is high, contractors build less, leading to less supply of housing
– Low income earners cannot qualify for mortgage loans
3. Total mortgage lending
Mortgage finance company is not a determining factor to boost mortgage growth as in the case of Tanzania.
What are the solutions?
The questions are; who do you build for and where do you build?
- Bringing down cost is bringing down the interest rate but with high inflation rate. So, you can’t bring it down or you crash the system. The real solution is to bring down the inflation rate.
- Land: housing a system to build out land in England; they put land bank to release landwhen it is in highest demand.
- Talent: Nigeria must produce talent e.g. Land Bank and AfDB CEOs are Nigerians.
- Efficiency: This is key to delivering housing at record time.
FEMI ADEWOLE, MANAGING DIRECTOR, SHELTER AFRIQUE
Regulations must increasingly play a role as markets gravitate towards segments where returns are higher – developers gravitate towards higher market ends.
Occasionally, you have to constrain policy to were you want it to go. There is a big obligation to use regulation to direct market forces. Planning system is the most significant tool in directing market forces.
– Zoning systems: No permission can be granted for housing development if they do not meet certain regulatory demands e.g. in Abidjan
– Regulating Occupancy and use: Impose empty property tax on developers in order to divert market activities.
KUNLE FALETI, FMR. MD, DIAMOND MORTGAGE BANK
Collaborations between housing professionals is greater than ever and more demand from the informal sector will drive housing finance.
Upper middle market issaturated with little room for growth.
Banks come up with solutions to housing finance;
– Offtaker finance has always been a challenge
– Mortgage finance will bridge the gap
DAVID GARDNER, CAHF
Housing is a sector of fundamentals such as land, finance and infrastructure.
10% of Nigerians can afford a $20,000 house; 30% of Nigerians can afford a $10,000; 50% of Nigerians can afford a $7,000 house.
The housing finance value chain includes;
– financing for land/land banking
– Takeout finance etc.
We are all focused on large scale but we can look at the following options;
– Massive small i.e. what does each household, community put into housing
– Information systems: we cannot change what we cannot measure
HAKEEM OGUNNIRAN, UPDC, MD
- Cost – We look at ultimate cost: the critical cost of the value chain is key.
- Construction Finance – Tap into long term financing from the capital market.
- Innovative finance – Looking beyond traditional means of financing in order to control costs and end price.
- Right environment: We see the difficulty in buying land, getting approvals, and payments etc. Separate windows need to be created to enable the right environment.
Objectives of the land use act is beyond charges and consent in collecting money.
ARC. AHMED DANGIWA, MD, FEDERAL MORTGAGE BANK OF NIGERIA
Solutions to foster effective housing development include;
– Easy access to land
– Increase of income
– Recapitalisation of the housing institutions for proper positioning
– Protection of public interest
– Protection of the market
– Regulation: Procedures to reduce high transaction costs
2.4 PARTICIPANTS’ COMMENTS
- Prof. Gbenga Nubi – All governments should have a master plan
- Mrs. Olajumoke Fashanu – Acquiring land and releasing equity in existing houses is key.
- Moderator – Mortgage Infrastructure deficit: The modern model andforeclosure law can be adopted
- Gardner: We need to find little projects and move forward.
3.0 PANEL 2
ALLEVIATING POVERTY THROUGH SUSTAINABLE HOUSING DEVELOPMENT AND FINANCE SYSTEM
LEAD SPEAKER: MR. EMMANUEL AKINWUMI, PRINCIPAL PRIVATE SECTOR SPECIALIST, AFRICAN DEVELOPMENT BANK (AfDB)
- AfDB and its poverty reduction mandate
- Financial sector Development Strategy, 2014 – 2019
- Strategy and organisational structure
- Instrument and scope of activities
- Possible impact of housing finance system
AfDBs 5 point Agenda
- Light up and power Africa
- Feed Africa
- Integrate Africa: Less than 10% intra-trade in Africa
- Industrialise Africa
- Improve quality of life for the people of Africa
- Increase access to underserved women and youth
- Broadening and deepening Africa’s finance systems
- Financial inclusion and intermediation division
- Capital markets division
- Industrial and trade development division
- Lines of credit
- Equity e.g. Shelter Afrique (18.07%), Pan African Housing Fund
- Guarantee: Partial Credit Guarantee, Partial Risk Guarantee
- Technical Assistance/Grants
- Knowledge work generation and dissemination (MFWA – Making Finance Work for Africa). Student hostel should be part of affordable housing innovation
- Money for affordable housing is hiding in capital market
- New capital market product development
- Development of an affordable housing finance sector
- Support governments and municipalities
- Poor training and HR building
It is bad to base housing on market rates and I find it hypocritical for the West to talk of housing and not include subsidy to enable the poor access housing.
