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Govt Plans To Boost Housing Stocks, Seeks Partnership With Professionals

 

There were indications last week that the Federal Government may have started to explore options for expanding the scope of partnership with private sector investors in the housing sector with a view to boosting access to shelter.

Under the renewed effort, government would be seeking to expand its ability to provide land free from encumbrances across the nation as an incentive to private developers to contribute more effectively to housing development. Minister of Environment, Housing and Urban Development, Mrs. Halima Tayo Alao, an architect, told professionals at the 10th annual conference of heads of quantity surveying department/ divisions in the federal, state ministries of environment, works, housing and parastatals in Lagos last week that the new efforts are already underway.

The public practitioners had gathered to discuss how housing in the public-private partnership approach (PPP) could help to drive development of housing in Nigeria. The minister noted that the wind blowing across the world was building strong ties between governments and the private sector, not just in housing provision, but virtually in all spheres of development. She said one of the programmes of President Umar Musa Yar'Adua's administration was to effect land reforms with a view to improving the nation's housing stock.

"Under the seven-point agenda of this administration, land reforms takes a prominent place in order to ensure increased provision of unencumbered lands throughout the federation for various developmental purposes," she said. The proposals will cover provision of land, mortgage facilities and building materials among others. Besides, the nation's mortgage institutions would need to be revived if the proposed initiative is to yield fruit, says Alao. "There is also the need to improve our mortgage culture and operations in Nigeria to enable investors in housing development to obtain loans at single digit interest rates for mass housing schemes".

Alao said that government was also obliged to support the quest for alternative building materials in order to increase local content in the construction industry in Nigeria, adding that affordability and access by majority to qualitative and durable building materials are thus priority areas for the Yar'Adua administration. She added that it is only when these and other measures were addressed that the cost of housing units would be within the reach of the people.

Head of quantity surveying and engineering services professionals in the employment of the Federal Government, Mr. Felix Ewah, who also hosted his colleagues at the event said, the conference was necessary to help inject workable ideas into the industry, which could in turn help to articulate major policies in the nation. "Essentially, this conference's resolutions are usually presented to the higher body - the National Council on Environment, Housing and Urban Development - where all matters brought before it are further extensively examined and scrutinised. Any decisions taken thereafter on the deliberations are subsequently forwarded to the Federal Executive Council (FEC) for ratification and national application, where necessary."

Ewah also urged his colleagues to redouble their efforts in all facets of housing development towards ensuring increased actual participation by organisations in the PPP approach, which he described as an alternative to previous systems that did not yield satisfactory results. General Manager, Policy and Strategy, Federal Mortgage Bank of Nigeria (FMBN), Abdusalam Y. Ahmed, told the conference that it was apparent that PPPs had become indispensable in contemporary times due to the inability of government and public institutions to unilaterally meet social needs due to reasons of paucity of funds or skills or to dilute project risks.

Ahmed, who spoke on "Financing Housing Development through the Public-Private Partnership Approach", held that under the PPP arrangements, the private sector drives the process while government's role was providing the enabling environment. He added that though government's role was limited, it is however, critical for the arrangement to work and get the desired results. To him, government must provide conducive legal and regulatory frameworks, efficient land administration processes, encourage and promote capable housing finance institutions as well as strive to put in place a stable macroeconomic to attract and retain private sector involvement.

Secretary, Partnership and Business Development Committee at the Federal Ministry of Environment, Housing and Urban Development, Mr. Oladunjoye Oyewunmi in his paper, " The Public-Private Partnership Approach to Housing Development: A General Appraisal, said: "It is my view that it is time for Nigeria's organised private sector to take a look at the global trend and partner with government in the critical areas of the economy".

He noted that the housing sector presented an excellent opportunity for PPP. The market, according to him, was large and could be made vibrant, adding that further delay might compound existing situations and make future problems more difficult. "Strong action through collaboration and partnerships can see us move to self-sustaining growth and development that will lead to a more prosperous and egalitarian society," he said.

Addressing the subject "The Building Code - The Quantity Surveyor and Public Private Partnership Programme", Mr. Tunde Osinubi was of the view that with cost overruns and increasing demand for increase in housing stock, a partnership could be formed with the government using its land holdings as equity while the private sector designs, builds, finances the development, sell the houses and share the profit at agreed proportions.

But, he warned of the need for transparency in the processes from selection of the firm to completion of sale of the houses by being guided by Part VII of the Public Procurement Act 2007 that was signed into law by President Umaru Musa Yar'Adua on 4th of June, 2007.

"Let me conclude by reminding us that the PPP contacts between private sector and government will and should be the subject of lengthy negotiations and detailed written agreements. The provisions in such contracts can do much to eliminate concern(s) real or perceived) about the impact of agreements", he said.
Director, Agriculture and Agro-Allied Dept, Raw Materials Research and Development Council, Dr. Ado K. Abdulahi, discussing the issue of "Local Sourcing of Building and Construction Raw Materials: The PPP Prospects," said the use of the PPPs in production and distribution of some goods and services was inevitable for attainment of sustainable development.

Abdulahi said there was need therefore to forge and promote strong, efficient, effective, sustainable, dynamic and vibrant PPPs, so that the private sector could produce and deliver some goods and services hitherto produced and delivered by the public sector.

According to him, using the PPP approach, opportunities abound in SMS development/projects, technologies, boosting the production of raw materials, linkages with donor agencies.

He noted that the PPP approach was a 'hot' topic at the moment closely linked to the international efforts to achieve the Millennium Development Goals (MDGs).

Source: Guardian