National Trends in Housing-Production Practices Volume 4: Nigeria

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2 Table of Contents Foreword I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector o 1. Colonial period o 2. Post-independence period ( ) o 3. Second civilian (Shagari) administration period ( ) o 4. Second military interregnum ( ) B. The current shelter policy and its links with the overall economy C. Objectives of the National Housing Policy o o o o o 1. Organization for shelter delivery 2. Federal government agencies 3. State governments 4. Local governments 5. Private-sector participation D. Legal and regulatory framework for shelter delivery E. Mobilization and allocation of financial resources o o o 1. Financing for infrastructure 2. Financing for housing 3. Targeted subsidies F. Shelter production and improvement o o o 1. Land management 2. Infrastructure 3. Building materials and technology G. Scope and scale of the shelter problem o o o 1. Housing stock 2. Housing needs 3. Housing demand Page 2

3 II. Housing supply at the national level A. Actors in the shelter-delivery process o o o o 1. Government and public-sector agencies 2. Private sector 3. NGOs, CBOs and cooperatives 4. Households B. Housing finance o o o o o o o o 1. Household savings for housing 2. Housing loan systems 3. Housing finance in rural areas 4. Loans granted by staff housing boards 5. Creating a new housing-finance system 6. Incentives for investment in housing 7. Subsidies in the housing sector 8. Affordability and cost recovery C. Housing production o o o o o 1. Traditional housing schemes 2. Sites-and-services schemes 3. Settlement-upgrading schemes 4. The World Bank-assisted Urban Development-Programme (NSUDP) 5. Informal-sector activities III. Lagos Metropolitan Area (LMA) A. Scope and scale of the shelter problem o o 1. Housing stock 2. Housing needs B. Actors in the shelter-delivery process o 1. Government and public-sector agencies a. The Federal Government b. The state government c. The local governments Page 3

4 o o 2. Private-sector actors 3. Housing-finance institutions C. Housing production o o 1. Traditional housing 2. Sites-and-services scheme IV. Adoption of enabling shelter strategies and alleviation of the housing problem in Nigeria A. Obstacles to an effective housing supply B. Shelter programmes and activities and the low- income groups C. Conclusions and recommendations Bibliography Page 4

5 List of Tables Table 1. Exchange rate US$ - Naira Table 2. Planned federal expenditure on housing programmes during the 4th national development plan ( ) Table 3. Table 4. Table 5. Programme outline for private estate developers, Lagos Shelter quality in southern states of Nigeria Infrastructure Development Fund: participants, roes and financing plan Table 6. Provisional population, Nigeria, by state (1991) Table 7. Estimated household population, Nigeria (1991) Table 8. Percentage distribution of households, by dwelling types, Nigeria ( ) Table 9. Estimated housing stock, by dwelling types, Nigeria (1991) Table 10. Housing tenure, Nigeria ( ) (percentage) Table 11. Estimated housing needs Nigeria ( ) Table 12. Household income groups, Nigeria Table 13. Income groups, Nigeria (1992) Table 14. Housing prices by types, Owerri, Nigeria (1992) Table 15. Household incomes and dwelling type options, Nigeria (1992) Table 16. Housing demand, by type of dwelling units (1992) Table 17. Sources of housing finance in selected states of Nigeria (per cent) (1980) Table 18. FMBN savings instruments ( ) Table 19. FMBN mortgage loan applications funds Table 20. Types of lending body preferred, northern states Table 21. Housing construction by the Federal Government Staff Housing Board Table 22. Housing production by FHA Table 23. Allocation of plots under the National Sites and Services Scheme ( ) Table 24. Housing stock, LMA, by type Table 25. Housing needs, LMA Table 26. Housing demand, LMA Table 27. Housing supply, LMA Table 28. LSDPC low-cost housing production in LMA ( ) Page 5

6 Table 29. LSDPC medium-income housing production in LMA ( ) Table 30. LSDPC upper-medium income housing production in LMA ( ) Table 31. Housing projects executed by HFP Engineering (Nig) Ltd Table 32. The National Sites-and-Services Scheme (number plots allocated) Page 6

7 Table 1. Exchange rate US$ - Naira Year / (average) April 1992 after deregulation) 10 January April 1993 (official) 25 April 1993 ("parallel" market) May 1993 ("parallel" market) Source: Achunine, N/$ Page 7

8 Table 2. Planned federal expenditure on housing programmes during the 4th national development plan ( ) Programme Content Federal housing units Providing 2000 housing units per state 500 Development of sites-and-services Providing 5000 plots of serviced land per state 100 Staff Housing Scheme Granting housing loans to civil servants (N 40,000 per person) 175 Federal Government quarters in states Construction of suitable quarters 200 Industrial complex layouts Provision of plans and infrastructure at industrial sites 170 Construction of housing units Development of 143,000 housing units per state in 19 states 200 Mortgage operation Expansion of mortgage services, with emphasis on medium- and low-income groups 300 Total 1,645 Source: Onibokun (Ed.), Estimated total cost (million N) Page 8

9 Table 3. Programme outline for private estate developers, Lagos Type of scheme Limited lay out Comprehensive sites-and-services Comprehensive land-development scheme Source: The Guardian, 8 January, Deve lopers responsabilities Preparation or provision perimeter survey, lay out earth roads, functional drainage, beacon sheets, report on programming. Preparation/provision of: perimeter survey, lay-out plan, beacon sheets, functional drainage, tarred roads, sewage water (borehole), and electricity, feasibility and viability report Preparation/provision of: perimeter survey, lay-out plan, beacon sheets, tarred roads, sewage, pipe borne water, electricity and telephone lines feasibility and viability report, design and construction of buildings Estimated execution time (years), by area Urban Urban fringe Rural Page 9

