Experts seek enabling environment to grow housing sector


To unlock more growth in the sector, the Managing Director of Sabreworks ltd, Mr. Olusegun Philips has urged the Federal and State governments to provide an enabling environment that encourages local and foreign investments in real estate.

He called for a review of the Land Use Act, which he noted has been a stumbling block for investors.

Philips spoke on the sidelines of the unveiling of the firm's ambassador, Banke Akinterinwa, who is a Nollywood actress and launch of Sabreflexx, a saving platform for accommodation in Lagos.

He explained that the decree is still a looming factor in the industry as a whole adding that it should be revised to cater to existing, changing values and dynamics of transactions in the sector.

The MD lamented that the act is slowing public and private external investments as well as the rightful intentions of genuine developers from participating in the industry.


"Why should a Land Use Act be used in a democracy? We need to look at the decree; it does not encourage fast-track OFlocal and foreign involvement in the sector. When the government allocates everything to itself bullishly, it doesn't advance progress. It should be revised to make land use act or law to become usable and tenable by everybody."

On the existing housing deficit, Philips said there was the need to extend the tenor of a mortgage from 15 to 30 years to allow more homeownership.

According to him, policies that encourage banks to review and increase the tenor of mortgage to a minimum of 20 years and at single-digit must be introduced to make the industry thrive. Phillips also encouraged Nigerians to develop the culture of saving towards homeownership as a viable solution to reduce homelessness in the country.


"Government needs to subsidise building materials and other things that have to do with construction to reduce prices of housing units. Incomes don't meet with the increase in prices of things anymore. If I start a project using blocks and cement at N2.5m and in one year I'm buying the same cement at N4.1m, you can't expect the price of housing to be the same because we are restricted to market forces of demand and supply", he said.

On his part the executive director of the firm, Mr. Kayode Fagbadebo said with the reality that demand for housing exceeds the supply, the government and the private sector need to recognise that housing is one of the needs of an average Nigerian.

He said: " We need to be more intentional about the sector. If we are trying to get food security right, we must also try to get affordable accommodation right, if not we will keep keeping miscreants on the streets. Affordable should come in the form of cheap rentals, funds for the sector should go to the right hands and there should be incentives for developers."



← Previous "Cooperative federation seeks govt support for housing""Cooperative federation seeks govt support for housing" Next →


Similar Article


Why Many Cooperative Societies Fail In Nigeria Photo

Why Many Cooperative Societies Fail In Nigeria

Have you ever thought to yourself why sometimes you hear about some cooperative societies, then suddenly you stop hearing about them? Sometimes cooperative societies find it difficult to survive due to certain factors and this has hampered growth in Nigeria's economy. Cooperative societies are autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs by forming an enterprise owned and controlled by a group of people. They are crucial in...



Cooperative federation seeks govt support for housing Photo

Cooperative federation seeks govt support for housing

Lagos State Cooperative Federation (LASCOFED) has asked Lagos State Government for 50 acres for construction of houses for members. The request is contained in a goodwill message by the LASCOFED President, Mr. Oladipo Shobule, last week to commemorate this year's International Day of Cooperatives, which holds every first Saturday in July. According to Shobule, the state government is expected to provide land for the national housing programme, while the Federal Government builds on it...