Stakeholders decry insecurity as hampering growth of housing sector
Insecurity in Nigeria is rising at a frightening dimension that no day passes without the country witnessing wanton destruction of lives and property.
This has also in no small way dampened the morale of investors who will not like to invest in a sector such as real estate where their safety is not guaranteed and the possibility of recurring funds on investment is minimal.
Now, kidnapping, banditry, terrorist attack or the threat from tribal and secessionist factions across the nation point to the fact that no part of the country is now a safe haven for investors.
A recent survey by the Housing Development Advocacy Network (HDAN) has disclosed deeply a seeming correlation between the negative effects of insecurity and investment flight particularly where real estate and housing programmes are concerned.
Investigations have shown that the Federal government’s ability to execute its plans aimed at bridging the over 22 million housing gap in the country, as well as the Federal Government planned 300,000 housing projects across the 36 states of the Federation and FCT have been suffering some hitches due the spate of insecurity nationwide.
Nigerians are being kidnapped on the roads, construction sites, among others giving rise to huge demand for ransoms; imminent social unrest from protest against harsh policy, terrorism, herders-farmers clash and reprisal attacks by bandits involving the destruction of houses and commercial properties.
Even though the level of insecurity differs from state to state and region to region, the situation has become a national threat and embarrassment as it is seriously impacting negatively on the real estate sector.
A World Bank 2016 report has indicated that since beginning of terrorism scourge in 2009 across North Eastern and North Central Nigeria, nearly 30 percent of properties destroyed or damaged were private houses.
The bank also stated that 956,453 (nearly 30 per cent) out of 3,232,308 private houses; 5,335 classrooms and school buildings in 512 primary, 38 secondary and two tertiary institutions; 1,205 municipal, local government or ministry buildings; 76 police stations.
The Permanent Secretary of the ministry of Reconstruction, Rehabilitation and Resettlement stated that properties worth One Trillion Naira have been destroyed so far.
He further stated that the insurgents have razed down 986, 453 residential homes; 5,335 classrooms, 201 health facilities, 1, 630 water facilities and 726 power distribution stations and transformers, 800 public structures such as offices, prisons, police posts, among other structures.
Placing value to properties destroyed by insecurity in core States in the North East alone, the Permanent Secretary of the ministry of Reconstruction, Rehabilitation and Resettlement stated that properties worth One Trillion Naira have been destroyed so far.
He further stated that the insurgents have razed down 986, 453 residential homes; 5,335 classrooms, 201 health facilities, 1, 630 water facilities and 726 power distribution stations and transformers, 800 public structures such as offices, prisons, police posts and other structures.
Consequently, prospective home owners are being denied the choice of where to stay as well as affordable housing because insecurity has a way of increasing the cost of housing due to over concentration in a few markets like Abuja and Lagos.
It is a wakeup call for the government to stem the tide of insecurity so that affordable housing which is a fundamental right of all Nigerians will be met and under no circumstances or situation should any Nigerian be homeless or be denied a decent and affordable home.
