Project Topics

DELIVERY OF LOW INCOME HOUSING IN NIGERIA PROSPECTS AND CHALLENGES

DELIVERY OF LOW
INCOME HOUSING IN NIGERIA

PROSPECTS AND
CHALLENGES

ABSTRACT

The
research is an assessment of the delivery of low income housing in Nigeria, it
analyzes the prospect and challenges of delivery of low income housing in Nigeria
and intends to profer recommendations toward an efficient delivery of low
income housing in Nigeria.

INTRODUCTION

Housing
is paramount to human existence as it ranks among the top three needs of man.
Its provision has always been of great necessity to man.

        As a unit of the environment housing has
profound influence on the health, efficiency, social behaviour, satisfaction
and general welfare of the community. It is a reflection of the cultural,
social and economic values of a society and one of the best historical
evidences of the civilization of a country (Olotuah, 2000).

        The provision of adequate housing in any
country is very vital as housing is a stimulant of the national economy.
Housing is a set of durable assets, which accounts for a high proportion of a
country’s wealth and on which households spend a substantial part of their
income. It is for these reasons that housing has become a regular feature in
economic, social and political debates often with highly charged emotional
contents (Agbola, 1998).

        In Nigeria, like in many other
developing nations of the world housing problems are multi dimensional. The
problems of population explosion, continuous influx of people from the rural to
the urban centres, and the lack of basic infrastructure required for good
standard of living have compounded housing problems over the years. Access to
this basic need by the poor who constitute the largest percentage of the world
population has remained a mirage and it needs to be critically addressed. Ogieto
(1987) has observed that the disparity between the price and quantity of
housing on the one hand, and the number of households and the money available
to them to pay these prices on the other, constitutes the central problem of
housing. The cost at which houses reach the market goes a long way to determine
affordability. Where the unit cost of houses is abnormally high only a few
people are able to afford the houses. According to Okupe and Windapo (2000) the
gap between income and shelter cost in Nigeria is very wide.

This has almost eliminated the low-income earners
from the housing market, The research intends to provide an assessment of  the delivery of low income housing in Nigeria
;its prospect and challenges

CHAPTER 1

1.1      
BACKGROUND
OF THE STUDY

Shortage of adequate housing virtually abounds in
every country, particularly in the developing and third world countries. The
shortage, in both quantitative and qualitative terms, is more acute in the urban
centres. Omojinmi (2000) observed that people that sleep in indecent houses in
urban Nigeria are more than people who sleep in decent houses. Thus, it is
assertive that there is inadequacy in housing to cope with the ever-increasing
population in Nigeria (Arayela, 2003). The causes of this dearth in housing are
numerous.  High construction cost is found to be present in all countries,
albeit in varying degrees of significance (Adedeji, 2007). Afolayan (1987) attributes the high cost of
construction to rising cost of building materials, inflation rate in the
economy, high space and quality standard adopted by designers, professional
fees for housing design and construction, excessive profit of contractors and
10% interest payable on National Housing Fund in Nigeria (NHF).Cases of high
cost of housing compared to the low salaries of civil servants in Nigeria could
be seen in the sale of 2-bedroom bungalows at Otedola Estate in Lagos, which
according to LSG (1999) was the cheapest obtainable and the subsequent sale of
2-bedroom flat at Ikorodu by LSDPC (Lagos State Development and Property
Corporation) at N1.7 Million. The research intends to investigate the delivery
of low income housing in Nigeria ;its challenges and prospect.

1.2      
STATEMENT
OF THE PROBLEM

        The inability of many Nigerian workers
to afford  good housing has grown to a
greater dimension, the implication resulting in low morale and productivity.
However in view of the significance of housing delivery it is pertinent that
the issue of housing delivery be properly addressed. The research intends to investigate
the delivery of low income housing in Nigeria; its prospect and challenges

1.3      
RESEARCH  QUESTIONS

1           
What is the nature of
low income housing delivery in Nigeria

2           
What constitute the
challenges and prospect of low income housing delivery in Nigeria

1.4     
OBJECTIVE OF THE
STUDY

1.     To
appraise the nature of low income housing delivery in Nigeria

2      To
determine the nature of the challenges of low income housing delivery in
Nigeria

3      To
appraise the prospect of low income housing delivery in Nigeria

1.5       
SIGNIFICANCE OF THE
STUDY

The research
shall provide an assessment of the challenges and prospect of low income
housing delivery in Nigeria and shall serve as a veritable source of
information on low income housing delivery.

1.6       
STATEMENT OF
HYPOTHESIS

1           
H0
   The delivery of low income housing in
Nigeria is low

H1
   The delivery of low income housing in
Nigeria is high

2           
H0    The
challenges of low income delivery in Nigeria is high

H1   The
challenges of low income delivery in Nigeria is low

3      H0    The
prospect of low income delivery in Nigeria is  
low

H1   The
prospect of low income delivery in Nigeria is                             high

1.7       
SCOPE OF THE STUDY

The scope of
the study is focused on the  assessment
of the delivery of low income housing in Nigeria .It analyzes the challenges
and prospect of the delivery of low income housing in Nigeria.

1.8       
DEFINITION OF TERMS

NATIONAL
HOUSING FUND DEFINED

The National
Housing Fund (NHF) scheme came into being through an Act of the National
Assembly (Act No.2 of 1992). National Housing Fund provided that 2.5% of the
income of workers be paid to the fund as mandatory savings.

LOW
INCOME EARNERS DEFINED

The
Nigerian National Housing Policy (FGN, 2004) defines the low-income group as
all employees and self-employed persons whose annual income is N100, 000:00 and
below (i.e. the equivalent of salary grade level of 01-06 within the civil
service). Interestingly, the national minimum wage is N44, 000. 00 per annum.
About fifty-seven percent (57%) of the Nigerian population falls below the poverty
line, which is on the average of US$1 per day (Wahab, 2006). In reality, most
employees who work outside the public sector or outside the organized private
sector, as well as many self-employed Nigerians earn well below the national
minimum wage.