Positive impact of Housing Development
- Economy stimulation and improvement of economic growth
- Inclusive access to finance, lower interest and longer tenure
- Job creation of value chain
- Increase in housing investment
- Consistent growth in MSMEs and consumer wealth
3.1 PANELIST SESSION
Moderator: Mr. Kayode Omotosho, Executive Secretary/CEO, MBAN
– It is true that our housing GDP contribution is poor
– Alleviating poverty in Nigeria is demeaning; we should talk about wealth creation
– Collaboration is a goal in MBAN
– Copying Canada shamelessly resulted in NMRC
Rev. Surv. Ugochukwu Chime, President, REDAN
There has been a paradigm shift in home ownership approach as we see new entrepreneurs source for funding. They seek inclusion in order to derive strong exit strategy for their investments. There are not up to 60,000 mortgages when mortgage banks need a minimum of 10,000 units to break even. So the policy limits placed on them are bad for business.
– Inadequate legal and regulatory framework accounts for 29%
-Lack of political will accounts for 24%
– No financing available to developers on finance side
Abubakar Suleiman, MD, Sterling Bank
Land approved is on the high side. They need to subsidise the land as 20sqm can cost N20,000.00to register with government and developers are not father Christmas and will pass the bulk to buyers.
SONNIE AYERE, Chairman, MFWL
We underestimate a lot of the work being done in the sector. The journey has been long but there is progress. Looking at the 3 national mortgage finance companies, we need to come to celebrate what we have achieved and not act like nothing is being done. We don’t have to beat ourselves up year in, year out.
We hope to showcase an ecosystem of supply and demand in the 13th show realising that the money for housing is so scarce that we have to go out to look for that funding.
PROF MUSTAPHA ZUBAIRU; HEAD, NIGER STATE GOVERNMENT SMART CITY DEVELOPMET
We need to address these issues the way they should be addressed as all professionals look at their own challenges and leave others behind. The bulk of poor people live in slums but by our definition as experts, we consider their form of housing as substandard.
Experts in USA signed a moral agreement not necessarily a legal one to meet their 11 million housing goals. So as experts, we must talk collaboratively.
Prof Gbenga Nubi, Director, Centre for Housing Studies, University of Lagos.
More than half of all dwellers in sub-SaharanAfrica live in slums. All mindset should not go to newly built. Slum land can be expensive land and there truly is no slum land.
Tokenism is no comprehensive effort. Liverpool talks about housing regeneration.
– Increase in minimum wage was 5-10% in the last 10 years
– No way to crash cost except you mass produce as an industry
– A total repackaging is needed i.e. how do we help people redevelop their housing?Jakande told us that Nigerians are not looking for housing but for flats
3.2 PARTICIPANTS’ COMMENTS
Moderator: We need to restrategise
Mrs. Olajumoke Fashanu: Rent to own is the way to go
Emmanuel Amosu, CIBN, USA Branch: AfDB should not talk poverty alleviation but eradication
Raymond, Kaduna State Mortgage and Foreclosure Authority: Welcomes everyone to invest in Kaduna state as they are one of the first states to adopt a foreclosure policy.
Prof Nubi: Resettlement of settlers to one quarter will leave 75% of real time, high priced real estate.
