Housing Stakeholder’s Forum

A national stakeholders’ conference was organised by Real Estate Developers Association of Nigeria (REDAN) with the support of Federal Ministry of Works, Housing and Urban Development in the second week of November 9, 2009. Great resolutions were reached and these are supposed to be conveyed in a communiqué to the appropriate authority.

Honestly we have had forum after forum on this and similar topics in the past with great communiqués but necessary follow through has been lacking. I only hope that same will not be the case about this recent event. That said, to my mind I believe we came up with some germane issues and solutions. For example, the question of whether housing should be an entirely PPP issue was thoroughly discussed.  Also, questions whether the banks are doing well or enough as regards project financing and other concerns relating to foreclosure and our titling were brought to the fore.

Below are some of the recommendations made by the Committee on Finance For Housing Development in which I participated:

• When it comes to project financing, the projects being financed should serve as collateral
• We need to look critically at creating construction loan as well as mortgage loans.
• Banks should not be allowed to own construction companies so that they can focus on creating loans and mortgages needed to drive the sector and not constitute themselves into unnecessary competition.
• Pension fund custodians should be allowed to invest a healthy percentage of their fund in mortgage creation. 
• Encourage entities like REDAN to sponsor/promote Mortgage Banks, Construction Banks, REIT Companies
• A NAREIT (National Association of Real Estate Investment Trust) should be formed to serve as a pressure group for the purpose of promoting and establishment of REIT in Nigeria

These few are the ones my space can allow for here, expect to hear more update on the conference later. I just hope and pray that the bill to reform the Land Use Act that was said to have passed first and second reading of both houses should speedily go through the 36 states of the federation so it can be concluded in good time.

That is one agenda the current administration will never be forgotten for if concluded  during their term apart from solving the power(electricity) crisis.

To your success!