Emmanuel Excel Ogbeide is the founder and chairman of the Low Cost Housing Developers Association (LCHDA) of Nigeria, a non-governmental organisation advocating for and championing sustainable and affordable housing solutions to bridge the nation’s housing deficits. In this interview with IDRIS UMAR MOMOH, Ogbeide spoke on plans by the organisation for the realisation of its aims and objectives in helping to reduce the nation’s housing deficits from about 28 million by contributing an average of 5 million in five years and 10 million in 10 years. Excerpts:
What makes the Low Cost Housing Developers Association of Nigeria (LCHDA) different from other NGOs in the country?
Low Cost Housing Developers Association of Nigeria is an affordable housing solution provider. We are pioneering an industry called the Affordable Housing Industry in Nigeria because houses are not affordable.
For example if you live in big cities like Lagos, Abuja and others you will understand that actually housing is not affordable. People are being pushed to the outskirts of the cities. As it is in Lagos, Abuja, Port Harcourt so it is across other states in the country. We are trying to see how possible we can collaborate, pull resources and professionals together under one umbrella body to ensure that we are able to bring expertise and technology together to reduce the overall cost of construction and acquisition of houses in the country. We found out that housing support institutions like Mortgage and others are a bit on the high side. We believe that mortgages should be accessible , affordable and equitable. But we also found out that there is so much politics in the housing industry. So, most of the things we do are almost advocacy and educating people.
There are several commercial estate developers in Edo. Are there any plans to partner them in the quest of making housing affordable for the masses irrespective of economic status and to also reduce housing deficit in the country?
These people you talked about most of them are commercial realtors and estate developers. We are ready to work with them, but we realized that some of them are just to make money. I am not saying they shouldn’t make money. We are an NGO, that is the difference but we do everything they do. We are an umbrella body for them. We provide training and partnership for them. We have a lot of networking opportunities for them. Our partners work in various governments and housing supporting institutions even here in Nigeria. We have the mortgage banks, as well as partners institutions from outside the country. These are the people that have the knowledge, the skills and the technology to reduce housing construction cost. For example, we are wasting resources in the ways we build houses in Nigeria and other African countries. The thickness of houses in Nigeria, the cost is enough to build several affordable housing units. LCHDA’s major priority is to reduce waste to the barest minimum.
The average commercial realtors or developers are out there to make money from building and renting which is good, but they need further training. We will provide them with the requisite training from time to time and networking opportunities. We are going to give them everything they need to be successful in their businesses.
We represent their interests before the governments, we fight for them, we protect, educate and defend them and we speak for them when it matters, that is where advocacy comes in. There had been other associations who didn’t provide them anything. Some of those associations have been existing since the 50s. They are only collecting dues from them thereby leaving the real estate sector in the hands of people who are not trained and qualified.
If you go to our various courts in the country today you will be surprised by the number of cases between Realtors and their clients, communities and all those who are not satisfied with each other in the bargain. To ensure that litigations are reduced in the sector we came out with dispute resolution mechanism centres, where we help the aggrieved to settle their differences and disputes that they may have with their clients. That has helped to save millions of naira from legal battles.
You said Nigeria has about 28 million housing deficits. How do you intend to help reduce the deficits with partnership with stakeholders in the sector?
Nigeria faces a huge housing deficit, a critical impediment to national development and social welfare. Current estimates place the deficit between 24 to 28 million housing units, with an annual growth of approximately 900,000 units to keep pace with rapid urbanization and population growth. This shortfall disproportionately affects low and middle-income earners, exacerbating urban slums, overcrowding, and socioeconomic inequality. Addressing this challenge requires a multi-faceted, collaborative approach between the private sector and all tiers of government. This deficit is a crisis nobody wants to talk about. I want to tell you that most houses built in choice places in cities like Lagos, Abuja and other parts of the country are not houses. They are just luxury things that are not met for people. Most of those houses are vacant. They are not affordable because people cannot afford them. The Low Cost Housing Developers Association, through its robust collaborative model, intends to directly contribute 5 million houses in 5 years and 10 million houses in 10 years to the national economy. This initiative will do more than just putting roofs over our heads, but will function as a powerful engine for macroeconomic growth, job creation, and social stability, effectively turning a critical national challenge into a historic economic opportunity.
The government is doing a lot through the Federal Housing Mortgage Bank. Is making housing affordable by giving loans to people to buy houses . As a Nigerian everybody has a right to buy a house through the Federal Mortgage provisions but several people don’t know about this.
Through the World Bank, Federal Mortgage Bank, Federal Ministry of Housing among others the Federal Government is doing a lot in terms of affordable housing. In the housing sector information and education are key. These are things we are trying to do through our various programmes, conferences and media publications.
