The role of private partnership in housing finance, delivery and maintenance in nigeria

Project Abstract

The housing sector in Nigeria faces significant challenges in terms of finance, delivery, and maintenance. This study explores the role of private partnerships in addressing these challenges. Private partnerships have become increasingly important in the housing sector, as they offer innovative financing mechanisms, efficient project delivery, and effective maintenance strategies. The research employs a mixed-methods approach, combining quantitative analysis of housing finance data and qualitative interviews with key stakeholders in the housing sector. The findings suggest that private partnerships play a crucial role in increasing access to housing finance for low and middle-income earners in Nigeria. Through partnerships with financial institutions, private developers, and government agencies, innovative financing mechanisms such as mortgage guarantee schemes and housing microfinance have been introduced to expand access to housing finance. In terms of project delivery, private partnerships have been instrumental in streamlining the construction process and reducing the time and cost of housing projects. By leveraging the expertise and resources of private developers, housing projects are completed more efficiently, leading to increased housing stock and improved affordability. Furthermore, private partnerships have also focused on the maintenance aspect of housing, which is often neglected in the Nigerian housing sector. By establishing maintenance funds and engaging professional property management companies, private partnerships ensure that housing developments are well-maintained, contributing to the longevity and sustainability of the housing stock. Overall, the research highlights the positive impact of private partnerships in addressing the challenges of housing finance, delivery, and maintenance in Nigeria. By leveraging the strengths of the private sector and fostering collaboration between various stakeholders, private partnerships have the potential to transform the housing sector and improve access to quality housing for all segments of the population.

