Nigeria’s universities are grappling with a severe accommodation crisis, with thousands of students left to fend for themselves in a harsh rental market.
A new lifeline to bridge the hotel gap is emerging in Public-Private Partnerships (PPPs). The model, once viewed with caution in the education sector, is now emerging as a pragmatic solution to chronic accommodation shortages across campuses.
At the forefront of this shift is the University of Lagos (UNILAG), with an ambitious 7,836-bed PPP hostel initiative.
Read also:Â Sunbeth signs MoUs with top universities to expand agro-commodity careers
The project, being driven by a PPP and Build-Operate-Transfer (BOT) model, involves private developers such as CMF Gardens Housing Limited, Advent Integrated Services Limited, Paradigm Hostels Limited, and Diamantaire Limited and the institution.
The project is not just about bed spaces; it is a bold test case for sustainability, accountability, and shared value in Nigeria’s higher education system.
Imaenyin Usoro, a professional realtor with BRG Billionaires Realtors Group, describes the PPP initiative as a commendable approach to addressing infrastructural gaps in tertiary institutions.
“If we keep waiting for the government to provide enough facilities, it will be waiting till eternity,” he said. “Tapping developers’ funds will help universities deliver their projects in record time,” he added.
Apart from the University of Lagos, the University of Ibadan, the University of Ilorin, the University of Abuja, and the University of Jos, among other institutions, are also partnering with the private sector to provide hotels for students.
Ike Chilaka-Osuagwu, chief executive officer of Antwork Services Limited, emphasised that such partnerships is geared towards economic development while addressing students hotel challenges.
“In tertiary institutions overseas, captains of industry and organisations help develop infrastructures in the universities,” he said.
Affordability a major concern
Experts say the model is delivering quality housing for students, but stressed that it is way too expensive for them.
Kunle Awobodu, a builder, emphasised that hostels developed via a PPP initiative are more expensive when compared to the ones built with public funds, stressing that many developers have eyes for quick recouping the money invested.
This, he said, is because the developers want to recoup their money within a short time, which is not ideal for an investment.
For instance, fees for public-built hostels at the University of Lagos go for about N80,000, at the Obafemi Awolowo University, Ile-Ife, hostel fees are between N50,000 to N60,000, while at the University of Ibadan, a bed space goes for N60,000.
Nevertheless, when compared to privately built hostels, the cost difference is huge. For instance, the 484-bed-space hostel built by Femi Gbajabiamila, the chief of staff to the president, in his effort to alleviate the UNILAG’s on-campus bed space crisis, costs over N700,000 per bed space.
However, Ibrahim Kudus, a student at UNILAG, told BusinessDay that though the cost of the new accommodation by Gbajabiamila is very high, students are willing to pay because it gives them the ideal learning environment.
According to Stanley Boroh, a lecturer at Federal University, Otuoke in Bayelsa State, “Accommodation is a major challenge in the university and that is because most universities cannot provide bed spaces for all the students based on the population.”
Experts believe the on-campus accommodation crisis offers begging opportunities for individuals and corporate organisations to invest in.
Mordecai Ezeh, a developer based in Owerri, sees the on-campus accommodation business as a worthwhile long-term investment that universities and the private sectors should maximize, but bear in mind that it is a long-term investment; hence, it must come at an affordable cost.
Read also:Â African Development Bank solar push powers Nigerian universities off the grid
“If developers and institutions get their acts right with a good understanding of how the housing business works in the academic ecosystem, it is a worthwhile venture.
“There must be in place flexible payment options designed to ensure smooth operation of the system, such as outright, weekly, or monthly payment,” he said.
Lessons from other African universities
Institutions such as the Kenyatta University, Kenya, Kumasi Technical University, Ghana, and the Université Privée de Marrakech (UPM), Morocco, among others, have leveraged private investment for campus expansion, advanced research hubs, and boost facilities.
The Kenyatta University partnered with Integras, a New York-based private equity firm, to build 10,000-bed space hostels worth $11 million under a public-private partnership.
In Ghana, Kumasi Technical University (KsTU) partnered with GEOFRA Construction Works Limited to provide bed spaces for students.
This approach leverages private investment to provide quality student accommodation, focusing on improved performance, cost reduction, and enhanced service delivery.