4.0 DAY 2 THEME: HOUSING FINANCE & MORTGAGE SOLUTIONS
NHFP Session at the Abuja International Housing Show
Session Moderator: Adenike Fasanya-Osilaja
4.1 PANEL ONE
TOPIC: BENEFITS OF A ROBUST AND EFFECTIVE MORTGAGE GUARANTEE PROGRAM FOR DRIVING INCREASED ACCESS TO LONG TERM, LOW COST HOUSING FINANCE AND HOME OWNERSHIP IN NIGERIA
LEAD SPEAKER: TOKUNBO MARTINS, DIRECTOR, OFISD, CBN
NHFP is a public private partnership with World Bank.
A guarantee mortgage is onewhich an identified third party takes responsibility for the loan if the borrower defaults.
Mortgage guarantee products to the market include documentation, underwriting, mortgage dispute resolutions etc.
Benefits of Mortgage Guarantee to Borrower
- It has the capacity to encourage investor funds
- Borrowers can become more qualified and knowledgeable
Benefits of Mortgage Guarantee to Lender
- Expansion to new market resulting in deepening of the market
- Reduction in capital adequacy requirements
- Enhances access to financing portfolio, risk rating, securitisation
Benefits of Mortgage Guarantee to Government
- It becomes more affordable to citizens
- More people can meet their needs on their own
- It creates better social inclusion
- It enables the achievement of political and economic promises by politicians
The NHFP is tasked with the responsibility to tackle a myriad of problems burdened on the industry. It therefore partners with the industry in the development of policies designed to create innovative programmes.
One of such programmes is the NMCG; a proposed pilot to test the viability of mortgage products in the Nigerian market. CBN hopes to present the business plan for NMGC by the end of the year.
Some constraints have included:
- Land use
- Partnering with NMRC to spearhead drafting of model mortgage foreclosure bill
- Mortgage adjudication process
- Standardization processes
- Adopted uniform underwriting standard
- NMRC has launched MMS platform; a national data information management system
- Cultural biases towards mortgage loans include all types of religious and traditional stigmatizations
- Lack of knowledge on mortgage
- Creation of the MY OWN HOME SCHEME campaign
All industry players are called upon to invest in education and advertising.
4.2 PANELISTS SESSION:
Questions & Answer Sessions
- Ghana Deputy Minister for Housing: Why are we still struggling despite what we have in place?
Sonnie Ayere: It is a list of solutions we are implementing over time. We are raising more capital and are making slow and steady progress. Various states in Nigeria are about passing the mortgage foreclosure law and some have already passed it.
Adeniyi Akinlusi: Creating awareness includes social media, print and TV adverts to address different strata in the society. There is a 30% debt to income ratio for the formal sector at present; the informal/non-income sector and the diaspora are being looked at with intending different debt ratio for each segment. With a mortgage guarantee, we become more lenient in dealing with consumers.
Adedeji Adesemoye: Young people are encouraged to plan to own homes as they plan to buy cars
- How do you control giving opportunity to others who need to access housing?
Tokunbo Martins: Many people in the informal sector can afford mortgages, it’s just that they don’t have organised information as the people in the formal sector.
Adeniyi Akinlusi: Younger people are targeted to become homeowners as they are more entrepreneurial than the older generation. Between the ages of 18 – 35, they engage in all kinds of jobs; fashion, music, entertainment etc., just to make a living.
- Nigerians do not believe in mortgage, how do we make this real to them?
Adeniyi Akinlusi: Campaigns to a younger and informal sector must be sustained. This market remains a growth reserve for the industry. Trade unions and cooperatives can make impact since they have influence on the markets
- Are there states raising funds for participating institutions to enable them build and sell to civil servants?
Sonnie Ayere: Government is responding adequately on the supply end and they are expecting demand.
4.3 PANEL TWO
TOPIC: MANAGING UNINTENDED NEGATIVE CONSEQUENCES OF THE 1978 LAND USE ACT ON THE NIGERIAN HOUSING SECTOR
SPEAKER: MR. ADEDEJI ADESEMOYE, HEAD PAT/DD OFISD, CBN
A mortgage market in any country is developed by a reasonably functioning primary mortgage. We must have mortgage and title registrations, insurance regulations, guarantees from Banks; we must have information that provides sales prices, mortgage portfolio experience and pricing model.