Project Overview

<p> </p><p><b>INTRODUCTION</b></p><p><b>1.1 &nbsp; BACKGROUND TO THE STUDY</b></p><p>The housing<br>sector plays a more critical role in a nation’s welfare than is always<br>recognized, as it directly affects not only the citizenry, but also the<br>performance of other sectors of the economy. Adequate housing provision has<br>since the early 1970s consequently engaged the attention of most countries,<br>especially the developing nations for a number of reasons. First, it is one of<br>the three most important basic needs of mankind- the others being food and<br>clothing. Secondly, housing is a very important durable consumer item, which<br>impacts positively on productivity, as decent housing significantly increases<br>worker’s health and wellbeing, and consequently growth. Thirdly, it is one of<br>the indices for measuring the standard of living of people across societies<br>(Sanusi, 2003).</p><p>Propelled by<br>the patriotic quest of addressing Nigeria’s acute housing problem, the Federal<br>Government came up with a National Policy on Housing and Urban Development in<br>2002. The policy has since then triggered milestone reforms in the nation’s<br>housing industry aimed at repositioning it for efficient and effective housing<br>delivery and maintenance. One of the means through which the policy is been<br>achieved is on public-private partnership concept. The thrust of the policy is<br>to raise the home ownership rate among Nigerians to a respectable level by<br>moving the housing industry to sustainably deliver mass, decent and affordable<br>housing with the active participation of the private sector-driven mortgage<br>based housing delivery and maintenance system (Oduwaye, 2004). The policy<br>believes that this will particularly address the housing problem of most<br>Nigerian citizens.</p><p>The concept of<br>private partnership in housing financing, delivery and maintenance system is<br>predicated on the pooling together of resources from the various stakeholders,<br>each party making inputs, thereby minimizing wastage and maximizing results<br>achieved. Ikekpeazu (2004) stressed that the expediency of the increased<br>adoption of the public-private partnership for housing financing and delivery<br>in the present socio-economic circumstances of shortage of housing in Nigeria<br>is now even more glaring than ever. With the increasing demand of the<br>population on the national economy and the government’s propensity for<br>enlarging the multi-sectorial allocations in terms of finance, it is becoming<br>obvious that government alone can no longer provide adequate housing for all<br>categories of her citizens particularly the low income earners.</p><p>The organized<br>private sector comprise of members of the real estate developers association of<br>Nigeria and some commercial banks that have real estate departments.Average citizens including the low-income earners do<br>not easily have access to housing finance because of their low wages. Nigeria<br>is a country with high unequal income distribution, a situation that restricts<br>the reach of the vast majority in the acquisitionof quality housing. This study<br>examines the role of public-private partnership in housing finance, delivery<br>and maintenance in Nigeria.</p><p>The public-private partnership for housing delivery under Nigeria’s<br>current housing policy (Abdulsalam, 2008) confers certain identifiable roles on<br>both the public and the private sector. The roles of the private sector in housing<br>financing, delivery and maintenance with particular reference to private<br>partnership includes responsible for production of physical houses, responsible<br>for primary mortgage lending, required to invest mortgage securities and responsible<br>for the production and supply of building materials, particularly local<br>content.</p><p><b>1.2 &nbsp; STATEMENT OF THE PROBLEM</b></p><p>Housing<br>finance constitutes one of the major pillars of housing delivery and<br>maintenance system. Indeed, without a well-organized and efficient housing<br>finance mechanism, the goal of a housing development and maintenance policy<br>will be largely unattainable. Housing finance has been recognised as an<br>important, almost indispensable factor in the housing delivery and maintenancesystem.<br>This is because only the very few in any nation can afford to pay cash for a<br>house or pay cash for a major renovation of the house. Most other people must<br>have to finance their house building and maintenance through loans, personal<br>savings, assistance from relatives or friends and gifts. Introduction of<br>public-private partnership in housing delivery and maintenance is to enhance<br>the productivity of the housing sector, increase housing affordability and<br>improve access to basic infrastructure and social services. Ikekpeazu (2004)<br>stressed that in order to attain the desired outcome for private partnership,<br>the perception of the housing sector as a vast arena of social problems and a<br>drain on the economy must change. Housing must be seen as an important economic<br>sector with crucial linkages to the overall economy of a nation. The housing<br>sector is a key component of the economy. It is typically the largest single<br>form of fixed capital investment, in most economics. Based on these facts, the<br>researcher seeks to examine the role of private partnership in house finance,<br>delivery and maintenance in Nigeria.</p><p><b>1.3 &nbsp; OBJECTIVES OF THE STUDY</b></p><p>The following are the objectives of this study:</p><p>1. To<br>examine the role of<br>private partnership in house finance, delivery and maintenance in Nigeria.</p><p>2. To ascertain the level of investment in housing<br>delivery and maintenance in Nigeria.</p><p>3. To identify the problems of housing finance, delivery<br>and maintenance in Nigeria.</p><p><b>1.4 &nbsp; RESEARCH QUESTIONS</b></p><p>1. What<br>is the role of private<br>partnership in house finance, delivery and maintenance in Nigeria?</p><p>2. What is the level of investment in housing delivery<br>and maintenance in Nigeria?</p><p>3. What are the problems of housing finance, delivery and<br>maintenance in Nigeria?</p><p><b>1.5 &nbsp; HYPOTHESIS</b></p><p>HO: Private partnership has not<br>contributed to housing finance, delivery and maintenance in Nigeria.</p><p>HA: Private partnership has contributed<br>to housing finance, delivery and maintenance in Nigeria.</p><p><b>1.6 &nbsp; SIGNIFICANCE OF THE STUDY</b></p><p>The following are the significance of this study:</p><p>1. The<br>results of this study will educate the general public on the role of public<br>private partnership and how it can be used as the instrument of development in<br>housing finance, delivery and maintenance.</p><p>2. The<br>findings will sensitize the stakeholders in building construction and real<br>estate management on the need for effective collaboration with the private<br>sector to ensure speedy financing and delivery of housing units all over the<br>country noting that private partnership has facilitated development in housing<br>delivery and maintenance in other advanced countries of the world.</p><p>3. This<br>research will also serve as a resource base to other scholars and researchers<br>interested in carrying out further research in this field subsequently, if<br>applied will go to an extent to provide new explanation to the topic.</p><p><b>1.7 &nbsp; SCOPE/LIMITATIONS OF THE STUDY</b></p><p>This study on the role of private partnership in<br>housing finance, delivery and maintenance in Nigeria will cover the involvement<br>of private sector in the provision and maintenance of housing units with focus<br>on the existing housing structure and management in Nigeria.</p><p><b>LIMITATION OF STUDY</b></p><p><b>1. &nbsp;</b><b>Financial<br>constraint</b>–<br>Insufficient fund tends to impede the efficiency of the researcher in sourcing<br>for the relevant materials, literature or information and in the process of<br>data collection (internet, questionnaire and interview).</p><p><b>2. &nbsp;</b><b>Time<br>constraint</b>– The<br>researcher will simultaneously engage in this study with other academic work.<br>This consequently will cut down on the time devoted for the research work.</p><p><b>REFERENCES</b></p><p>Abdulsalam, A. (2008): Public-Private Partnership in Housing Finance at<br>a seminar organised by the Nigerian Institute of Estate Surveyors and Valuers<br>(Ondo State Branch), held on the 13th of November, 2008, at Owena-Nicon<br>Luxury Hotels, Akure.</p><p>Ikekpeazu, F. (2004): New Trends in Low-cost Housing delivery systems in<br>Nigeria: An Overview of the public-private partnership approach<i>. Housing Today, 1 (8), 30 – 36.</i></p><p>Oduwaye, L. (2004): Problems and Prospects of Primary Mortgage<br>Institutions (PMIs) in Nigeria: Case of selected PMIs in Lagos. Housing Today,<br>1 (8) 14-18.</p><p>Sanusi, J. O. (2003): Mortgage Financing In Nigeria:<br>Issues And Challenges, a paper presented at the 9th John Wood<br>Ekpenyong Memorial Lecture, organised by the Nigerian Institute of Estate<br>Surveyors and Valuers, April 29, 2003.</p> <br><p></p>