It is becoming increasingly difficult for young people to get a step on the housing ladder. Available statistics on Nigeria’s housing deficit paint a grim picture; presents limitless opportunities.
Available data (for 2014) from the World Bank and the National Bureau of Statistics agree that Nigeria has an estimated housing deficit of over 17 million units.
With a population of almost 180 million, according to data from the United Nations, an annual population growth rate of 2.8 per cent (2015) and an annual urban population growth rate of 4.7 per cent, we need to stop talking and start building.
Nigeria’s abysmal ranking on the mortgage finance scale show that the several mortgage financing initiatives by successive governments in the country have failed. The Nigerian Bureau of Statistics (NBS) reported that Nigeria’s real estate market contributed only 6.82% to the real GDP down from 8.37%.
However, stakeholders agree that the country’s real estate growth is impressive; with PricewaterhouseCoopers (PwC) projecting, in its report – ‘Real Estate: Building the future of Africa’, – that Nigeria’s real estate investment will rise by about 49%, from USD9.16 billion to USD13.65 billion in 2016.
Investors are impressed with the outlook and have made significant inroads in tapping into the opportunities presented by the country’s housing deficit. Housing is a basic human need as a first important level of need similar to food and drink; therefore, it is at the center of wellbeing, People must have food to eat, water to drink and a place to call home before they can think about anything else.
To encourage more of this type of investors, Nigeria’s policy makers need to ensure that access to long-term finance is guaranteed to enable investors attract consumers from the upper end of the market that play in the prime real estate sector. The gaps in government-run infrastructure would also need to be plugged to guarantee efficient urban development.
The government would also need to promote favorable macroeconomic policies which will in turn encourage private sector investors to partner with her in providing low-cost mass housing. These policies must result in low interest rates, stable exchange rates and low inflation to encourage investors move into mass housing projects and low-income earners move from rented housing to their own affordable mortgage-enabled homes The Federal Mortgage Bank of Nigeria (FMBN) initiated the National Housing Fund (NHF) scheme to facilitate the provision of houses to Nigerians and bridge the housing deficit.
Many civil servants have benefited from the NHF scheme, although some are yet to benefit; people clamor for the review of the scheme. In order to broaden access to affordable housing and also solve the problem of prolonged processing time for mortgage loans, Platinum Mortgage Bank created a product called PLATINUM FASTTRACK MORTGAGE.
This product allows eligible Nigerians have access to their homes through mortgage within 48 hours of meeting the conditions. The procedure is simple. Any Nigerian above 21 years with a verifiable and regular source of income, a tax payer who meets all the condition of the loan which includes equity and repayment plan gets the key to a house of his choice in 48 hours. Platinum Mortgage Bank Ltd is a flagship in the banking and Mortgage sector; one of Nigeria’s leading primary Mortgage Institutions that met the CBN’s stipulated deadline for recapitalization and raised its authorized capital of five billion Naira.
Platinum Mortgage Bank Limited has been re-positioned to provide excellent home ownership products and has assisted numerous Nigerians in their quest for home ownership in various estates across Nigeria through the National housing fund as well as other mortgage loan windows of the bank. Powered by a visionary leadership, Platinum Mortgage Bank Limited is poised to provide your dream home through affordable mortgage backed housing schemes. We are implementing our corporate mission which is to improve the welfare of Nigerians through the provision of efficient stress-free and quality house delivery services at affordable cost.
Joseph is Head of Corporate Affairs, Platinum Mortgage Bank Limited, and is based in Abuja.