For primary mortgage market, we must have lending, loan services, condominium law, strong economic policies, covenant political support etc.
The Nigeria Housing Finance Programme (NHFP) was started in 2014 and closes 2018.
To maximise the impact of the market, the government is coming up with solutions such as smart subsidy to ensure it meets social demand.
The land use act of 1978 is the most critical constraint in mortgaging.
Challenges of mortgaging include;
- Multiplicity of laws in different states
- Exorbitant costs in the perfection of mortgages
- Delays in judicial driven rights such as foreclosure: collaboration with the Nigerian judiciary to lend support to mortgage reform and to review the old laws in order to pass new ones.
The model mortgage and foreclosure law has been passed by the Lagos and Kaduna state governments in 2010 and 2017 respectively with the cost of mortgages in Lagos reducing from 5% to 3%.
Impact of the Model Law
- It enables Kaduna state attract $250 million investment from the World Bank
- It provides legal underpinning for the Affordable Home Scheme opportunity for at least 200,000 persons to own homes through mortgage for the first time
- Potential to reduce model guarantee premium
- Using administrative process to ease the burden of obtaining government consent.
Benefits of the Model Mortgage Law
- Increases the ease of doing business
- Leads to growth in housing stock increasing access to finance for citizens and taxable income
Prospects and Potential of the Model Mortgage Law includes the Federal government of Nigeria and NHFP working to invigorate the national housing sub sector
4.4 PANELIST SESSION:
Questions and Answers
- Do owners have automatic right to renew their land if it expires?
Suleyman: Managing the unintended consequences of the land use act is where we presently are; it does not mean you do not own the land when it expires, you get first right to renew after 99 years.
4.5 SESSION 3
UNIFORM UNDERWRITING STANDARDS FOR INFORMAL SECTOR
TOPIC: ENABLING ROBUST MORTGAGE MARKET & FINANCIAL INCLUSION THROUGH UNDERWRITING STANDARDS
MRS. AGNES TOKUNBO MARTINS, DIRECTOR, OFISD, CBN
4.6 PANELIST SESSION
Arc Ahmed Dangiwa: NDIC has assisted FMBN to reduce debt.
Adeniyi Akinlusi: Working closely with CBN, we did something different by ensuring mortgage banking remains profitable and sustainable. To do this, we deepen the market which is risky. Other states didn’t have sustainable income like Lagos and Port Harcourt, so de-risking was key by creating standard underwriting processes. Looking at the peculiarities of the local market, even people in the formal sector may not be able to access it. Fixing interest rate, issue of foreclosure etc., has put us in the right direction.
David Gardner: Owners of financial institutions can review how they do business.New scoring mechanisms such as assessments on specific professions rather than those income brackets are needful.Construction loan is critical to growth of the sector; we should think of property for business i.e. using our homes as offices and also think of our properties as business as well. We should think of housing from a finance system approach.
Sam Odia: Practical deployment of underwriting standards has seen Millard Fuller work with low standard and minimum income wage earners.
4.7 PARTICIPANT QUESTIONS:
Princess Folaji: How can you bring the Diaspora in the mortgage picture despite these challenges?
Kunle Samuel: What is NMRC doing in terms of underwriting standardization?
Charles Inyangete: We need less of transactional thinking i.e. bringing informal and formal sectors into the ecosystem. We need to think beyond what others think is practical as a driver of the economy. This is a transformational mindset that will lead us to addressing the challenges in the housing sector.
Adeniyi Adelusi: Underwriting standardization for the Diaspora is available.
Umaru Ibrahim, MD, NDIC: Diaspora window was being created except for some regulatory issues with CBN. FSS2020/CBN/NMRC & African Diaspora are signing a partnership to enable investment in housing.
Kehinde Ogundimu: Uniform Diaspora standard underwriting is presently taking place.
