Obaseki Harps on Collaboration, Realistic Mortgages to Solve 20m Housing Deficit

… as Buhari commissions housing estate in Edo

The Edo State Governor, Godwin Obaseki, has harped on the need for realistic mortgages and closer collaboration between the Federal and State Governments to bridge the over 20 million housing deficit in the country.

Obaseki said this during the commissioning of a housing estate developed by the Federal Government under the National Housing Programme (Phase 1), along the Benin-Auchi Road by President Muhammadu Buhari, who was represented by the Minister of Health, Dr. Osagie Ehanire, on Thursday, April 14, 2022.

The Governor who expressed gratitude to the President for his commitment to the completion of the project which started many years ago, however advised that the “Federal Government does not need to spend its money on housing.” 

Obaseki told Buhari: “The money is in the banks, what you need to do is to encourage the financial system to produce mortgages for Nigerians to be able to own homes, and working with you, I believe we will make what is required available so that we can jointly and collaboratively build houses for Nigerians”.

He added: “As the Federal Bureau of Statistics has shown, we have over 20 million housing deficits in Nigeria, which means that many Nigerians are not living in proper shelter."

“The World Bank recommends the construction of at least a million homes annually to bridge this gap, if we build a million homes, it will take us 20 years from now to cover the deficit which we currently have, so you can imagine why so many people are living without roofs over their heads.”

“Due to limited resources and economic challenges, it has been difficult for us to achieve this goal. That is why it is important especially for the Federal Government that collaboration is very key.”

Obaseki added: “While we appreciate the Federal Government, we are saying that the road ahead is very long, the pace at which we are going cannot get us where we need to be, we need to change strategy. 68 units of housing after nine years will not solve that problem, we need to do more, and as a state we are ready to collaborate to achieve the desired goal."

“It is pertinent to underscore the need to develop other aspects of the housing industry, and one of them is mortgages, except we have a virile, realistic and affordable mortgage arrangement, we will not be able to develop housing at the rate we need to."

“It is only in Nigeria that people build houses with cash, everywhere else people borrow long term, 20, 25-year money and they pay little by little to own their homes. So without working with us to develop a strong mortgage industry we will not be able to cover the housing gap.”

He further said that through closer collaboration with stakeholders in the built industry his administration has been able to deliver the Emotan Housing Estate and other housing projects across the State."

Earlier, President Buhari said that beyond providing shelter for residents, “small businesses that support the housing industry have benefitted economically from the housing project.”

Other dignitaries at the commissioning ceremony were the representative of the Minister of Works and Housing, Babatunde Fashola (SAN), and some families of former Super Eagles players who are beneficiaries of the housing estate.

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