10 Table 4. Shelter quality in southern states of Nigeria Measure Urban Rural Buildings more than 24 years old Buildings needing major repairs or dilapidated Buildings without pipe borne water Buildings without electricity supply Buildings without W/C Buildings without toilets Buildings without surfaced access roads 63.4 n.a. Source: FRN, 1982; Onibokun (ed.),1985. Page 10

11 Table 5. Infrastructure Development Fund: participants, roes and financing plan Participants Federal Ministry of Works and Housing Participating merchant/ commercial banks Participating state governments World Bank Source: Achunine, Roles Overall policy guidelines and coordination; liaison with the Central Bank, participating financial institutions and Federal Ministry of Finance and Economic Development Act as financial intermediaries; assist states to identify and prepare subprojects for financing; co-finance, on-lend and disburse funds to States; supervise the execution of sub-projects; and undertake debt service collection Identify, prioritize, prepare and submit sub-projects for financing; co-finance sub-projects; and service the debt of sub-projects Co-finance sub-projects; review all sub-projects costing above a stipulated amount; and provide technical assistance where necessary Financial contribution Contribution to sub-projects 10 per cent 15 per cent 75 per cent Page 11

12 Table 6. Provisional population, Nigeria, by state (1991) Region State a O ld name New name Population Bauchi Bauchi 5,104,413 Benue 2,780,398 Benue Kogi 2,099,046 Kwara Kwara 1,566,469 Borno 2,596,589 Borno Yobe 1,439,526 Adamawa 2,124,049 Gongola T araba 1,480,590 Kaduna 3,969,252 Kaduna Katsina 3,778,344 Kano 5,632,040 Kano Jigawa 2,829,929 Niger Niger 2,482,367 Plateau Plateau 3,283,704 Sokoto 4,392,391 North Sokoto Kebbi 2,062,226 Abuja Abuja 378,671 Anambra 2,767,903 Anambra Enugu 3,161,295 Edo 2,159,848 Bendel Delta 2,570,181 Cross River 1,865,604 Cross River Akwa Ibom 2,359,736 Imo 2,485,499 Imo Abia 2,297,978 Lagos Lagos 5,685,781 Ogun Ogun 2,338,570 Ondo Ondo 3,884,485 Oyo 3,488,789 Oyo Osun 2,203,016 South Rivers Rivers 3,983,857 T OTAL 89,252,546 a Old and new names refer to names of states before and after August 1991 Source: Achunine, 1993 (citing 1991 National Census). Page 12

13 Table 7. Estimated household population, Nigeria (1991) Urban Rural Total Population 21,597 66,916,962 88,514,500 Average household size Number of households 4,499,487 11,949,457 16,448,944 Source: Achunine, 1993 (citing the 1991 National Census). Page 13

14 Table 8. Percentage distribution of households, by dwelling types, Nigeria ( ) Dwelling type Urban Rural Whole building Duplex Flat Room Total Source: FOS. 1986: Page 14

15 Table 9. Estimated housing stock, by dwelling types, Nigeria (1991) Dwelling Urban a Rural Total Percentage Units ('000) Percentag e Units ('000) Percentag e Maisonette (mansion) Duplex Detached bungalow , ,627 Semi-detached bungalow Flat Room 65 2, , ,393 Others Total 100 3, , ,221 a 25 per cent housing shortage assumed for urban areas. Source: Based on Achunine, Units ( 000) Page 15

16 Table 10. Housing tenure, Nigeria ( ) (percentage) Type of tenure Urban Rural Owner-occupier Renting Free Total Source: FOS, 1986: Page 16

17 Table 11. Estimated housing needs Nigeria ( ) Urban areas Rural areas Total Housing stock 1991 ('000 units) 3,373 11,848 15,221 Estimated number of households 2001 ('000) 7,289 15,295 22,584 Required output ('000 units) 3,916 3,447 7,363 Required annual output, ('000 units) Source: Based on Achunine, Page 17

18 Table 12. Household income groups, Nigeria Monthly household income (N) < Total 101 N= 4,668 households. Source: FOS, Percentage of total population Page 18

19 Table 13. Income groups, Nigeria (1992) Income grup Percentage of all households Monthly household income (N) Lowest Low Middle High Source: Achunine, Page 19

20 Table 14. Housing prices by types, Owerri, Nigeria (1992) Housing type Estimated market value (N thousands) Maisonette 1,200-2,000 1,500-2,000 Duplex n.a. n.a. Detached bungalow w/1 bedroom Detached bung&low w/2 bedroom Detached bung&low w/3 bedroom ,000 Detached bungalow w/4 bedroom , Semi-detached bungalow w/2-3 bedrooms Block of flatsa w/1 bedroom b c Block of flatsa w/2 bedroom 1,000-1, Block of fiatsa w/3 bedroom n.a Room in tenement building n.a Room in "shanty" dwelling n.a a A typical block contains 6 flats. b For entire block. c For a single flat. Source: Achunine, Estimated monthly rental value (N) Page 20

