Shelter to Man is more of a necessity than just luxury. It remains a primary need of Man after food and clothing.
Nigeria a key regional player in West Africa, accounts for about half of West Africa’s population with approximately 202 million people and one of the largest populations of youth in the world. With an abundance of natural resources, it is Africa’s biggest oil exporter, and has the largest natural gas reserves on the continent.
But sadly, 40 percent of Nigerians (83 million people) live below the poverty line, while another 25 percent (53 million) are vulnerable. While the economic impact hinges largely on oil prices, oil accounts for over 80 percent of exports, a third of banking sector credit, and half of government revenues. Oil prices also affect growth in non-oil industries and services, with additional pressures arising from foreign portfolio investors’ reassessment of risks and domestic liquidity management.
The macroeconomic situation becomes more challenging now than in 2015-2016, when oil prices fell sharply and Nigeria experienced its first recession in 25 years. In the current situation, Nigeria has fewer buffers and policy instruments to cushion adverse effects. The Excess Crude Account is depleted, external reserves are highly reliant on short-term flows, and policy uncertainty affects investor confidence. According to world bank assessment, before the 2016 recession, Nigeria’s economy was growing fast at 6.3%. By contrast, before COVID-19 struck, the economy was growing at 2.2%. Inflation was in single digits in 2014, compared to about 12% in 2019. The general government fiscal deficit was 4.4% of GDP in 2019, compared to 1.8% in 2014.
Unemployment and underemployment are on the increase, and is grossly affecting poor households and increasing the share of the population vulnerable to falling into poverty. Only agriculture is expected to positively contribute to growth in the near future.
The prevailing inequality, in terms of income and opportunities, remains high and has adversely affected poverty reduction. The lack of job opportunities is at the core of the high poverty levels, regional inequality, and social and political unrest.
From the foregoings, the giant of Africa continue to face massive developmental challenges, including the need to reduce the dependency on oil and diversify the economy, address insufficient infrastructure, build strong and effective institutions, as well as address governance issues and public financial management systems. These pre-existing structural challenges have left the Nigerian economy especially vulnerable.
Therefore, with the current social and economic reality staring every average Nigerian on face, and the financially hectic demands of acquiring a decent home even in the remotest location in Nigeria which account for why millions of people are pepetually habiting in slums, makeshifts, under bridges and some even subjected to itinarant dwellers at our city centers, what hope is there for Homeownership for an average Nigerian even in a Long run projection?
