New Home Industry: The Key to Job Creation and a Better Economy in Nigeria Part II

Every Nigerian government since independence in 1960 has professed support for affordable housing, but none has done anything tangible in this important industry. Large numbers of Nigerians continue to live in substandard housing. The conditions of kitchens and bathrooms are clear indicators of household standards, just as one can judge restaurant food by the cleanliness of the bathroom.

Truth be told, the federal and state governments are ill-equipped to accomplish this feat. You can see that in the failed results of American and then Soviet Union housing “projects” of the 1950s-1970s that looked great on paper and newly built, but instantly became ghettos and incubators of crime and other social problems. The mission should not be houses for everyone, it should be houses for everyone who can afford them on a lower to middle class income: big difference. Therefore, the private sector is the most suitable for the new housing program.

The establishment of grassroots homeowners associations, the mechanical lien, and indigenous laws are critical to the success of the market-driven, affordable housing program. I’m talking about cozy 1,200 square foot, 3 bed, 2 bath, 2 car garage homes affordable with the monthly paychecks of teachers, average government and private sector workers, recent graduates, budding entrepreneurs, nurses, etc. These are the real (can) engines of growth that will create a sustainable Nigerian middle class, not the few who can afford 10 million naira to gazillion Naira Taj Mahal-like structures with their high obscuring insecurity fences. If good paying jobs and other career opportunities abound throughout Nigeria and people foster a strong work ethic to keep them, there would be less need for these large self-made penitentiaries called homes.

When it comes to new homes and residential businesses, arguably no nation does it better than the United States. And the externalities are limitless! Nigerians can learn a lot from the US housing industry: both the good and the bad. Yes, there are lessons from failure to learn and avoid as well.

As one of the few Nigerians in the new housing business in America, I fully appreciate the tasks ahead for the National Economic Management Team (NEMT) should they take this housing direction. If the NEMT wants to see firsthand how business is done here in the United States in general and in Texas in particular, I’d be happy to arrange a tour and training for the team and their staff in Austin, Texas. I can help NEMT meet some developers, builders, appraisers, salespeople, warranty people, finance, realtors, etc. To be clear, the Team will have to bear directly the costs of the tour, the training and the seminar. However, there will be no cost for the role I play. My part will be purely pro bono.

In the same spirit of giving back with no strings attached, I would be happy to travel to Nigeria with my money and provide a detailed report on how the new home business is being run in America and how it is being embraced and fostered in Nigeria. Also, it would be beneficial to recruit some experienced Nigerian real estate agents and brokers in the United States to lend their expertise to this cause. This will cost little in public sector funds as most of the costs and benefits will occur in the private sector.

The key is public-private partnership where master-planned communities with walkable and bikeable neighborhoods, elementary, middle and high schools, restaurants, medical clinics, auto repair and grocery stores are cited in close proximity to residents. Places of worship can be included if they agree not to create noise pollution: no outside speakers should be allowed. God hears whispers.

Through bonds or bank funds, the Municipal Public Service Districts (MUDs) would pay for the installation of infrastructure (such as roads, sewage, water, electricity, natural gas, cable). After inspections to ensure compliance with municipal codes, municipalities reimburse the MUD, which in turn reimburses bondholders or investors. The MUD or municipality recoups its costs over a long period of time through taxes and fees. This is a simplistic explanation of how the program works in the United States; it gets more detailed and complicated than this in real life.

Nigeria’s real estate market is too dependent on one commodity: cement. That shouldn’t be! While cement is great for foundation, it has a pretty low R-value and the price fluctuation is huge and controlled by few hands. By the way, with all the limestone deposits in Nigeria, we should produce more cement to lower the price and export. We should use more wood, steel, drywall or plasterboard, hardiplank. Each material has its pros and cons. For example, increased use of wood would create more dangers from fires, termites, and deforestation. In addition, the use of wood would speed up the construction process and improve the use of local materials.

For the reader who thinks that this program will not work in Nigeria, please understand that Nigerians all over the world are playing a positive role in the development of their host countries. If these battle-tested Nigerians can do that here in a foreign land, they can do it in Nigeria if they so choose. Nigerians are wicked in all fields in America. There is hardly any hospital in America where you don’t find some Nigerians as nurses or doctors; the same goes for universities where there are Nigerian students and/or professors. With all the negativity focused on a few Nigerian scammers, let’s not lose sight of the sea of ​​Nigerians who are shining examples of the goodness of Nigeria and Nigerians. I don’t know about you; While I would not want to inherit anyone else’s sins, I am always eager to show pride in my Nigerian heritage. I say it loud and proud whenever I can: I am from Nigeria!

According to the economist at the US Embassy in Abuja, Ajibola Akeju, there are huge opportunities in Nigeria’s housing sector waiting to be seized. He also welcomes the public-private partnership approach. “The government alone cannot fill the housing gap,” explains Akeju. “To fill the gap, we would have to tap into the resources available in the private sector, while also encouraging foreign investment. The government does not have companies that build houses. The government (federal and sub-national governments) should focus on providing favorable investment “. weather, infrastructure, and mortgage insurance for first-time homebuyers and low- to middle-income families. However, we must bear in mind that there are challenges in harnessing the enormous potential inherent in Nigeria’s housing sector and consistently providing affordable housing in Nigeria.”

One reads about some able-bodied educated Nigerians who engage in robbery, kidnapping, internet scams, drug dealing and take unimaginable risks to flee Nigeria. These people blame unemployment and say that the living conditions in Nigeria are the cause of their criminal activities.

While individual greed, misplaced priorities, social pressures, government mismanagement and a culture of poverty are all contributing factors to Nigeria’s problems, making residential housing development a priority is a viable solution that can create 51 million sustainable, well-paying jobs and millions of affordable homes. for Nigeria and its immigrants. Would this happen overnight? Nope! Is this feasible over a ten year period if Nigerians so decide? Definitely!!