A Real Estate Economist, Mr Benjamin Onigbinde, has disclosed that ineffective policy implementation is the primary obstacle hindering the growth of Nigeria’s housing sector.
Speaking to NewsNGR on Monday, Onigbinde noted that despite 64 years of independence, the sector’s progress remains unsatisfactory, with a staggering housing deficit estimated at over 20 million units.
Onigbinde, who is the Chief Executive Officer of Sigvent Property Trust Limited, said the challenges facing the housing market are multifaceted, stemming from a growing population and inadequate building capacity within the economy.
He urged the need for a sustainable implementation strategy that aligns policies across all levels of government to address the urgent housing crisis.
Onigbinde also called for immediate action to bridge the gap in the housing sector.
“At 64, Nigeria’s housing sector has not been impressive, with an estimated above 20 million housing deficits. This could be a result of the multifaceted problems including an increasing gap in population and building capacity of the economy.
“The missing link in our development journey is basically in implementing policies. It’s important to note that Nigeria is always not short of ideas which have resulted in policy documents and committees, however, we always fail in the implementation of such policies.
“Nigeria has a huge potential to solve its housing problem in human resources and technology. There’s however the need for an urgent but sustainable implementation strategy including alignment of policies across all levels of government,’’ he said.
This is just as a former General Manager of Corporate Communications at the Abuja Electricity Distribution Company (AEDC), Barrister Bode Fadipe, has disclosed that despite the privatization of the power sector, the sector is still battling with a mirage of challenges 64 years after the country’s independence.
NewsNGR reports that the country attained its independence on October 1st, 1960, hence it is 64 years today as a nation. Also, it privatized its electricity sector in 2013, making it 11 years this year that the sector has been privatised.
He identified several systemic issues, including policy inconsistencies, a lack of political will, and instances of malfeasance, which have hindered the sector’s growth.
Fadipe, who is the CEO of Sage Consulting Communications, in an exclusive chat with NewsNGR on Monday, pointed to infrastructure deficits as one of the primary obstacles facing the sector.
He expressed concerns about the limited progress made since the 2013 privatisation, stating that most of the facilities sold during this process were built between 1960 and the privatisation date.
He said: “The Nigerian power sector in the last 64 years is a bag of mixed feelings. Most of the power facilities that were sold as assets to preferred bidders during the privatisation were the ones that were constructed between 1960 and the privatisation time.
“The progress that we have had since 2013 when the privatisation was effected is rather too small for the resources that we have invested in the sector whether in terms of finance or manpower usage and wastage, if you like.
“In terms of the missing link, we have had the challenge of policy inconsistency, policy somersault, lack of political will, allowing personal interest to override national interest, malfeasance.”
Fadipe, however, criticized the slow pace of development relative to the substantial investments made in the sector, which he claimed has attracted significant funding from sources like the World Bank and the African Development Bank.
He stressed the importance of allowing skilled and selfless individuals to manage the sector to unlock its potential.
Despite these challenges, he praised the privatisation of the power sector, which took place 11 years ago, as a positive step that has allowed for greater participation from state governments.
He emphasized that the privatisation process and the democratisation of the market have enabled various states, including Enugu, Ogun, Oyo, Osun, and Lagos, to enter the power market.
“Perhaps the greatest achievements of the sector are the privatisation of the sector and the democratisation of the market such that states can now participate in the market. We have seen a lot of states entering the Market as participants.
“This is a positive development as it is expected that in the coming years, the Market will experience a shift along the positive line as a result of the entrance of the State.
“Currently, states like Enugu, Ogun, Oyo, Osun, Lagos, and a couple of others have received the nod from NERC. This is without prejudice to the challenges that privatisation has thrown up in the last 10 years and will continue to throw up as we grow the Market.
“Unfortunately, that is about the only area – viz legislative instruments where we seem to have made the biggest progress. Apart from security and perhaps the oil & gas sector, no other sector has attracted as much funding and attention as the power sector.
“The power sector is about the only sector that draws funds from a multiplicity of sources – World Bank, AFDB, local funding, and multilateral institutions.
“What should we do to harness our potential as regards the power sector? Allow those who have the expertise, the political will, and the selflessness/national interest to run the sector. Unless this sector works, this economy is not likely to get off the ground”, Fadipe said.