Osilama Emmanuel Osilama, a real estate professional and Chairman & CEO of NuelOsilama Global Investment Limited, has proposed several strategies to address the issue of housing affordability in Nigeria.
To combat the high costs of housing, he emphasizes the importance of promoting local building materials, which could significantly lower production expenses in urban areas. He suggests incentivizing local manufacturers through tax breaks, subsidies, and access to low-interest loans to encourage the domestic production of these materials.
Osilama also highlights the need for government and institutions to invest in research and development to enhance the quality and affordability of locally sourced materials. He stated, “We must support local industries that utilize domestic resources, stabilize the foreign exchange market with sound economic policies to strengthen the Naira, and reduce our dependence on imported materials.”
He advocates for economic diversification to lessen reliance on unstable sectors and calls for investments in infrastructure to improve transportation and logistics. Additionally, he urges the government to streamline customs and import processes to minimize delays and costs, while promoting bulk purchasing and cooperative models for smaller construction firms.
As an estate surveyor and valuer, Osilama recommends simplifying land acquisition by making land registration and titling processes more efficient and establishing transparent land administration systems. He also calls for land reforms to curb speculation and land grabbing, as well as a review of the Land Use Act to facilitate smoother land acquisition.
Other proposed solutions include increasing land availability, releasing government-owned land for affordable housing projects, fostering public-private partnerships for large-scale housing developments, and implementing effective urban planning and zoning regulations.
Osilama identifies the underdeveloped mortgage system as a significant barrier to housing affordability in Nigeria. He advocates for a substantial increase in mortgage funding and the establishment of a national mortgage refinancing corporation to provide liquidity to lenders. He encourages private sector involvement in the mortgage market and suggests exploring innovative financing models, such as cooperative housing and micro-mortgages. Additionally, he calls for policies to lower interest rates, subsidized mortgage rates for low-income earners, relaxed lending criteria, and the development of flexible mortgage products tailored to various income levels.
He also proposes implementing credit guarantee schemes to mitigate lender risk and creating a more efficient foreclosure process that balances the interests of both lenders and borrowers.
Regarding infrastructure deficits, Osilama urges the government to prioritize infrastructure development in areas designated for affordable housing. He calls for significant improvements in roads, electricity, water supply, and sanitation, advocating for public-private partnerships to enhance infrastructure development. To reduce costs, he recommends efficient infrastructure planning and the adoption of cost-effective technologies.
Finally, he emphasizes the need to develop satellite cities to manage rapid urbanization and population growth. “Investing in satellite cities will alleviate pressure on major urban centers,” he said. He also suggests creating economic opportunities in rural areas to slow urban migration, implementing effective urban planning, developing comprehensive urban plans that address housing needs, enforcing zoning regulations to control urban sprawl, and investing in mass transit systems.