Adeniyi Adelusi: With housing, the dots can be connected. Access to mortgage is as easy as tax registration.
Kunle Faleti: Nigeria should not go to mortgages for the Diaspora now until there is a proper underwriting system in place locally.
Arc Aduku: I believe between Millard Fuller, FMBN, CAHF, we can move into the interiors.
4.8 SESSION 4
SHOWCASE OF THE NMRC’S HOUSNG MARKET INFORMATION PORTAL
4.9 TOPIC: THE CASE FOR FORMWORK TECHNOLOGY
SPEAKER: MR. JIDE ODUSOLU, CEO, OPIC
- We can defer payments as a government entity but private investors can’t do this
- We use aluminium formwork, making us deliver cheaply
- Density helps to reduce cost ; the use of tech in construction e.g. form tech
- Make mortgage for 1st time home below N15 million, a tax deductible expense.
- Provide concessions/rebates to developers for provision of primary infrastructure.
- Provide concessions on fiscal terms for affordable homes development and critical supply items.
- Looking at our training programmes, we do not have a workforce; we have no decent work delivery, no good vocational system etc. it is only in Nigeria where employees resume work without adequate training.
5.0 DAY 3 THEME: WOMEN IN HOUSING SECTOR SESSION
WOMEN IN HOUSING SECTOR INITIATIVE
5.1 WELCOME REMARK
MRS. ADENIKE FASANYA-OSILAJA, FOUNDER, WIHSI
Women in Housing Sector Initiative (WIHSI) serves as a platform for training of women and other marginalized people in the society. Women have been subjected to one form of discrimination or the other. They are subjected to loss housing as a result of various catastrophes that happen in their lives and this initiative is here to help women do better.
Men are highly appreciated for coming out to the women in housing intiative. Three men were approached with this idea and all of them said they had been waiting for something like this and here we are. Without Mr. Festus Adebayo, the Abuja International Housing Show Convener, this wouldn’t have been possible. So we are grateful for all the men here today.
5.2 KEYNOTE ADDRESS
TOPIC: EMPOWERING WOMEN, EMPOWERING OUR FUTURE
KEYNOTE SPEAKER: MALLAM IBRAHIM ALIYU
I was influenced by a woman, having a grandmother who was passionate about business and education within the Bwari community. She ensured I was educated. So this was my influence in believing in the influence of women. Women can multitask, are competitive, good marketers, and managers of resources. Women make sure that the most important things get done. So when it comes to women in housing, I believe women will do well. From my experience, in terms of planning and project management, women do a great job in this sector.
I personally don’t understand why it should be women in housing because I don’t see gender. Women are going into all kinds of male dominated fields including engineering. As CEO, Urban Shelter, Saadiyat Aliyu who is my daughter has done well. From a N10 billion debt when she came in we have recorded revenue of over N10 billion and reduced our debt to N2 billion, which is very current.
With the prime minister of the UK and Germany being women, I look towards a woman becoming the President soon, hopefully in my lifetime. I am sure you will understand why I am saying this. Women need to be paid as much as men in the industry and men need to support women with this goal.
At Urban Shelter, 32% of staff are women and 40% of women are in operations, delivering projects and 40% of people on our board are women. Mckinsey says companies with women on board have a tendency to make over 20% higher. 28% of houses at Urban Shelter are bought by women and 100% of those bought are influenced by women.
It is therefore important for women to be educated in skills that enable them build, sell and buy houses. Other women should be called upon to add their knowledge to WIHSI such as the initiator of FISH and Mrs. Alozie.
5.2 PANEL SESSION ONE
Chinwe Ajene Sagna: More gender diversity can translate to higher productivity, innovation and good management.
5.3 TOPIC: WHY WOMEN IN HOUSING?
SPEAKER: Adenike Osilaja
There a lot of evictions happening to women especially those who lose husbands to death or divorce. On divorce, women are worse hit being sent to the streets. The children and even sometimes their mothers translate into touts and prostitutes.
