Nigeria’s expenditure on housing ‘ll not exceed 33% yearly – Document

Nigerians will no longer spend more than 33 percent of their annual income on yearly rent and mortgage costs, in a bid to address housing affordability issues in the country, a 10-year National Housing Strategy Blueprint, has revealed.

The document also noted that the move would aid Nigerians in attending to other basic needs of the home, despite living in decent affordable houses.

According to the ten-year strategic document, the goal will be achieved by harmonising all existing housing initiatives, improving land administration and titling, lowering housing costs, and creating a housing assistance model to meet the needs of social housing.

“Nigerians deserve standard housing which is a right as espoused in the Universal Declaration of Human Rights and Inter Covenant on Economic, Social and Cultural Rights. To this end, Nigeria’s vision for housing is to ensure all Nigerians poor alike, occupy standard housing units. This implies that Nigerians will be able to buy or rent housing units without having to compromise on other important needs required for adequate living in society.

“Furthermore, these houses will conducive and comfortable for human occupation. This implies that no Nigerian should spend more than 33.00% of their annual disposable income on remortgage payments. This ensures that the individual or household can afford to maintain a decent standard of living in other housing areas”, the document read partly.

The document, however, stated that quality housing for all Nigerians must meet the minimum building and design standards as specified in the Nigerian Building Code and be in compliance with UN Habitat’s living conditions, adding that the housing supply should be tailored to meet the needs of Nigerians across income levels, age groups, and locations, resulting in better outcomes for all.

Recall that the Federal Government Friday launched the 10-year national housing strategy blueprint to ensure the availability of quality housing for all Nigerians.

The immediate past Minister of Works and Housing, Mr. Babatunde Raji Fashola, who launched the document, which was put together by the FMDQ Group PLC, said the blueprint’s implementation would address the financial challenges facing the housing sector.

Also speaking, the Chief Executive Officer of FMDQ Group, Mr. Bola Onadele Koko, who was represented by the group’s Senior Vice President, Mr. Emmanuel Etadahi, said with the document, the capital markets would serve as a key player in the development of Nigeria’s housing sector.

He said the document if properly implemented would unlock ‘dead’ capital estimated at US$300.00 billion for the Nigerian economy, which according to him is equivalent to c.60.00% of the country’s total Gross Domestic Product.