21 Table 15. Household incomes and dwelling type options, Nigeria (1992) Income group Dwelling options Lowest Room in shanty dwellings Low Room in tenement dwelling; and 1-bedroomed flat (in block of flats) Middle 2-3 bedroomed flats; 1-2 bedroomed detached bungalow; and 2-3 bedroomed semi-detached bungalow High 3-4 bedroomed detached bungalow; duplex; and maisonette Source: Achunine, Page 21

22 Table 16. Housing demand, by type of dwelling units (1992) Dwelling types Rooms; and l-bedroomed flats 90.0 T wo-bedroomed flats; and 1-2 bedroomed bungalows bedroomed bungalows; duplexes; and maisonettes 2.9 Total Source: Achunine, Percentage of demand Page 22

23 Table 17. Sources of housing finance in selected states of Nigeria (per cent) (1980) State Building society Bank loan Loan from employer Loan from family Personal efforts Total Gongola Kano Kaduna Anambra Rivers Bendel Oyo Lagos Source: UNCHS (Habitat), Page 23

24 Table 18. FMBN savings instruments ( ) Category of saving Popular savings 9.5 T arget savings 9.75 T erm savings Children's savings 10 Source: Achunine, Annual interest rate (percentage) Page 24

25 Table 19. FMBN mortgage loan applications funds Year Loan applications (N) Available funds (N) Total 2, Source: Achunine, Page 25

26 Table 20. Types of lending body preferred, northern states State Coperatives Local government State government Friends Kano/Kaduna Benue/Plateau Borno Sokoto Niger Bauchi Gongola Kwara Total N= 807 respondents. Source: FMH&E & ABU, 1981:121. Page 26

27 Table 21. Housing construction by the Federal Government Staff Housing Board Year Amount committed ( N'000) , , n.a , ,293 Source: Achunine, Page 27

28 Table 22. Housing production by FHA Location (state) Number of unites Status of occupiers and units Lagos (Lagos) FEST AC 15,000 Varied: low-, middle- and high-income Ipaja 4,000 Mostly low- and middle-income Prototype 100 Low-income Akure (Ondo) 320 Mostly low- and middle-income Benin (Edo) 162 (suspended in 1989) Sokoto (Sokoto) 81 Middle-income T rans-amadi layout (Abuloma) 48 High- and middle-income Port Harcourt (Rivers) Rumueme 44 High- and middle-income Owerri (Imo) 320 High- and middle-income Calabar (Cross River) 120 (suspended) Abuja (FCT ) Kano (Kano) Karu 251a High- and middle-income Kubwa Estate 1,316 2 bedroomed terraced and semi detached, low- and middle-income Maitama District 620b 2-3 bedroomed flats, low- and middle-income Asokoro Estate bedroomed units, mixed Sharada bedroomed bungalows, high and middle-income Prototype 9 Detached and semi-detached, middle- and high-income Kaduna (Kaduna) 176 Detached and semi-detached, middle- and high-income Minna (Niger) Bosso Estate bedroomed bungalows Total 23,134 a: Bungalows. b: Flats. Source: Achunine, Page 28

29 Table 23. Allocation of plots under the National Sites and Services Scheme ( ) Project (state) Number of plots Akure (Ondo) 305 llorin (Kwara) 190 Onitsha (Enugu) 485 Owerri (Imo) 685 Rumeme/Woji (Rivers) 409 Sharada/T ukun Tawa (Kano) 398 Satellite Town (Lagos) 893 Isheri Olofin 11 (Lagos) 1,585 Abesan 1 & 11 3,312 Total 8,072 Source: Achunine, Page 29

30 Table 24. Housing stock, LMA, by type Area Single-family Flat or apartment Rooming type Total Lagos Island Ebute-Metta Yaba Surulere All areas N = 1566 households. Source: Achunine, 1993, citing a LEDB study. Page 30

31 Table 25. Housing needs, LMA Particulars Household formation (natural population and migratory growth) 47, ,440 Accumulated deficit and demolitions arising from public works 12,000 20,000 Replacement of substandard dwellings 44, ,000 Vacancy reserve and units converted to secondary uses 6,282 55,120 Total 111, ,560 Source: Achunine, Page 31

32 Table 26. Housing demand, LMA Source of demand New households 84,000 90,000 T o eliminate overcrowding 17,000 19,000 Immigration 52,000 54,000 Relocation of displaced households 1,200 1,500 Total expected demand 154, ,500 Source: Achunine, Page 32

33 Table 27. Housing supply, LMA Source of supply Number of houses completed with official approval 7,919 9,775 Number of houses completed without permit (estimate) 2,000 3,000 FEST AC housing scheme 15,000 0 Houses vacated (by dissolved elderly households, out-migrants etc.) 2,000 6,000 Nigerian Building Society 3,200 7,580 LSDPC projects 2,140 3,200 Federal Housing Scheme etc. 15,000 15,000 Sub-total 47,259 44,564 Less demolitions for public works 4,000 6,000 Total supply 43,259 38,564 Source: Achunine, Page 33

34 Table 28. LSDPC low-cost housing production in LMA ( ) Number of units Started Completed Name of estate Abesan ,272 Abule-Nla Akerele Amowu Odofin 7-8 2,968 Anikantomo Badagry Bank Olemoh Dolphin - 576a - - Epe Iba ,560 Ijaiye Ijeh Ikorodu llasan 72 n.a. 216 n.a. Iponrin ,002 Isolo ,632 Ita-Agarawu Itire Lawanson Ojokoro Oko-Awo Surulere Total 157 1, ,242 a In Source: Achunine, Page 34