The few people that know of these channels of getting affordable houses are hoarding this information.
What is the organisation doing differently to realise its objectives?
The Low Cost Housing Developers Association offers a structured, professional, and sustainable partnership model. By leveraging our members’ expertise and aligning with government priorities at all levels, we can transform the housing landscape. We are open to high-level networking to discuss the implementation of this framework with the relevant stakeholders and achieve the critical vision of providing affordable, dignified housing for all.
We are advocating for the dedicated allocation of titled land for large-scale, low-cost housing projects through transparent and expedited processes. This includes the adoption of Land Use Reforms such as digital land registries by implementing a computerized, transparent system to reduce bureaucracy and curb corrupt practices.
You can’t achieve these alone sir, what are the plans for partnership with other stakeholders in the sector?
We are poised to be a pivotal partner in this endeavour. We are proposing the following sustainable framework for partnership with Local, State, and Federal Governments to systematically close the housing gap. Our proposed collaboration is built on four foundational pillars, each essential for creating a viable and scalable housing ecosystem.
On the rules and regulations we intend to adopt laws that protect lenders and attract private finance into the housing sector. We are also calling for the creation of a “One-Stop Shop” or fast-track desk for affordable housing projects to reduce approval timelines from year to month.
As part of the partnership we noted that funding is the lifeblood of housing development. We propose collaborative financial models to include government funding and Guarantees. We advocate for the Federal Government to capitalize and empower existing Housing Support Institutions like the Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Mortgage Refinance Company (NMRC). This includes providing sovereign guarantees to de-risk projects for private investors.
Under the blended finance models, we have structured partnerships where the government can provide land and off-site infrastructure (roads, water, electricity), while the LCHA mobilizes private capital and technical expertise for construction.
Others include foreign Partnership and Investment to actively facilitate introductions between government and reputable foreign investors (e.g.Developmental Financial Institutions – DFIs, private equity firms) seeking impact investment opportunities in African housing.
We know that the governments are doing enough in the areas of housing associations but they have to do much more.
What are the benefits the potential beneficiaries are expecting in the low cost houses that are different from what they currently have from their various houses if at all there is anything?
We provide prefabricated houses or construction. Some of these fabrications are being done in a factory. The whole house is being built in a factory and they bring it to the site and within three days it is assembled. This will save cost, delays and environmental hazards among others. We also have Modular houses or construction which is prefabricated. These are technologies deployed. These are ways of building differently from the conventional and old ways of doing it. It is an improved version where we can construct better quality, look like the conventional building and reduce 40 percent of the cost.
In some parts of the world cement is not being used to develop buildings anymore. There are other raw materials that can be sourced locally in our various communities and states. From our sand you make bricks. All these are attempts to reduce the cost of building in the country. Prefabricated houses do not compromise standards and quality .LCDHA adheres to all buildings rules and regulations.
But I must tell you for us to achieve affordable housing all hands must be on deck and all your building materials must not be imported. There should be room for locally sourced materials. Locally sourced materials are not in any way inferior.
Our sands are some of the best in this part of the country.If 40 and 50 percent of our materials are locally sourced, the exchange rate will not inflate the overall cost of our building. When we also source materials locally this will help us to achieve the same aims and objectives of getting affordable housing and low cost housing reachable to our people.
What is your message to the governments, stakeholders for the success and the realization of the objectives of the association in the provision of low cost affordable housing to citizens?
My message to the governments is to ensure that all that has to be done in the housing sector should be supported. The 28 million housing deficits or shortage is a national crisis. Governments should wake up to its responsibilities and be willing to release lands, process land documents faster than they are currently doing. All these can be done online and fast tracked on time. The delays in governments’ bureaucracies are too much. Governments should also make information and funding available.
It should also find ways of assisting the informal sector, the artisans in the construction industry and make sure that they are being properly educated and financed.
Most of the construction in the housing sector is being done by quacks. The actions of these people are one of the major causes of the high rate of houses and buildings collapsing in the country.
For example in Germany if you build a house as a developer you should give a 100 year guarantee, and if anything happens and the house crumbles before the time you will be jailed and your company shut down for existing.
We have these penalties here in Nigeria including the building codes. The government should ensure that these penalties are implemented and well enforced.
Any improperly built house is a grave yard and a deathtrap. Governments should ensure that they do their part, and not just only regulations but in advocacy, funding, financing, training and in partnership.
The Public Private Partnership (PPP) is the way to go, and the governments should be willing to work with the developers, make land available under good terms and conditions and be open to foreign direct investors by making security very stable in Nigeria.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
