Firm advocates PPP to bridge housing deficit

A real estate firm in Nigeria, Terra Developers Limited, has appealed to the government and stakeholders with the public and private sectors on the need to establish a working partnership on low-cost housing for all Nigerians.

The Managing Director of Terra Developers Limited, Kola Ashiru-Balogun, made this appeal at a press conference in Lagos on Monday.

Balogun expressed concern that Nigeria’s housing crisis has persisted for years, with the Federal Mortgage Bank reporting a shortage of over 22 million homes. 

He noted that population growth and urbanization, combined with the lack of low-cost housing and government policies, have contributed to this shortage. 

He emphasized that Lagos state alone has a deficit of 3.2 million homes, with the government providing only 10,000 homes annually, barely scratching the surface of the housing problem.

Balogun, however, expressed optimism about the involvement of the private sector in the real estate industry. 

He said the government cannot solve the housing problem alone, adding the involvement of private enterprises, financial institutions, and real estate developers is necessary to combat the housing deficit. 

He also noted that affordable access to credit is critical, saying relevant institutions and stakeholders must participate to reduce the housing deficit.

According to Ashiru-Balogun, the private sector cannot operate in an unregulated environment, especially in the Nigerian real estate sector, where fraud and substandard materials use is prevalent. 

He emphasized that government regulation can address these issues and promote the ease of doing business in the real estate industry.

Balogun said, “Terra Developers Limited is committed to working with the government and other stakeholders to provide low-cost housing solutions and alleviate the housing deficit in Nigeria. 

“The company is collaborating with relevant organizations and financial institutions to provide affordable homeownership and rental schemes to mitigate the deficit.

“Additionally, the company aims to address the problem of home financing for Nigeria’s middle class by creating affordable housing for those earning less. This initiative will help to alleviate the problem of the housing deficit by ensuring that middle and low-income earners can access quality and affordable housing,”

Balogun further stated that the housing crisis in Nigeria requires the involvement of both the public and private sectors. 

He noted that, while the government must continue to create an enabling environment for real estate developers and other stakeholders to operate, the private sector must also operate within a regulated environment that promotes transparency and accountability. 

“Terra Developers is playing a vital role in addressing the housing deficit in Nigeria, and the company’s commitment to working with the government and other stakeholders is a step in the right direction towards achieving affordable housing for all Nigerians,” he said.