35 Table 29. LSDPC medium-income housing production in LMA ( ) Number of units Started Completed Name of estate Alaperc Amuwo Odofin Ijaiyea Ogba Omole Opebi (Maryland) Total a An additional 108 units was started and 28 units completed in Source: Achunine, Page 35

36 Table 30. LSDPC upper-medium income housing production in LMA ( ) Name of estate Started Number of duplexes Completed Amuwo-Odofin Dolphin Scheme Dolphin Phase 11 Herbert Macauley Scheme Isolo (Bungalow duplexes) Ojota-Ogudu GRA Total , Source: Achunine, Page 36

37 Table 31. Housing projects executed by HFP Engineering (Nig) Ltd Number and type of units Client 4 units of accommodation for ratings Ministry of Defence (Navy) 108 one-bedroomcd units Ministry of Defence (Navy) 36 two-bedroomed units Ministry of Defence (Navy) 80 three-bedroomed units Ministry of Defence (Navy) 24 four-bedroomed units Ministry of Defence (Navy) 14 four-bedroomed duplexes Ministry of Defence (Navy) 2 five-bedroomcd duplexes Ministry of Defence (Navy) 16 domestic quarters Ministry of Defence (Navy) 1 bachelor officers' quarters Ministry of Defence (Navy) Dolphin Phase 1: 620 duplexes Lagos State Govt. Dolphin Phase 11: 136 two-bedroomed flats LSDPC 138 units of three-bedroomed flats 216 units of duplexes Lagos State Govt. Ebute Motto Scheme Ikota Low Income Scheme Dany Estate 6 units of five-bedroomed detached houses HFP 32 units of four-bedroomed duplexes HFP 1434 high-income units, Victoria Garden City Estate HFP Source: Achunine, Page 37

38 Table 32. The National Sites-and-Services Scheme (number plots allocated) Densities Location High Medium Low Industrial Total Isheri-Olofin (Phase 1 & 11) 886 1, ,890 Abesan - Suleru Oje ,138 Abesan - Aboru 416 1, ,222 Satellite Town T otal 1,399 3,776 1, ,723 Source: Achunine, Page 38

39 List of Acronyms CBN Central Bank of Nigeria CBO Community-based organization FCT Federal Capital Territory FHA Federal Housing Authority FMBN Federal Mortgage Bank of Nigeria FMH&E Federal Ministry of Housing and Environment FMW&H Federal Ministry of Works and Housing FOS Federal Office of Statistics FRN Federal Republic of Nigeria GRA Government Reservation Area GSS Global Strategy for Shelter to the Year 2000 IDF Infrastructure Development Fund LEDB Lagos Executive Development Board LMA Lagos Metropolitan Area LSDPC Lagos State Development and Property Corporation N Naira NBRI National Building Research Institute NBRRI Nigerian Building and Road Research Institute NBS Nigeria Building Society NEP PLC National Electrical Power PLC NEPA National Electrical Power Authority (Now NEP PLC) NGO Non-governmental organization NHF National Housing Fund NISER Nigerian Institute of Social and Economic Research NITEL Nigerian Telecommunications Limited Page 39

40 Bibliography Aaron, Henry, J Shelter Subsidies: Who Benefits from Federal Housing Policies? Washington, D.C., The Brookings Institution. Abrams, Charles Housing in the Modern World: Man's Struggle for Shelter in an Urbanizing World, Cambridge, MS., M.I.T. Press. Achunine, B.O "Dynamics and strategies for urban housing and infrastructure in developing countries: a case study - Lagos Metropolitan Area, Nigeria", unpublished Ph.D. Dissertation, Michigan State University, Achunine, B.O "Financing investment programmes for human settlements developments in Nigeria-, case study prepared for UNCHS (Habitat), Nairobi. Achunine, B.O "Residential stability of the inner-city urban poor: evaluation of relocation experience in Nigeria", case study prepared for UNCHS (Habitat), Nairobi. Achunine, B.O "National trends in housing production practices in Nigeria-, case study prepared for UNCHS (Habitat), Nairobi. Association of Housing Corporation of Nigeria Nigerian Housing and Development. Baross, Paul (ed.) Experiences with Settlement Improvement Policies in Asia: Four Case Studies, Rotterdam, BIE Forum. Chief Statistician Urban Consumer Surveys in Nigeria, Lagos, Federal Office of Statistics. Federal Department of Information, Policy Division "2 years of President Shagari's Administration-, Lagos. Fingerhuth and Partners Imo State Capital Owerri, Master Plan Twin City Zurich and Owerri, May. FMH&E and Ahmadu Bello University, Zaria (ABU) Rural Housing Research, Final Report. FMH&E and NISER Rural Housing in the Southern States of Nigeria: Final Report. FMW&H Draft Report of Committee on the New National Housing Policy. FOS National Integrated Survey of Households, Report of General Household Survey, April 1981 March 1982, Lagos, Household Survey Unit, FOS. FRN Third National Development Plan, , vol. 1. Lagos, National Planning Office, Federal Ministry of National Planning. FRN Fourth National Development Plan, , vol. 1. Lagos, National Planning Of Office Federal Ministry of National Planning, Lagos. FRN Report of the Special Committee on New National Housing Policy, Lagos. FRN Draft New Housing Policy, Lagos Federal Ministry of Works and Housing. FRN National Housing Police, Lagos, Federal Ministry of Works and Housing. Grimes, Orville F. Jr Housing for Low-income Urban Families Economic Planning in the Developing World, Baltimore, The Johns Hopkins University Press. Lawal, M.I. (not dated). "Estimating housing needs: standards, priorities and needs in Metropolitan Lagos, Nigeria. unpublished. Page 40

