New House Industry: The Key to Job Creation and a Better Economy in Nigeria Part II
Every Nigerian government since its independence in 1960 has professed its support for affordable housing, but none has done anything tangible in this all-important industry. A large number of Nigerians continue to live in substandard houses. The conditions of kitchens and bathrooms are obvious indicators of household standards, just as one can judge restaurant food by the cleanliness of the bathroom.
In truth, the federal and state governments are ill-equipped to accomplish this feat. You can see that in the failed results of American and then Soviet housing “projects” of the 1950s to 1970s that looked great on paper and newly built, but instantly turned into ghettos and incubators for crime and other social problems. The mission should not be houses for everyone, it should be houses for all who can afford them on a lower to middle class income: big difference. Therefore, the private sector is the most suitable for the new housing program.
The establishment of grassroots homeowners associations, mechanical levy, and Indian laws are critical to the success of the market-driven, affordable housing program. I’m talking about cozy 1,200 sf, 3 bed, 2 bath, 2 car garage homes affordable with the monthly paychecks of teachers, average government and private sector workers, recent graduates, budding entrepreneurs, nurses, etc. These are the real (can) engines of growth that will create a sustainable Nigerian middle class, not the few who can afford 10 million Naira a gazillion Naira Taj Mahal-like structures with their high obscuring insecurity fences. If well-paying jobs and other career opportunities abound throughout Nigeria and people foster a strong work ethic to maintain them, there would be less need for these large self-made penitentiaries called homes.
When it comes to new homes and residential businesses, arguably no nation does it better than the United States. And the externalities are limitless! Nigerians can learn a lot from the US housing industry – both the good and the bad. Yes, there are failure lessons to learn and avoid too.
As one of the few Nigerians in the US new housing business, I fully appreciate the tasks ahead of the National Economic Management Team (NEMT) should they take this housing direction. If the NEMT would like to see first hand how business is conducted here in the United States in general and in Texas in particular, I would be happy to arrange a tour and training for the team and their staff in Austin, Texas. I can help NEMT meet some developers, builders, appraisers, sellers, collateral people, finance, realtors, etc. To be clear, the costs of the tour, training, and seminar will need to be directly assumed by the Team. However, there will be no cost for the role I play. My part will be purely pro bono.
In the same spirit of giving back without strings attached, I would be happy to travel to Nigeria with my money and provide a detailed report on how the new home business is being done in America and how to adopt and nurture it in Nigeria. Also, it would be beneficial to recruit some experienced Nigerian real estate agents and brokers in the US to lend their expertise to this cause. This will cost little in public sector funds as most of the costs and benefits will occur in the private sector.
The key is a public-private partnership that cites master-planned communities with walkable and bikeable neighborhoods, elementary, middle and high schools, restaurants, medical clinics, vehicle repair and grocery stores in close proximity to residents. Places of worship can be included if they commit to not creating noise pollution: outdoor speakers should not be allowed. God hears whispers.
Through bonds or bank funds, the Municipal Public Service Districts (MUD) would pay for the installation of infrastructure (such as roads, sewage, water, electricity, natural gas, cable). After inspections to ensure compliance with municipal codes, the municipalities reimburse the MUD, which in turn reimburses the bondholders or investors. The MUD or the municipality recovers its costs over a long period of time through taxes and fees. This is a simplistic explanation of how the program works in the United States; it gets more detailed and complicated than this in real life.
Nigeria’s real estate market is too dependent on one raw material: cement. That shouldn’t be! While cement is great for foundation, it has a fairly low R-value and the price fluctuation is immense and controlled by few hands. By the way, with all the limestone deposits in Nigeria, we should produce more cement to lower the price and export. We should use more wood, steel, drywall or sheetrock, hardiplank. Each material has its pros and cons. For example, increased use of wood would create more dangers from fire, termites, and deforestation. In addition, the use of wood would speed up the construction process and improve the use of local materials.
For the reader who thinks this program will not work in Nigeria, understand that Nigerians around the world are playing a positive role in the development of their host countries. If these battle-tested Nigerians can do that here in a foreign land, they can do it in Nigeria if they want to. Nigerians are perversive in every field in America. There is hardly any hospital in the United States where you will not find some Nigerians as nurses or doctors; the same is the case with universities where there are Nigerian students and/or professors. With all the negativity focused on a few Nigerian scammers, let’s not lose sight of the sea of Nigerians who are shining examples of the goodness of Nigeria and Nigerians. I don’t know about you; While I wouldn’t want to inherit anyone else’s sins, I am always eager to show pride in my Nigerian heritage. I say it loud and proud whenever I can: I am from Nigeria!
According to US Embassy Abuja economist Ajibola Akeju, there are huge opportunities in Nigeria’s housing sector waiting to be tapped. He also welcomes the public-private partnership approach. “The government alone cannot fill the housing gap,” Akeju explains. “To fill the gap, we would have to take advantage of the resources available in the private sector, while encouraging foreign investment. The government does not have companies that build houses. The government (federal government and subnational governments) should focus on providing a favorable investment”. weather, infrastructure, and mortgage insurance for first-time homebuyers and low-to-middle-income families. However, we must bear in mind that there are challenges in harnessing the enormous potential inherent in the Nigerian housing sector and invariably providing affordable housing in Nigeria.”
One reads about some physically fit educated Nigerians engaging in robbery, kidnapping, internet scams, drug dealing and taking unimaginable risks to flee Nigeria. These people blame unemployment and say that the living conditions in Nigeria are the cause of their criminal activities.
While individual greed, misplaced priorities, societal pressures, government mismanagement and a culture of poverty are contributing factors to Nigeria’s problems, making residential housing development a priority is a viable solution that can create 51 million sustainable, well-paying jobs and millions of affordable homes. for Nigeria and its immigrants. Would this happen overnight? No! Is this feasible over a ten year period if the Nigerians so decide? Definitely!!