WIHSI is an NGO formed to create a platform for women. Our initiative is Housing Women-Housing Our Future; we are operating at different education levels to bring women into housing and financial inclusion.
‘Operation Own Your Home’ is an initiative to enable women own their own homes. Any woman who achieves home ownership through subsidy, cash or mortgages can be registered under this scheme to enable her earn credits and offset her payments.
Our benefits include; financial training and certifications, financial education as regards the benefits of having a new home, entrepreneurial education and how to use the home to make money.
We are partnering with Trust Bond Mortgages whose founder has been our backbone to help women own homes. We are calling on companies, NGOs etc, to help them identify, vet and provide them responsibilities to enable them help women own homes.
The National Assembly is working to deliver 6,000 houses and we are asking for 500 units. Urban Shelter is on course to supporting our initiatives and other companies can come on board to give e.g. 20% discounts to women for maybe 5-10% houses. So, today is the birth of collaboration.
5.3 PANELISTS SESSION
Chinwe Ajene-Sagna: Given the speech we’ve heard on empowering women, empowering our future, what comes to mind?
Uzor: Listening to the keynote speech, women inclusion in decision making especially in housing is key. In my business, 60% of my board of director are women. Bringing in women, introduces a quality mix.
Chinwe Ajene-Sagna: What steps do women take to be empowered in housing ownerships?
Yemisi Odunobi: It is as simple as asking as many questions as possible. As an engineer and project manager, it is really about using human resources to achieve your goals, by making people work for you instead of doing the job yourself. Finding a mentor in your field and one not in your field; you need people who understand technical competence and understand how to navigate and these mentors don’t have to be women.
Chinwe Ajene-Sagna: How do you believe women can be empowered especially in housing?
Nike Osilaja: Women pull together resources of the household; knowledge is important so the girl-child should be empowered with the information they need to own their own homes.
5.4 PANEL SESSION TWO
TOPIC: HEALTH AND WELL-BEING: CRITICAL TIPS FOR EMPOWERING WOMEN IN PROFESSIONAL ENTERPRISE
SPEAKER: PROFESSOR ANUMAH
We seek knowledge to remain in a balanced state at all times. We need to screen for lifestyle disease.
Factors responsible for diseases include;
- Environment factors: Diseases influenced by surroundings
- Non-modifiable factors: age, gender, race, hereditary factors
- Modifiable factors: what we do to ourselves; how we eat, live, it is basically abuse to the body.
To retain health, we are expected to burn whatsoever we take in daily.
5.4 PANELISTS SESSION
MODERATOR: SA’ADDIYA ALIYU
- What are the major factors hindering women from home ownerships?
- What are the culture norms and traditions holding women back from owning houses?
- How do we solve these problems and what are your contributions?
Sam Odia: We are a Christian organisation; we do not discriminate against any faith or gender. We understand women challenges in terms of evictions and work hard on women empowerment. This includes Beatrice our first woman mason. The major issues are cultural and traditional as women don’t feel they should step into a man’s role.
Adeniyi Adelusi: Economically empowering women is essential and income is an issue in terms of home ownership. So we need to support women more as they dominate the informal sector and cannot really access institutional funds. So a uniform mortgage underwriting standard for the informal sector will empower women. We encourage men to get homes and titles in the names of their wives; we support rent to own and even expensive rentals and lease agreements.
Kola Ashiru Balogun, MD, Mixta Africa: Site where we have women project managers, we have very few issues. We have women completing hoses in two weeks. Initiatives like the WIHSI help change the narrative and Mixta Africa will fully support the initiatives.
Adenike Osilaja: We are asking for CSR to support WIHSI from corporate in the housing sector.
5.5 PANEL SESSION THREE
TOPIC: WOMEN ISSUES IN PROFESSIONAL ADVANCEMENT – “HOW I MADE IT”
MODERATOR: MRS. UZO OSHOGWE, CEO, AFRILAND PROPERTIES
Uzo Oshogwe: What challenges did you experience and how did you overcome it?
