The presidential candidate of the All Progressives Congress (APC), Bola Tinubu has revealed plans to fix the nation’s housing deficit which currently stands at 22 million housing units, according to a World Bank report.
Tinubu’s plan is contained in the party’s action plan for a new Nigeria titled “APC’s Renewed Hope 2023’.
According to Bola Tinubu, this new entity will inherit the functions of existing housing authorities and shall be adequately capitalised by the federal government.
On mortgage and consumer credit reform, Tinubu said the various federal agencies meant to promote home ownership are too small and fragmented.
He said to address the housing deficit, he would ensure greater cohesion and efficiency by merging these agencies into a new, more competent body.
“This new entity will inherit the functions of existing housing authorities and shall be adequately capitalised by the federal government,” he said.
The agency, according to the manifesto, will have a three-fold mandate: grant low interest rate mortgages directly, guarantee qualified mortgages issued by banks, and purchase mortgages from private banks.
“The guaranteeing and purchasing of mortgages will incentivise banks towards mortgage lending and will deepen the secondary mortgage market.”
The document said banks would also be encouraged to engage much more in the provision of affordable consumer loans for automobiles and expensive domestic appliances.
“A certain portion of bank lending must be earmarked for the consumer. All non- compliant banks will pay a penalty to the government. Compliant banks will be entitled to tax breaks and credits as well as favourable treatment by the CBN regarding inter-bank transactions and other monetary policy ratios,” it said.
The manifesto described home ownership as a source of prosperity, social stability and individual pride, adding: “A vibrant residential construction industry is essential to a healthy modern economy.”
It said in conjunction with the National Assembly and state governments, the Land Use Act would be reviewed and revised.
The document said: “We need to streamline and rationalise the land conveyance process. In this way, we lower costs and delays and promote more efficient use of land. This more efficient allocation will bolster the housing industry and lower costs for investors and consumers.
“Working with state governments, we will provide credits and incentives to developers of housing projects that set aside a significant portion of their projects to affordable housing.”
It added: “With the support of state and local governments, we aim to establish and implement a new social housing policy whose objective shall be to provide pathways for the poorest Nigerians to climb onto the housing ladder.
“We will establish a coherent federal programme to provide eligible and meritorious civil servants with federal payment guarantees for fixed-rate, long-term mortgages for their homes.”