41 LSDPC Annual Report, Lagos. LSDPC Annual Report, Lagos. LSDPC Annual Report, Lagos. LSDPC (not dated). "Housing delivery in Lagos State - challenges of the eighties". LSDPC (not dated). "Fifty years of housing and planning development in Metropolitan Lagos: challenges of the eighties-. Odimuko, C.L Shelter for All by the Year Strategies for Public and Private Sector Involvement in a Depressed Economy, published in commitment to IYSH by the Urban and Regional Planning Division, Federal Ministry of Works and Housing, Lagos. Odimuko, C.L "Evaluation of experience with and initiating Enabling shelter strategies; country case study of Nigeria, prepared for UNCHS (Habitat). Onibokun, P "Housing finance in Nigeria: a critical survey of private and G.A., public sources", Town Planning Review, vol. 42, No. 3, July. Onibokun, P "A critical review of Nigerian Government housing policy and programmes-, 2nd International Conference on Housing, University of Ibadan. Onibokun, P. (ed.) Housing in Nigeria (A Book of Readings), Ibadan, NISER. Report of a Workshop on Urban Planning for Housing and its Infrastructure, Owerri, Imo State, Smith, Mary E.H., Guide to Housing, The Housing Centre Trust. Smith, Wilbur, and partners Master Plan Lagos Metropolitan Area, Lagos. Strassman, W.P., "Housing strategy in developing countries: costs and simulated consequences", unpublished monograph. UNCHS. 1990a. Shelter For All, Nairobi UNCHS. 1990b. The Global Strategy for Shelter to the Year 2000, Nairobi. UNCHS Housing Finance Manual for Developing Countries; a Methodology for Designing Housing Finance Institutions, Nairobi. Page 41

42 Notes 1. The data contained in this report were collected before the military coup in A number of those displaced by this scheme settled in the Falomo squatter settlement on Lagos Island. When land was needed for the development of a large shopping centre in the mid-1960s, the squatters were evicted. No arrangement was made for their resettlement. Most of them moved to the slum areas of Maroko and Ilado which wee demolished in Page 42

43 ABOUT National Trends in Housing-Production Practices HS/313/93 E ISBNE (electronic version) Text source: UNCHS (Habitat) printed publication: ISBN (published in 1993). This electronic publication was designed/created by Inge Jensen. This version was compiled on 2 January Copyright 2001 UNCHS (Habitat); UN-HABITAT. All rights reserved. This electronic publication has been scanned from the original text, without formal editing by the United Nations. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Secretariat concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Reference to names of firms and commercial products and processes does not imply their endorsement by the United Nations, and a failure to mention a particular firm, commercial product or process is not a sign of disapproval. Excerpts from the text may be reproduced without authorisation, on condition that the source is indicated. UN-HABITAT publications can be obtained from UN-HABITAT's Regional Offices or directly from: UN-HABITAT, Information Services Section, G.P.O. Box 30030, Nairobi 00100, KENYA Fax: (254) or ( /7) Habitat.Publications@unhabitat.org Web-site: Page 43

44 Foreword In most developing countries today, the provision of shelter is grossly inadequate. This is so despite several decades of direct government intervention in the shelter sector. The adoption by the United Nations General Assembly of the Global Strategy for Shelter to the Year 2000 (GSS) in 1988 implied a global recognition of the severity of the housing problem. Since the public sector has shown itself unable to meet the increasing housing demand, the GSS calls for the adoption of new roles and responsibilities of the various actors in the shelter-delivery process. It does not, however, propose that governments should withdraw from housing. On the contrary, the GSS places significant responsibilities on the public-sector agencies for creating an enabling environment and ensuring the availability of shelter for all. By emphasizing the need for flexibility and local initiative in designing the new housing policy, it recognizes that the response of government in various countries may differ, depending on their respective housing conditions and the state of administrative and regulative system. That is the point of departure for this publication, which is a series of four volumes on national trends in housing-production practices in India, Indonesia, Mexico and Nigeria, respectively. All four countries have recently adopted new national housing policies that incorporate the enabling approach advocated in the GSS. These publications identify problems encountered and lessons learned during the process of initiating enabling shelter strategies. Yet, because the experiences in different countries in many ways are unique, it is necessary to discuss the experiences gathered against the background of a more comprehensive discussion of the shelter-delivery process in the individual countries. None of the four publications in this series thus attempts to compare the experiences of different countries. That has been done - with a particular focus on the lowest income groups - in a separate publication entitled National Experiences with Shelter Delivery for the Poorest Groups. The four volumes take a close look at the implementation of the GSS at the national level. They also review lessons at the sub-national level, by presenting the experience of the cities of Bombay, Calcutta and Delhi in India; Jakarta and Bandung in Indonesia; Mexico City, Ciudad Obregon and Papa in Mexico; and Lagos in Nigeria. A particular emphasis of all four publications is the presentation of data documenting the performance of the shelter sector at large and of the various actors involved therein. Each of the four volumes consists of four main parts. The first part takes a close look at the development of national shelter policies and strategies in the light of the introduction of enabling shelter strategies. It also describes the scope and scale of the shelter problem in each of the four countries. The second part analyses the changing roles and responsibilities of the various actors in the shelter-delivery process, including relevant financial institutions and instruments. It also provides figures on actual housing production at the national level. The third part takes a closer look at the above issues at the city level. The fourth and concluding part, is just that, a conclusion to the above discussion. The chapter highlights obstacles to an effective housing supply, as well as particular innovative approaches towards alleviating the housing problem in the country. The main conclusion that can be drawn from these studies is that the shelter problem today in most developing countries is worse than it was before massive public-sector interventions were initiated two to three decades ago. The example of Indonesia can serve as a good illustration of the rather limited success of two decades of direct shelter provision by the public sector. Total public-sector housing supply during the entire period is less than the annual housing need created by population growth alone. Furthermore, there are signs in all four countries that public-sector involvement in housing is being reduced, i.e., while the volume of units produced is increasing, public-sector investments in housing are decreasing. This indicates a trend where the focus of formal-sector housing production is turning away from the production of ready-to-move-in units and towards the provision of a wide menu of actions that lead to the construction of a dwelling unit. This results in a situation in which more units (although qualitatively different) can be produced with the same amount of funds. Yet, if the total formal-sector investment is reduced, this may indicate the beginning of a trend where the importance of shelter is being reduced rather than strengthened. However, the picture is not altogether bleak. The four publications also show examples of how the shelter problems can be effectively addressed. We should, nevertheless, keep in mind that in any market, choice is a positive function of income. The consequence is that in a situation of housing shortage, the poor have no choice in housing at all. Any strategy to alleviate the shelter problem should keep this in mind. Unless housing supply is fully able to meet the need, direct interventions are required if the needs of the poorest groups are to be addressed. We gratefully acknowledge the contribution of Dr. Basil Obi Achunine for the preparation of the case study on which this publication is based. Page 44