Mercy Iortyer: (Past President, Women Surveyors, first female president of the Institute of Quantity Surveyors)There are definite challenges working in a male dominated sector; poor networking is also prevalent which can be misconstrued as flirtatious; balancing work with family life. However, to remain a leader in the profession, working hard and believing in you is essential to success. You must initiate and see what you can do to build your community.
Saadiyat Aliyu: There is the self-sabotage that we do especially when your background is not even in housing. Look for how you can mitigate this inner voice. It is necessary to learn as much as possible.
Uzo: Do you still feel there is a glass ceiling and how have you broken it?
Urban Planner: I did a certification to be relevant in procurement. It is never too late to make changes as I made this change at 50. I left the UK to apply for a Federal Government job and have worked here for 33 years. Be the best where you find yourself.
Uzo: Leadership must promote women empowerment and what did you do to promote women empowerment?
Chi Akporji: I worked across the world for the World Bank and with that have been in women empowerment for years; helping women know how to raise financing for their business. I came back to Nigeria through Okonjo Iweala, the coordinating minister of the economy. We enabled women become pothole fillers in Kaduna. We got loans to birth NMRC and the Nigeria National Finance Programme. It is very lonely at the top as a female Director. As NMRCs social responsibility, we train IDPs on basic artisanal skills such as bricklaying, tiling etc., and we involve young girls and women through this.
5.6 SESSION 2
STAKEHOLDERS’ SESSION: KNOTTY ISSUES IN HOUSING DELIVERY
LEAD SPEAKER: SAM ODIA
We started at building houses for people with zero profit and interest for low income people. The money was grant from Millard and the Fuller centre, charging people for only the cost of the house. We are now building in a more sustainable way with loans and a small profit margin. 77% of Nigerians earn less than N40, 000 a month. Affordability is the state of being cheap enough for people to buy and affordability is determined by the market.
In home costing, there are 5 elements; cost of building, labour, infrastructure (lights, roads, water etc.), and land cost, overhead planning cost etc. the size of the building determines the cost. We need to manage our houses as size and complexity of design determines how expensive.
Cost breakdown – building materials: 77%, infrastructure: 23%, land:13%, overheads: 10%, compliance: 4%, profit margin: 24%, preliminaries (mobilization/demobilisation): 4%.
At Millard fuller foundation, 3 months cycle is the standard time for home delivery.
5.7 PANELIST SESSION
MODERATOR: COLLINS NWOSU
Rev Ugochukwu Chime, President, REDAN:Inability to grasp what the problems are over the years; 30 years ago, the housing industry was uncharted. People seek developers to outsource to because of time constraint. Secondly, they need money to fund their houses and thirdly, they want the right laws to protect them. These laws were tilted towards the off-takers which led to a lot of failures.
In housing development, the core issues were getting titles which some states easily give now but it was very difficult 10 years ago especially in the FCT. Spiritual and cultural issues also held us back from developing in some areas.
Prof Gbenga Nubi: The Role of Government in Housing;
Jakande built 16 estates with 40,000 housing units in 4 years and 3,000 units in Abuja as Minister of Housing. He was able to sell at N2,500 to N4,000. He achieved this because it is the responsibility of any responsible government to provide land and infrastructure. He created bulk purchasing companies from appliances, by so doing crashing the prices. He used the same 1978 Land use act to achieve this. It is not in the land use act that certain amounts should be charged for C of O.
Mr. Toyin Eniola, Association of Housing Corporations of Nigeria:In the beginning, government was the singular provider of housing but politicking and corruption ran down the process in 1979. Governments began to inflate prices by bringing their own suppliers and contractors. They formed parallel agencies from the states’ housing agency in order to benefit themselves. As an association, we want to engage in public private partnership to raise finance and deliver housing.
David Gardner, CAHF: Scaling development is essential and households will provide their own housing.How do we galvanise housing economy and the economy of housing? We need to unblock value chains to increase the flow of finance. My focus is with larger targets that can scale financing. As a LG, Cape Town has gone ahead to raise a green bond of 1Billion Rand used to grow the housing economy in the city.
