‘Why PPP is not working in housing sector’

The Executive Director, Center for Ethics and Sustainable Development, Dr. Olajumoke Akiode, has explained why the Public Private Partnership is not yielding the desired result in the housing sector.
Akiode spoke recently in Lagos at a workshop on Public Private Partnership for Affordable Housing Finance.
According to her, the PPP in housing provision started in Nigeria in the early 90s, after the 1991 National Housing Policy, which supported and promoted private sector participation in housing provision.
However, in practice these, she noted, have not always been achieved due to inadequate risk assessment and management as one of the major reasons for failures of PPP in housing.
Akiode said: “Like any other construction business, PPP arrangement is prone to risk. In fact, PPP projects are perceived to have more inherent risks due to the involvement of many stakeholders with varied interests in addition to the economic, political, social and cultural conditions where the projects are to be undertaken.
“This, therefore underscores the importance of risk management in PPP projects which have been adjudged to be riskier than the traditionally procured projects”, she added.
She, however, mentioned transparency, respect to the contracts’ specifications, value benefits to stakeholders, thorough risk analysis and stakeholder’s engagement as some of the factors that can guarantee a successful PPP.
Also speaking, the Country Director of Cromwell Professional Services International, Mr. Sola Enitan, said over time, housing in Nigeria’s urban centres has become a source of concern to every government as there always seem to be a shortfall.
This, he said, is especially true for Lagos as a state leading to several reforms and policy measures, which have addressed the housing needs to an extent.
He, however, listed lack of strong political will, economic limitation, ideological limitation lack of provision of construction materials, administration of construction process, nature of labour process, system financing as some of the limitations.

Leave a Reply