Project – An examination of sustainable housing delivery by private developers

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

In recent times, the growing urban population and the poor housing conditions of the vast majority of urban dwellers in developing countries have become an important issue of concern in global discourse. Many of these countries are experiencing severe pressure on urban housing as a result of mismatch between their housing provisions and urbanization trends. In many countries in Africa, rapid urbanization and rising urban housing costs coupled with high rate of urban poverty, weak governance, and inefficient public services have continued to aggravate the situation (Nwankwo, 2018).

Africa’s annual urban population growth rate of 3.23 percent in 2011 (United Nations, Department of Economic and Social Affairs, Population Division, 2012), makes it the fastest urbanizing continent in the world. Demographic growth has continued against a considerable and constantly increasing housing deficit (UN-Habitat, 2010). Thus, housing shortages, poor housing qualities, slums, and squatter settlements are commonplace.

Housing has a profound influence on the health, efficiency, social behavior, satisfaction and general welfares of human beings and its community. Okedele, Adebayo, Iweka, Aco and Uduma-Olugu (2009) opined that, in the evaluation of man’s comfort, growth and development, it is inevitable that housing be considered as a critical element.

Demographic growth has continued against a considerable and constantly increasing housing deficit (UN-Habitat, 2010). Thus, housing shortages, poor housing qualities, slums, and squatter settlements are common phenomenon for discussion.

Affordable housing, according to Andrew (1998) is that housing which does not cost more than 30% of the income of the occupant household and that any family that pays 50 percent or more of house hold income are under severe housing burden. Families that pay more than 30 percent of their income on housing are considered cost burden and may have difficulty affording other necessities, such as food, clothing, transportation and medical care (HUD, 2005).

Cox and Partelich (2010) are of the opinion that for metropolitan area to rate as affordable and ensure that housing bubbles are not triggered, housing prices should not exceed three times gross annual house hold income. Existing research by Atamewan et al. (2017); Nwankwo (2018); Oni-Jimoh et al. (2018) and other scholars has documented the measures for a sustainable housing delivery approach in Nigeria concerning private developers’ operations and concerning funding such projects across the country. However, the struggle to keep pace with emerging urbanizations trends has created a plethora of mixed housing conditions within the cities with a combination and co-existence of best, moderate and worst forms of housing. Consequently, this study aims to examine the approach for sustainable housing delivery through private developers in Nigeria with particular emphasis to Lafia metropolis of Nasarawa State.

1.2   Statement of the Problem

In plain terms, AHURI, (2004) states that housing affordability refers to the capacity of households to meet other basic cost of living. Thus, it will be seen that the housing affordability issue is a crucial determinant of quality of life of people. It is crucial to state that while the state governments built estates that are more or less allocated to civil servants on owner occupier basis, the ones built by private developers are sold at exorbitant rates.

The cost at which the house reaches the market will go a long way to determine affordability. The income of an employee determines his ability to afford a house. Where per unit cost of building is abnormally high as we have today, the simple implication is that few people will be able to afford it (Bello, 2008). The limited finance available will not be able to spread around the potential home owners. The gap between income and shelter cost in Nigeria is very wide. This has eliminated the low-income earners from the housing market. According to Bello (2008), high cost had been attributed to the following: Rising cost of building materials, inflation rate in the economy, high space and quality standards adopted by designers, fees of professionals involved in designs and construction, excessive profit of contractors. The average income of Nigerians is too low to support the construction of buildings within a short or even medium time span (Opaluwa, 2010). Many even find it difficult to cope with regular and prompt rent payment. This makes the aspiration of the average Nigerian to own a house or occupy adequate rented apartment almost elusive. Ademiluyi and Raji (2008) stated that a recent World Bank report noted that two of the most critical urban development issues facing Nigeria are the financing of urban infrastructure and the institutional arrangements for housing delivery in urban centers. The provision of basic utilities and services particularly housing is partly the responsibility of the government, which has been handicapped in recent times by declining political will and many more factors. Ajanlekoko (2001) posits that, housing finance by its very nature is capital intensive venture which if it is to be financed through personal finance resources will require slow and tedious accumulation of savings.

The key elements lacking in the private sector initiatives are that of affordability, end-user driven and value management. Hence it is against this background that this research seeks to examine the sustainable housing delivery by private developers in Lafia metropolis of Nasarawa State so as to device strategies for improving affordable housing provision in Lafia.

1.3   Aim and Objectives

The major aim of this study is to examine sustainable housing delivery by private developers in Lafia metropolis of Nasarawa State.

The specific objectives are;

1. To determine the roles of private developers in sustainable housing delivery in Lafia metropolis.
2. To ascertain the strategies adopted by private developers in sustainable housing delivery in Lafia metropolis.

• To assess the achievements of private developers in sustainable housing delivery in Lafia metropolis.

1. To ascertain the problems affecting the achievement of adequate housing in Lafia metropolis.
2. To determine the constraints limiting the sustainable housing delivery in Lafia metropolis.

1.4   Research Questions

The following research questions were used as guide to achieve the aim and objectives of the study.

1. What are the roles of private developers in sustainable housing delivery in Lafia metropolis?
2. What are the strategies adopted by private developers in sustainable housing delivery in Lafia metropolis?

• What are the achievements of private developers in sustainable housing delivery in Lafia metropolis?

1. What are the constraints limiting the sustainable housing delivery in Lafia metropolis.
2. What are the problems affecting the achievement of adequate housing in Lafia metropolis.

1.5   Significance of the Study

The outcome of this research work will be of immense value to several interest groups among who are; the academia, financial institutions, investors/investments analyst and public authorities.

The study will reflect the effect of the implementation of mass housing on housing provisions in Lafia. The results of this research will be an awaken call to improved performance of government and so strengthen further the provision of housing stocks within Nigeria, as such it also provides the rationale for developing an effective housing policy framework towards achieving sustainable urban development in Nigeria.

The results of this study will help the policy-makers and executors to know the relevance of private estate developers in the provision of affordable housing so as to avoid the pitfalls or gray areas inherent in partnering and providing enabling environment for their effective operation.

Theoretically, the study will serve as a contribution to knowledge regarding the effects of the implementation of mass housing on housing delivery in Nigeria and Lafia in particular. More so, it serves as a reference material for administrators and policy makers at all levels of government.

1.6   Scope and Limitation

The researcher has decided to limit the scope of the study to some selected private estates in Lafia metropolis of Nasarawa State. This is because the researcher feels it is possible to a large extent to obtain all the required information needed in drawing up conclusion on this study. The study will concentrate on the examination of sustainable housing delivery by private developers in Lafia metropolis of Nasarawa State.

1.7   The Study Area

The study area is located between latitude 8⁰20N – 8⁰38N and between longitudes 6⁰34E – 7⁰30E. it shares boundaries with Nasarawa Eggon and Wamba Local Government Area (L.G.A) in the North, Obi Local Government Area (L.G.A) in the South East, Doma Local Government Area (L.G.A) in the South-West, Kokona Local Government Area (L.G.A) in the West and Plateau State in the East respectively (Figure 1).

The climate exhibited in the area under study shows no difference from that experienced over other parts of the Nasarawa State, which is characterized by a sub-humid climate with two distinct seasons; dry and rainy season (Akwa et al., 2005).

The study area has population of 330,712 according to National Population Commission Lafia (2006). The area falls within the guinea savanna zone characterized by scattered trees and grasses. The geology comprised of the basement complex formation of North Central Nigeria with undulating low lands and network of hills developed on granites, magnetic rocks which are believed to be plutonic in nature but later exposed to the surface by geomorphic processes.

Project – An examination of sustainable housing delivery by private developers