THE ROLE OF PRIVATE
PARTNERSHIP IN HOUSING FINANCE, DELIVERY AND MAINTENANCE IN NIGERIA
TO THE STUDY
The housing sector plays a more critical role in a
nation’s welfare than is always recognized, as it directly affects not only the
citizenry, but also the performance of other sectors of the economy. Adequate
housing provision has since the early 1970s consequently engaged the attention
of most countries, especially the developing nations for a number of reasons.
First, it is one of the three most important basic needs of mankind- the others
being food and clothing. Secondly, housing is a very important durable consumer
item, which impacts positively on productivity, as decent housing significantly
increases worker’s health and wellbeing, and consequently growth. Thirdly, it
is one of the indices for measuring the standard of living of people across
societies (Sanusi, 2003).
Propelled by the patriotic quest of addressing
Nigeria’s acute housing problem, the Federal Government came up with a National
Policy on Housing and Urban Development in 2002. The policy has since then
triggered milestone reforms in the nation’s housing industry aimed at
repositioning it for efficient and effective housing delivery and maintenance.
One of the means through which the policy is been achieved is on public-private
partnership concept. The thrust of the policy is to raise the home ownership
rate among Nigerians to a respectable level by moving the housing industry to
sustainably deliver mass, decent and affordable housing with the active
participation of the private sector-driven mortgage based housing delivery and
maintenance system (Oduwaye, 2004). The policy believes that this will
particularly address the housing problem of most Nigerian citizens.
The concept of private partnership in housing financing,
delivery and maintenance system is predicated on the pooling together of
resources from the various stakeholders, each party making inputs, thereby
minimizing wastage and maximizing results achieved. Ikekpeazu (2004) stressed
that the expediency of the increased adoption of the public-private partnership
for housing financing and delivery in the present socio-economic circumstances
of shortage of housing in Nigeria is now even more glaring than ever. With the
increasing demand of the population on the national economy and the
government’s propensity for enlarging the multi-sectorial allocations in terms
of finance, it is becoming obvious that government alone can no longer provide
adequate housing for all categories of her citizens particularly the low income
The organized private sector comprise of members of
the real estate developers association of Nigeria and some commercial banks
that have real estate departments. Average
citizens including the low-income earners do not easily have access to housing
finance because of their low wages. Nigeria is a country with high unequal
income distribution, a situation that restricts the reach of the vast majority
in the acquisitionof quality housing. This study examines the role of
public-private partnership in housing finance, delivery and maintenance in
The public-private partnership for
housing delivery under Nigeria’s current housing policy (Abdulsalam, 2008) confers
certain identifiable roles on both the public and the private sector. The roles
of the private sector in housing financing, delivery and maintenance with
particular reference to private partnership includes responsible for production
of physical houses, responsible for primary mortgage lending, required to
invest mortgage securities and responsible for the production and supply of
building materials, particularly local content.
OF THE PROBLEM
Housing finance constitutes one of the major pillars
of housing delivery and maintenance system. Indeed, without a well-organized
and efficient housing finance mechanism, the goal of a housing development and
maintenance policy will be largely unattainable. Housing finance has been
recognised as an important, almost indispensable factor in the housing delivery
and maintenance system. This is because only the very few in any nation can
afford to pay cash for a house or pay cash for a major renovation of the house.
Most other people must have to finance their house building and maintenance
through loans, personal savings, assistance from relatives or friends and
gifts. Introduction of public-private partnership in housing delivery and
maintenance is to enhance the productivity of the housing sector, increase
housing affordability and improve access to basic infrastructure and social
services. Ikekpeazu (2004) stressed that in order to attain the desired outcome
for private partnership, the perception of the housing sector as a vast arena
of social problems and a drain on the economy must change. Housing must be seen
as an important economic sector with crucial linkages to the overall economy of
a nation. The housing sector is a key component of the economy. It is typically
the largest single form of fixed capital investment, in most economics. Based
on these facts, the researcher seeks to examine the role of private partnership
in house finance, delivery and maintenance in Nigeria.
1.3 OBJECTIVES OF THE STUDY
following are the objectives of this study:
examine the role of private partnership in house finance,
delivery and maintenance in Nigeria.
2. To ascertain the level of investment in housing
delivery and maintenance in Nigeria.
3. To identify the problems of housing finance, delivery
and maintenance in Nigeria.
1.4 RESEARCH QUESTIONS
is the role of private partnership in house finance,
delivery and maintenance in Nigeria?
2. What is the level of investment in housing delivery
and maintenance in Nigeria?
3. What are the problems of housing finance, delivery and
maintenance in Nigeria?
Private partnership has not contributed to housing finance, delivery and
maintenance in Nigeria.
Private partnership has contributed to housing finance, delivery and
maintenance in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
following are the significance of this study:
results of this study will educate the general public on the role of public
private partnership and how it can be used as the instrument of development in
housing finance, delivery and maintenance.
findings will sensitize the stakeholders in building construction and real
estate management on the need for effective collaboration with the private
sector to ensure speedy financing and delivery of housing units all over the
country noting that private partnership has facilitated development in housing
delivery and maintenance in other advanced countries of the world.
research will also serve as a resource base to other scholars and researchers
interested in carrying out further research in this field subsequently, if
applied will go to an extent to provide new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
study on the role of private partnership in housing finance, delivery and
maintenance in Nigeria will cover the involvement of private sector in the
provision and maintenance of housing units with focus on the existing housing
structure and management in Nigeria.
LIMITATION OF STUDY
1. Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
2. Time constraint- The researcher will simultaneously engage in this study
with other academic work. This consequently will cut down on the time devoted
for the research work.
Abdulsalam, A. (2008): Public-Private Partnership in
Housing Finance at a seminar organised by the Nigerian Institute of Estate
Surveyors and Valuers (Ondo State Branch), held on the 13th of
November, 2008, at Owena-Nicon Luxury Hotels, Akure.
Ikekpeazu, F. (2004): New Trends in Low-cost Housing
delivery systems in Nigeria: An Overview of the public-private partnership
Housing Today, 1 (8), 30
Oduwaye, L. (2004): Problems and Prospects of Primary
Mortgage Institutions (PMIs) in Nigeria: Case of selected PMIs in Lagos.
Housing Today, 1 (8) 14-18.
Sanusi, J. O. (2003): Mortgage
Financing In Nigeria: Issues And Challenges, a paper presented at the 9th
John Wood Ekpenyong Memorial Lecture, organised by the Nigerian Institute of
Estate Surveyors and Valuers, January 29, 2003.