A company like Turf works with the inner cities to develop properties. Through the use of mortgage financing for landlords; we can use landlord base financing to grow housing in Nigeria. We need to find information to target the housing sector, so when housing are built they are done with the target market in mind.
Kayode Omotosho: Tenure was a knotty issue and we had been on a long stride of 20-25 years which we have tackled.Interest and foreclosure were other issues. As investors,developers deploy capital and there needs to be a redefinition of the law. So we are tackling foreclosure and will keep Nigerians informed on the progress. We are targeting interest rate in the way that it will not trigger negative phenomenon in the market.
Dr. Chi Akporji:The issue of attracting finance into the sector is being addressed. On the demand side, there has been a mismatch with the supply. Enabling all stakeholders to work together, the NMRC affords a platform across the value chain to operate seamlessly by reducing costs to borrowers. Interest rates after the world war were as high as 32% but by creating an environment for investment to thrive, housing has become a barometer to measure the economy of the financial world. This showed as the housing crash led to the 2008 global economic meltdown.
5.8 BRAND MESSAGE
FRED JOHNSTON, CEO, KANSAI PLASCON ON THE INNOVATIVE BENEFITS OF ITS PAINT PRODUCT
Plascon launched to provide quality paints to the Nigerian markets. By working on the quality of the plaster, we have been able to design paint which is durable and can last for over four years without fading. We partnered with the Lagos state government to paint the Falomo bridge pillars with the faces of the Chibok girls and we provide training to the painters for this service.
5.9 PARTICIPANT QUESTIONS
Question: How can you support PCNI to deliver appropriate housing? David Garviner, Special Adviser (Tech), Presidential Committee in North East Initiative
Answers: Government can play its role like the government of Taraba state that paid 50% of housing to civil servants and secured mortgage from Federal Mortgage Bank of Nigeria to help them establish success rate. There should be incentives in housing like in agriculture, whose producers are not allowed to pay VAT.
Question: Do we do feasibility studies in the category of housing? Olukole Oladeinde (Nigeria Police Cooperative Society)
Answers: We should move into the element of selling and building instead of building and selling.,
Question: How soon do we have single digit interest rates for mortgages?
Answer: We should allow interest rate reduction take its course.
5.10 TOPIC: ROLE OF NIB IN HOUSING
LEAD SPEAKER: AZEEZ OLAWALE, STERLING BANK
Non-interest Bank: Funds we collect must be purposeful; we can’t just collect any fund. Our criteria for collecting money to support the housing sector include;
- Cheapness of the money
- Patience of the funders
- Tailored to construction
Sterling Bank can come in as a direct investor or create debt for the developer and charge 19-20%, with a profit of between 1-2%.
For Sterling Bank alternative finance, our target is on life preservation, intellectual development etc; so sourcing for really cheap funds is essential and we have access to both local and international funds. We take developer proposals to panels and IDB for approval and provide mortgage as member of NMRC.
5.11 SESSION 3
THEME: INCORPORATING GREEN AND SUSTAINABLE MODELS INTO NIGERIA’S HOUSING AND MORTGAGE MARKETS
PANELIST SESSION 3
Dennis Papa Odenyi Quansah, EDGE, Green Building Lead, Nigeria/Ghana
Building green does not necessarily mean cost reduction; these buildings can actually be sold at higher costs. Architecture plan and how you design play an important role in building green. Developers need to be intentional as some costs may not need to be incurred.
Prof. Danladi Matawal, NBBRI, represented by Head of Building, Engr. Nwanabe Ocean
With green solutions, we can strategically choose how to supply them. Being green means using sustainable and affordable resources; with sustainability being impact on the long term effect. In NBBRI, we utilise sustainable earth processes such as the use of Bamboo to build houses as the potential of this element has been underestimated. We develop and use laminated bamboo panels as doors, walls, roofing panels etc.
Ene Marcharm, Head, Nigeria Energy Support Programme
In terms of green building, we must ensure we have lighting and cooling in an efficient way as the building sector utilizes electricity than any other sector at 42%.
DATED THIS 19TH DAY OF JULY 2018
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