Housing is one of the best indicators of a person’s standard of living and his place in the society. Like food and clothing, housing ranks among the three basic human needs. Its availability is very crucial to the welfare of every human.
However, in Nigeria, access to affordable housing has largely remained and unfulfilled dream to the vast majority most especially, the middle and lower class of the society.
Nigeria is the most populated nation in Africa. It is also one of the most rapidly urbanized countries in Africa and over 48% of population in Nigeria lives in the urban areas, covering less than 10% of the habitable land areas.
The Nigeria government through the Ministry of Finance in collaboration with Nigeria Sovereign Investment Authority, Nigeria Mortgage Refinance Company, National Pension Commission and the State Government, are in the stages of commissioning affordable housing for the populace to address the housing deficit in the country and to make the dream of owning a house a reality. These houses will be delivered in a ‘ready to occupy’ condition, with essential services such as water and power connected, to ease the essential needs of the families moving in.
A wise proverbs says “Fools build houses, wise men buy them”, these houses will be priced from N2.5 million, extending up to N18 million, with a payment plan of up to 20 year tenor at 9.99% interest rate with first buyer deposit of as low as 10%.
This is the first of its kind in over 20 years, and it creates the opportunity for low income earners to be home owners and not just tenants. While a bank loan will give you over 14% interest rate and little to no time to pay back, this opportunity gives a 9.99% interest rate and a 20 years payment option, making it easy for the average Nigerian to become home owners.
Affordability analysis shows that low income earners can afford housing units at N2 million. Building a house in Nigeria is expensive, so the government should be commended for its efforts at creating affordable housing and making every Nigerians dream of owning a home a reality.
Written by Dibi Wells.
