1.1 BACKGROUND TO THE STUDY
Housing has been universally recognized as one of the most
essential necessities of human life and is a major economic asset in
every nation. Adequate housing provides the foundation for stable
communities and social inclusion (Oladapo, 2006). Gilbertson et al.
(2008) have observed that there is a significant association between
housing conditions and physical and mental health of an individual.
People’s right to shelter is thus a basic one and the provision of
decent housing to all requiring them should be the hallmark of every
civilized society and one of the criteria for gauging development.
However, the provision of adequate housing in Nigeria and other
developing nations alike still remains one of the most intractable
challenges facing human and national development. Previous attempts by
all stakeholders, including government agencies, planners and
developers to provide necessary recipe for solving the housing problem
have yielded little or no success.
Propelled by the patriotic quest of addressing Nigeria’s acute
housing problem, the Federal Government came up with a National Policy
on Housing and Urban Development in 2002. The policy has since then
triggered milestone reforms in the nation’s housing industry aimed at
repositioning it for efficient and effective housing delivery and
maintenance. One of the means through which the policy is been achieved
is on public-private partnership concept. The thrust of the policy is
to raise the home ownership rate among Nigerians to a respectable level
by moving the housing industry to sustainably deliver mass, decent and
affordable housing with the active participation of the private
sector-driven mortgage based housing delivery and maintenance system
(Oduwaye, 2004). The policy believes that this will particularly
address the housing problem of most Nigerian citizens.
The concept of private partnership in housing financing, delivery
and maintenance system is predicated on the pooling together of
resources from the various stakeholders, each party making inputs,
thereby minimizing wastage and maximizing results achieved. Ikekpeazu
(2004) stressed that the expediency of the increased adoption of the
public-private partnership for housing financing and delivery in the
present socio-economic circumstances of shortage of housing in Nigeria
is now even more glaring than ever. With the increasing demand of the
population on the national economy and the government’s propensity for
enlarging the multi-sectorial allocations in terms of finance, it is
becoming obvious that government alone can no longer provide adequate
housing for all categories of her citizens particularly the low income
The organized private sector comprise of members of the real
estate developers association of Nigeria and some commercial banks that
have real estate departments. Average citizens including the
low-income earners do not easily have access to housing finance because
of their low wages. Nigeria is a country with high unequal income
distribution, a situation that restricts the reach of the vast majority
in the acquisitionof quality housing. This study examines the role of
public-private partnership in housing finance, delivery and maintenance
The public-private partnership for housing delivery under
Nigeria’s current housing policy (Abdulsalam, 2008) confers certain
identifiable roles on both the public and the private sector. The roles
of the private sector in housing financing, delivery and maintenance
with particular reference to private partnership includes responsible
for production of physical houses, responsible for primary mortgage
lending, required to invest mortgage securities and responsible for the
production and supply of building materials, particularly local
1.2 STATEMENT OF THE PROBLEM
Housing finance constitutes one of the major pillars of housing
delivery and maintenance system. Indeed, without a well-organized and
efficient housing finance mechanism, the goal of a housing development
and maintenance policy will be largely unattainable. Housing finance
has been recognised as an important, almost indispensable factor in the
housing delivery and maintenance system. This is because only the very
few in any nation can afford to pay cash for a house or pay cash for a
major renovation of the house. Most other people must have to finance
their house building and maintenance through loans, personal savings,
assistance from relatives or friends and gifts. Introduction of
public-private partnership in housing delivery and maintenance is to
enhance the productivity of the housing sector, increase housing
affordability and improve access to basic infrastructure and social
services. Ikekpeazu (2004) stressed that in order to attain the desired
outcome for private partnership, the perception of the housing sector
as a vast arena of social problems and a drain on the economy must
change. Housing must be seen as an important economic sector with
crucial linkages to the overall economy of a nation. The housing sector
is a key component of the economy. It is typically the largest single
form of fixed capital investment, in most economics. Based on these
facts, the researcher seeks to examine the role of private partnership
in house finance, delivery and maintenance in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the role of private partnership in house finance, delivery and maintenance in Nigeria.
- To ascertain the level of investment in housing delivery and maintenance in Nigeria.
- To identify the problems of housing finance, delivery and maintenance in Nigeria.
1.4 RESEARCH QUESTIONS
- What is the role of private partnership in house finance, delivery and maintenance in Nigeria?
- What is the level of investment in housing delivery and maintenance in Nigeria?
- What are the problems of housing finance, delivery and maintenance in Nigeria?
HO: Private partnership has not contributed to housing finance, delivery and maintenance in Nigeria.
HA: Private partnership has contributed to housing finance, delivery and maintenance in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
- The results of this study will educate the general public on
the role of public private partnership and how it can be used as the
instrument of development in housing finance, delivery and maintenance.
- The findings will sensitize the stakeholders in building
construction and real estate management on the need for effective
collaboration with the private sector to ensure speedy financing and
delivery of housing units all over the country noting that private
partnership has facilitated development in housing delivery and
maintenance in other advanced countries of the world.
- This research will also serve as a resource base to other
scholars and researchers interested in carrying out further research in
this field subsequently, if applied will go to an extent to provide
new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on the role of private partnership in housing finance,
delivery and maintenance in Nigeria will cover the involvement of
private sector in the provision and maintenance of housing units with
focus on the existing housing structure and management in Nigeria.
LIMITATION OF STUDY
- Financial constraint- Insufficient fund
tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of
data collection (internet, questionnaire and interview).
- Time constraint- The researcher will
simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.
Abdulsalam, A. (2008): Public-Private Partnership in Housing
Finance at a seminar organised by the Nigerian Institute of Estate
Surveyors and Valuers (Ondo State Branch), held on the 13th of
November, 2008, at Owena-Nicon Luxury Hotels, Akure.
Ikekpeazu, F. (2004): New Trends in Low-cost Housing delivery
systems in Nigeria: An Overview of the public-private partnership
approach. Housing Today, 1 (8), 30 – 36.
Oduwaye, L. (2004): Problems and Prospects of Primary Mortgage
Institutions (PMIs) in Nigeria: Case of selected PMIs in Lagos. Housing
Today, 1 (8) 14-18.
Oladapo, B. O. (2006): Mortgage Financing In Nigeria: Issues And
Challenges, a paper presented at the 9th John Wood Ekpenyong Memorial
Lecture, organised by the Nigerian Institute of Estate Surveyors and
Valuers, January 29, 2003.