45 Dr. Wally N'Dow Assistant-Secretary-General, United Nations Centre for Human Settlements (Habitat) Page 45

46 Chapter I. Changing shelter policies in Nigeria Housing represents one of the most basic human needs and has a profound impact on the health, welfare, social attitudes and economic productivity of the individual. It is also one of the best indications of a person's standard of living and of his or her place in society. Despite this essential role played by housing as a basic need, an adequate supply of this commodity has been lacking in virtually all societies throughout history. The situation is particularly serious in the developing countries where population growth and urbanization are increasing very rapidly and where the gap between housing need and supply is greatest. This condition remains because housing has typically been regarded as an unwanted stepchild, a frustrating nuisance in the family of projects that constitutes development or economic programmes. Paradoxically, past theories of economic development regarded housing as a non-productive, durable consumption good or service with an extremely high capital output ratio. Nigeria belongs to the category of countries where the above conditions prevail. The subject of housing has generated much discussion and interest in Nigeria in the last two decades. This has given rise to calls on the various levels of government to give greater priority to the inherent housing problems and to allocate a reasonable percentage of their annual budget to housing. Unfortunately, the provision of housing has been generally viewed by policy-makers in Nigeria as something to be tolerated rather than desired. This attitude has resulted in giving housing a low priority rating (until recently) in development planning. For example, specific output targets have always been set for agriculture, manufacturing industries, roads, water etc., but housing has been treated as a "social overhead." Relatively little continues to be done in improving housing supply in comparison with overall needs. Therefore, housing remains one of Nigeria's most intractable problems; one which is continually getting worse as the rapid population growth and consequent urbanization goes on unabated in spite of the seemingly huge assets allocated to this sector. In fact, it may well be seen as the great Nigerian failure of the last two or three decades. In order to achieve the national objectives of the shelter strategy it should be linked to the overall settlements policies, since shelter is an integral part of settlements development. The basic relationship of land to housing is at times not obvious. A house is fixed to land and involves a package of related goods and services. The house is helpless in escaping development shifts and changing environmental conditions as land uses are not readily interchanged. Housing is more than shelter, it encompasses all the ancillary services and community facilities which are necessary to human well-being. These include the land, utilities and services (infrastructure), access to employment and social amenities as well as the structure or shelter itself. The relationship between the provision of housing and adoption of urban or city planning measures as a prerequisite to that provision is very fuzzy and sometimes utterly unclear in Nigeria, even among practicing professionals in related fields. Urban planning as an integral component of the housing-delivery system has consisted of a framework of rules, presented as being neutral, and legitimized on the grounds of being in the public interest. However, within the urbanized areas of Nigeria characterized by extreme social and economic inequalities, it is not difficult to show that the neutrality is a myth. Invariably, its impact on different sections of the population is far from equal - an example of the "social injustice within the city". But evidence of this does not in itself help in identifying the means by which that situation could be transformed. Page 46

47 Chapter I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector A casual review of past housing policies and programmes of both the public and private sectors in Nigeria reveals that effective solutions to housing problems are yet to be found. The varied approaches made by the successive Nigerian Governments towards solving the housing problems have depended mainly upon the specific situation encountered, the resources they could command and the general attitude towards housing. Because of the above, Governments in Nigeria have maintained that housing should be an integral part of economic development plans, while encouraging the private sector to be the main source of investment in housing. ID this way, as earlier said, housing production and delivery has been an important part of national development planning classified under the major heading "social sector" It has always been assumed that the housing situation in Nigeria would improve as general economic conditions improved, especially in the major urban centres. Yet, based on this "wait and see" attitude there have been more failures than successes. In Nigeria most individuals aspire for the day when they will own their houses. The aim of private house developers is not necessarily to live in them as owner-occupiers, but to rent them out at exorbitant prices to recoup their investments as soon as possible. Thus, house-owners in the cities are not interested in providing the needed facilities, and do not care if there is access to their houses or not. The shelter history of Nigeria reflects four public-sector policy periods (FRN, 1985; Onibokun (ed.), 1985; I RN, 1990), which are outlined in the sections below. Page 47

