Magazine article Journal of Property Management

Nigeria's Housing Industry Growth to Spur Economic Diversity

Magazine article Journal of Property Management

Nigeria's Housing Industry Growth to Spur Economic Diversity

Article excerpt

Nigeria is a fast-growing, developing nation and has the highest population growth of all countries in Africa. It is also the largest economy on the continent and the 13th largest oil producing nation in the world. In the most recent census, Nigeria's population was a little over 170 million--approximately one fifth of the total population of Africa. Lagos, with a population of 21 million, is the largest city in Africa. According to the United Nations, the population of Nigeria will reach 440 million by 2050--and over 900 million by 2100--making it the third most populous country in the world.

HOUSING SHORTAGE IN NIGERIA

According to the Nigeria Federal Ministry of Lands, Housing and Urban Development (FMLHUD), "The housing sector has been a major contributor to the economies of many developed and developing nations, [...] contributing between 3070 percent of the GDP in developed countries like the USA, UK and Canada. Based on these notable contributions, the lands, housing and urban development subsectors are critical tools for transforming the economy of fast growing countries like Nigeria."

However, until now, the delivery of adequate and affordable housing in Nigeria has not met desired expectations, resulting in inadequate housing stock and a national deficit range of between 17-23 million housing units. In fact, in 2013, the entire housing sector contributed just eight percent to the GDP.

[ILLUSTRATION OMITTED]

The housing shortage is most apparent in urban areas, where construction hasn't kept up with the influx of new residents from rural Nigeria and abroad. Statistics given by the FMLHUD show the percentage of Nigerians living in major cities increased from 15 percent in 1950 to 50 percent in 2010--with a projection of 60 percent by 2025. The cost of standard housing in large cities has risen to exorbitant levels, and those who come from rural areas often settle in shanty towns at the edge of the city. These areas are dilapidated and lack basic amenities, resulting in unsafe and slum-like conditions for residents.

The scenario is equally bad in rural areas, where the problems are primarily that of inadequate infrastructural facilities like roads, sewage, water and power supply utilities, basic social amenities and unsafe housing that lacks structural soundness.

THE ROLE OF PROPERTY MANAGEMENT

As the housing sector continues to be a challenge, it is too early to establish proper standards of property management. That said, some professionals are making headway. Mostly, property management falls under the purview of the Nigerian Institution of Estate Surveyors and Valuers (NIESV). NIESV is a non-profit professional organization founded in 1969 by a group of qualified Chartered Surveyors--returnees and members of Royal Institute of Chartered Surveyors (RICS) based in London--to cater to the interest of the land economy in Nigeria.

In 1975, the government granted official status to the profession through the creation of the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). This board regulates the practice of estate surveying and the valuation profession. As stakeholders in housing, they jointly make recommendations to the government. The core competence areas of their practice are real estate brokerage, property and facilities management, valuation of interest in properties, valuation of plant and machinery, feasibility and viability appraisal of planned real estate developments and others. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.