HORRIBLE NIGERIA: THE TALE OF HOUSING AND THE LACE OF CORRUPTION! By KEMKA S. IBEJI
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| King David Estate Abuja Site |
Recently I have wondered why it is very difficult for the poor to have a decent shelter over him or her in Nigeria. This keeps coming to me like a begging question and more with such unavoidable fuss. Why is housing a big challenge in Nigeria despite all the gracious policies and programs by the governments?
Here in Nigeria we have Federal Mortgage Bank of Nigeria (FMBN), Federal Staff Loans Board, National Housing Fund (NHF), Accelerated Mass Housing Development Scheme, Primary Mortgage Institutions (PMIs), Mortgage Refinancing Institution (MRI) and lots more. Even with all these, Nigeria runs huge housing deficit in expanding habit. So instead of things getting better with the policies we are seeing things getting worse.
It simply means that there is something wrong somewhere. But this is not far fetched.
Corruption!
It is for this particular reason that we worked hard to enthrone President Muhammadu Buhari should has placed himself almost like an effigy of war against corruption. However, it seems nothing much has happened with him at the helm of affairs in Nigeria. This is especially with reference to housing issues.
The interconnectivity of FMBN, PMIs and the NHF is such that needs thorough vetting and auditing. It also needs proper probing and sincere review.
The Federal Mortgage Bank of Nigeria (FMBN) warehouses the funds got from National Housing Fund (NHF). In Nigeria, civil servants, public servants, private sector workers and the labour make monthly contributions to the National Housing Fund (NHF). Many a time, these contributors are unaware of what deductions from their salaries are for. This alone would amounted to criminal or fraudulent activity in other climes but not here in Nigeria. Why won't contributors to NHF know the reason for the deductions on their salaries?
The reason for keeping the contributors in the dark is very clear - corruption! At least the public criminals can deal undisturbed. Hurray!
And the governments have nothing to say about all this. What else do we expect? The need to be in leadership here is usually negatively pecuniary and most times to swindle the commonwealth.
The National Housing Fund is received by Federal Mortgage Bank of Nigeria (FMBN). Through National Housing Insurance Scheme (NHIS), it is expected that the Primary Mortgage Institutions (PMIs) should receive certain percentage of intended housing product cost from the contributors who want to own homes and then go ahead to process acquisition of entire funding from the FMBN. The interest rate of funds from FMBN for housing acquisition is about 3 to 4% per annum while the PMIs mark up about 2% per annum for the credit management. In all, financing housing acquisition from FMBN through PMIs would amount to interest rate of about 6% maximally. And the tenor of FMBN housing loans can be as long as 30 (thirty) years.
One could glean that Nigeria ought to have been free from housing deficit by now counting how many years down the line we have operated on these schemes. But why?
The PMIs, the FMBN and all in the value chain are big fat fraud. The monies gathered under NHF in FMBN over the years should be in trillions if not more. But can we point at any housing delivery funded by FMBN and the PMIs? Let's not go into the tacky and irresponsible relationships between the FMBN and PMIs in trying to get out contributors' funds for the purposes they were deducted. It smells!
On Accelerated Mass Housing Scheme, the FCT Abuja had this policy to enable access to land acquisition by real estate developers. This is a commendable policy as it were by the government knowing the difficulty in land acquisition processes as experienced by real estate investors and developers. This policy was to allow government acquire and transfer lands to real estate developers almost free of charge. When this is done, the developers thereafter sort for funds to develop houses. Imagine a developer having land free from government and building for the citizens? You will agree with me that the cost of houses will be briefly in the neighborhood of the cost of construction. The price of houses would have indeed been quite affordable.
But please do not ask me what has happened with Accelerated Mass Housing Scheme in Abuja. Crime and exalted corruption has taken over! Politicians, Ministers, their cronies and their wives and children have all become land allottees in Abuja. Lands meant for real estate developers are now allocated to these folks who in turn flood the market with hiked, skyrocketed and estimated prices for those lands. They sell to the developers at cut throat prices. Now in capitalism you know what next to happen. Of course, the cost will be transferred to the end users or consumers.
If a developer pays through his nose to purchase lands that were supposed to be allocated free to them, goes to fetch funds at exorbitant cost, then builds in such conditions, one would not need to ask again why housing in Nigeria is where it is is today. This might last even longer for years to come.
Can you now assume where the FMBN, NHIS and PMIs are working and the Mass Housing Scheme as well is working? You would not need an expert to know that no child of adult age in Nigeria working will be without owning the roof over him or her. Needless talking about the Federal Staff Loans Board!
The questions now are;
1. What is happening with FMBN?
2. Where are the trillions amassed by NHF?
3. What are the PMIs doing in the National Housing subsector of the economy?
4. What is the situation with Federal Staff Loans Board and how are their many staff being paid their salaries? And who pays them?
5. What is going on with the Accelerated Mass Housing Scheme?
6. Why are the developers starved their policy desert?
7. Is NHIS still operational in Nigeria?
8. Etc
As soon as these questions have been adduced answers, our housing problems in Nigeria would have been half solved.
By KEMKA S. IBEJI
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