48 Chapter I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector 1. Colonial period During the early colonial period, the housing activities and policies of the Government in Nigeria focused on the provision of quarters for expatriate staff and for selected indigenous staff in some specialized occupations like railways, police, education etc. This period saw the establishment of Government Reservation Areas (GRA) as well as a few African Quarters and has been aptly described as the era of "housing reservations." No efforts were made by government to build houses either for sale or rent to the general public and little was done to order the growth of settlements outside the GRA. At this period, public housing development was restricted to Lagos and the regional provincial headquarters. One housing scheme that was introduced to benefit Nigerians during this era was the African Staff Housing Scheme (which became operational in 1956). It was, however, just a token effort. Under this Scheme, qualified indigenous senior civil servants could be granted housing loans of up to five times their annual salary. The conditions or resources for funding the Scheme were not substantial and only a few officers benefited from it. Pursuant to the Town Planning Ordinance (Cap.95), the Lagos Executive Development Board (LEDB) was created in 1928 and charged with the effective planning and development of Lagos. The creation was as a result of the bubonic plague which ravaged Lagos in the early 1920s. After 1954, and with the approval of the Lagos Central Planning Scheme, the LEDB for the first time attempted to solve the problems of public housing in Lagos. In implementing its schemes, the LEDB encountered a number of problems, one of which was that not much was achieved in regard to satisfying the housing need and demand of the inhabitants of Lagos. Among other strategies and measures taken by the Government during the colonial period was the establishment of the Nigerian Building Society (NBS). It was set up in 1956 to provide mortgage loans and to (partially) satisfy Nigeria's housing needs. One of the functions of this Society was to encourage Nigerians to save, particularly for housing investment. The savings scheme witnessed poor response by the public. The demand for mortgage loans was heavy while the resources of the Society were sufficient to meet only a very small proportion of the demands. The loans favoured only upper and middle-class people; low-income earners did not benefit from NBS operations. Page 48

49 Chapter I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector 2. Post-independence period ( ) During this era, especially the period immediately after independence, emphasis was placed on the five-yearly Development Plans as an instrument for economic growth. In the first two plans, the housing sector was virtually neglected. Further deterioration was witnessed in the housing situation during the civil war period, especially in the war-affected areas. In 1967, more housing corporations were established in the newly created states. However, their contributions were rather insignificant. In other words, the scope of their operations were severely restricted due to lack of finance and technical personnel. Hence, these institutions served the upper-income earners only, as only relatively expensive housing estates were developed and loans were rather restricted. The Third National Development Plan period ( ) introduced the most comprehensive and active intervention by the Government in the housing sector. The plan clearly recognized the housing problems and aimed to increase the supply of housing to a substantial level. The Federal Government decided to participate directly in the provision of housing, rather than leaving it principally to the private sector. A total of N 2.6 billion (US $3 billion) was earmarked for the implementation of the various projects during the Fourth National Development Plan period. This represented about 5.6 per cent of the planned total expenditure in all sectors. Page 49

50 Chapter I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector 3. Second civilian (Shagari) administration period ( ) The first two periods and especially this third housing period, witnessed a steady increase in the interest and involvement of the public sector in shelter delivery, and the awareness of the importance of the shelter sector within the overall economy. Although some of the shelter strategies and activities during these periods may be seen to be in conformity with the enabling concept, the direct production of shelter by the public sector remained their common feature. This strategy, which is contrary to the enabling approach, witnessed huge failures during the Shagari administration, when the Federal Government of Nigeria allocated N 1.9 billion for housing construction, in all the 20 states of Nigeria, including Abuja. By June 1983, N 600 million (37.5 per cent) had been spent to complete only 32,000 units, yielding an overall achievement level of just 20 per cent (FRN, 1990: 3). See also table 1. This period coincides approximately with the Fourth National Development Plan period (see table 2 ). It witnessed the continued increasing deficit on urban housing as well as its continuous deterioration in the rural areas. The beneficiaries of this programme were identified as the low-income earners whose annual income did not exceed N A total of 40,000 units (of which 90 per cent were to be one-bedroomed, 10 per cent three-bedroomed) were to be constructed annually throughout the country. In this way, 2000 units were to the built in each state including the Federal Capital Territory (FCT), Abuja. In the states, these housing units were located in their capitals and local government headquarters. This effort was implemented by the then Federal Ministry of Housing and Environment. Mid-way through the implementation, a second phase of the programme was commenced, comprising 20,000 units of two-bedroomed core houses for the low-income groups. It is pertinent to mention that this phase of the programme failed to take off in most states, and that the shelter policy, came to an abrupt end in December 1983, making way for a fresh look at the shelter sector which has culminated in the new National Housing Policy. Page 50

51 Chapter I. Changing shelter policies in Nigeria A. Changing objectives in the shelter sector 4. Second military interregnum ( ) It is perhaps somewhat premature to undertake an evaluation of the policy strategy and performance of this period because the period so far has been very much a transitional one in which the Federal Government has been preoccupied with the preparation of a new and more relevant National Housing Policy. This policy was finalized and launched by the President in February The policy has since become operational as the detailed modalities for its implementation have been put in place. Though there is not much to say by way of the experience derived from its implementation within the short span of its existence, there is no doubt that under the present administration, remarkable achievements have been made in the area of housing and the improvement of the quality of our environment. (1) Page 51

52 Chapter I. Changing shelter policies in Nigeria B. The current shelter policy and its links with the overall economy As stated above, the current shelter policy of Nigeria can only be described as emergent. Following the launching of the new National Housing Policy, the unfolding scenario in the housing sector economy is a clear testimony that with dedication and seriousness of purpose, the citizens can collectively and gradually ameliorate the housing crisis plaguing Nigeria. A meaningful discussion of the current policy must, therefore, at the same time deal with the immediate past policy and its emergent successor, the National Housing Policy. The Third National Development Plan was like a watershed, in the history of policy development in relation to shelter in Nigeria. In that plan it was possible to go beyond the basic human need concept of Shelter to one in which it contributes productively; "shelter" represents one of the most basic human needs and has no doubt a profound impact on the... productivity of the individual" (FRN, 1975: 1:307). Shelter was transferred from the social (consumer) sector of the economy to the regional development sector which was acknowledged to have a greater impact upon development than mere consumption. The priority accorded to the sector and the level of projected public-sector involvement rose dramatically. Post-independence development plans have given little emphasis to Housing having been lumped... with town and country planning which itself has hitherto been regarded as a low priority sector. The government now accepts it as part of its... responsibility to participate actively in the provision of housing... and will therefore intervene on the large scale in this sector..." (FRN, 1975: 1 :308). By far the largest and most conspicuous component of the programme was the National Low Cost Housing Programme which required the direct construction of 200,000 low-cost housing units by government, making use of the services of contractors. The lapses and failures noticed during this period were significant in forcing the search for a new National Housing Policy. Although the plan recognized a number of other measures and instruments for the achievement of its stated shelter objectives - increased investment in the domestic production of building materials, importation of building materials to supplement local input etc. - its basic strategy was clearly the direct production of the set production targets of the plan period. The Federal Government undertook a major reform of the land-tenure system, expanded the financial base of its mortgage agency, and of the institutional base of its mortgage agency, as well as that of the institutional framework for the public sector in the production of shelter. The issue of rent control as a mechanism for increasing access to shelter - though of some concern to government during this plan period - did not make any significant impact. The improved perception of the shelter sector by the Government during the Third Plan period notwithstanding, little overall emphasis was placed on the vital role of the private sector in shelter production or the mass mobilization of human and material resources and participation in support of shelter output. The Fourth National Development Plan period ( ) also accepted the recognition accorded to the shelter sector during the Third Plan period. The basic policy of the Government - of massive intervention in the sector to provide large quantities of housing units with special emphasis on the low-income group - remained unaltered and was reinforced. The fourth plan came to an abrupt end in 1983 when the civilian administration was overthrown in a military coup d'etat. In 1985, the Federal Government, conscious of the inability of previous policies and programmes to deal satisfactorily with the mounting shelter problems of the country, set up a special committee, made up of representatives of relevant public-sector bodies and other non-governmental interests in the shelter sector, to analyse the past national policies and programmes and make proposals for a new national housing policy. The report of the panel formed the basis of the present National Housing Policy, which has a definite and far-reaching enabling orientation. Page 52

53 Chapter I. Changing shelter policies in Nigeria C. Objectives of the National Housing Policy The ultimate goal of the National Housing Policy is to ensure that all Nigerians own or have access to decent housing accommodation at affordable cost by the year In order to achieve this laudable goal, the Government decided to pursue the following policy objectives: Encourage and promote active participation in housing delivery by all tiers of government; Strengthen institutions within the system to render their operations more responsive to demand; Emphasise housing investments which satisfy basic needs; Encourage greater participation by the private sector in housing delivery. The above objectives, among others, constitute the cardinal points for the implementation of the housing policy. To accomplish the objectives, the following strategies have been put in place (FRN, ): Establishment of an appropriate institutional framework to facilitate effective planning in housing supply; Restructuring all existing public institutions involved in housing delivery at the federal and state government levels with a view to making them more effective and responsive to the needs of all Nigerians; Reviving existing laws and regulations, such as the Land Use Decree, the planning laws etc., in order to facilitate housing provision; Improving the finances and strengthening the executive capacity of local governments to enable them to contribute more effectively in housing delivery; Mobilizing private-sector participation in the provision of housing; Producing adequate cadastral and topographical maps to facilitate land use planning and land administration; Producing and updating regional development plans and urban and rural master plans; Upgrading and rehabilitating low-quality or sub-standard houses in urban areas as a step towards improving the quality of the environment; Providing sites and services to facilitate home-ownership and orderly urban and rural development; Improving the quality and quantity of rural housing and infrastructure in order to enhance the quality of rural environment; Restructuring the Federal Mortgage Bank of Nigeria to serve as an apex housing-finance institution; Mobilizing savings through the establishment of a National Housing Fund (NHF); Ensuring a continual flow of adequate funds from various sources into the apex institution for on-lending to other mortgage institutions; Encouraging research into and promoting the use of locally-produced building materials as a means of reducing housing costs; Adoption of functional design standards to reduce costs and enhance socio-cultural acceptability, safety and security and privacy; Page 53