REG. NO. 1855.


Housing is one of the 3 most significant in the sustainability of human
existence with considerable economic, social, cultural and personal
importance. The production of housing is has been influenced largely by
policies, innovation and the ability to sustain the environment. Housing
encompasses all social services and utilities that make life meaningful and
the environment habitable. The problems that affect readily housing delivery
in Nigeria are enormous and very complex. These problems in most of our
urban cities in Nigeria encompasses the availability of housing units both in
quality and the number available which in turn has resulted into congested
homes and community and the resultant of this is the ever increasing
pressure on the infrastructural facilities which will rapidly deteriorate. The
situation in the rural area is even worse where the quality of housing is very
poor and very low in quantity. Infrastructure like power, roads, water,
drainage and every other constituent of housing is readily unavailable.

In Nigeria today, over 7 out of every 10 people live below the minimum
poverty level and 9 of every 10 are in the low income group therefore these
people cannot provide housing for themselves; they then are rendered
homeless or live in poor housing. The government had in place various
policies as regarding housing delivery to the public but poor implementation
has made it impossible to meet up with the 12-14 million housing units
needed ( Balogun, 2007 ).


It has been observed that majority of the people are living in poor housing or
totally homeless even in urban center to talk of the rural areas where the
housing there is generally poor and very low in quantity despite all
governmental policies to provide housing to the public.


The aim of this research is to appraise the housing trends in Edo state, its
effects and proffer solutions.


-To identify problem hindering housing delivery-To the different housing
policies analyzed-To itemize the effect of the problems inadequate housing
delivery-To proffer solutions to these problems in Edo State.


The data used for the purpose of this research is gotten from journals, books,
past project works, analytical discussion with estate surveyors and valuer
sand seminar papers.


The limitations encountered while this research was time constraint,
withholding of information for security reasons.



The oxford advanced dictionary defines house as “a building made for people
to live in usually for one family or a family and lodgers {guest}{Hornby et al
1984}. Technically, a house can be defined as a building or structural edifice
comprising of walls with foundation, floors, roofs etc. in which man lives
thereby sheltering himself from the harsh effects of weather, wild animals
and the element. Houses are for different uses but the most common ones

 Residential
 Commercial
 Industrial
 Institutional
 Recreational

A house is basically built on a piece of land commonly known as a plot.
With respect to size of the plot and the planning regulations of the area
the building is located, houses generally have spaces around them and
these spaces include:

Set backs
Space around the building
Parking lot
Flower gardens and

Undeveloped parcels of land .Most of these spaces are usually utilized
as green belts or area flower garden or buffer belts shielding noise
from one house to the other.

The most common type of houses are:

1. Bungalow
2. Storey-houses
3. Block of flats
4. Multi-Storey houses
5. Multi-tenement houses
6. Mud houses
7. Terraced houses.


Housing is a word that is common to many societies but most widely
misunderstood especially its technical definition or meaning. Housing is
therefore viewed not only is a matter of shelter together with its supporting
infrastructures but more comprehensively as an evolutionary
and participating process is a complex system of interactions between
institutions and residents which give shape to human settlements. Breaking
it down Housing comprises more than four walls and a roof, it also includes
supporting infrastructure such as water supply, electric power roads,
shopping facilities, recreational facilities, a good and enabling environment.
Furthermore, institutions such as the housing corporations, mortgage
financial institutions, developers, estate agents, buyers and seller make
up the housing industry. Housing affects all individual in any society including
the homeless and the destitute. Housing can also be described as
accommodation with all the necessary ancillary services with it. IMPORTANCE OF HOUSING

The importance of housing to man can never be over emphasized but a few
of the importance of housing will be discussed under the following headings,

I. Provision of shelter / accommodation:

The provision of shelter goes beyond the provision of a place for man to rest
his head; it goes as far as provision of safety and security from sunshine, rain
and other harsh weather condition. Furthermore, it protects man
wild animals and their attacks.

II. Investment which yields a flow of income:

One of the major reasons why people build houses is to generate income
and even make profit from the house when constructed. As a result of this,
they plunge into construction of houses which are let out to tenants who in
turn pay rents monthly, annually or otherwise as agreed with the landlord.
For example a man who owns a block of ten flats with a monthly rent
of #6,000 monthly per flat, such man will be making precisely
#60,000monthly as rent or #720,000 annually. This is indeed real flow
of income.

III. Source of social prestige:

In some communities in Edo state one of the yardsticks of assessing an
individual’s achievement is whether he has built a house of his own or not.
Any individual who has not attained this status may not be taken serious
within this society of people; this is because anyone who owns a house of his
own is conferred some social prestige to belong to the class of landlords.

IV. Provision of employment:

The construction of a houses provides employment for several categories of
people whether professionals or artisans. Right from the purchase of the
land; the land surveyor is employed to provide the survey plan, then the
architect is employed to design the structure; the town planner approves the
building drawing; the quantity surveyor provides the bill of quantities and
then the builder builds the house. At the completion of the project, the estate
surveyor takes over the building to let it out to the, would be tenants. During
the construction process, artisans like bricklayer, iron benders, carpenter,
plumbers, electrician, etc. are gainfully employed.

V. Provides collateral security for loan:

All around the world one of the lending terms for loan taking in banks is the
provision of collateral security to the loan amount desired. One of the
reasons why the house meets up this security is because it has a high value

whenever it is offered for sale. Also, a house is durable, static, appreciates in
value over time, capable of generating income and always in high demand
,therefore ownership of a house automatically provides the owner a form of
collateral security anytime he desire to apply for a loan.

VI. Durable goods which can be inherited:

A house is a durable good which can last up to 100 years which means that
housing can be transferred from one person to another such as from father
to son as a sort of inheritance.

VII. Housing contributes to a physical development:

The building and their accompanying infrastructure is one single factor that
contributes largely to the development of town and cities. There are no
settlements without houses or buildings. There cannot be meaningful
physical development in any place without the construction of houses and
roads. Apart from the aesthetic of beauty of housing estates, they constitute
a significant percentage of physical development of such cities.


A need is a requirement or something felt to be necessary. It also connotes a
want or lack in which case when there is a need for something, it implies
that, that thing is in lack and therefore wanted. It can also mean something
that is very necessary, very much required in order to fill up some gap or
want. Applying this idea of need to housing, we can explain housing need to
mean the minimum shelter or accommodation required to meet the basic
minimum requirement of a family or an individual. Viewed on a general
sense, housing needs relate to standards of accommodation, deemed
acceptable by society. Housing need is fairly difficult to measure precisely
due to the fact that the range and degree of needs varies considerably.
However, a minimum standard of housing is necessary for a household to
meet its physiological and psychological requirements can be taken as
Housing needs. Many people in Edo state are homeless including destitute
who roam about the street of urban centers and sleep in the markets and fly

over bridges at nights in cities such as Lagos. Such phenomenon readily
exposes the inadequacies of housing accommodation hence, more housing is
needed. It is only a good estimation of housing need in a given society that
can lead to a lasting solution of housing delivery.


A housing market is a market where housing goods and service are sold and
bought by virtue of their being demanded and supplied.

Housing market may not necessarily be public buildings or open spaceslike
common market. Nevertheless, housing markets are dotted allover a nations
landscape. It is like a system or an industry. Those who trade in
thehousing markets knows where and how to locate themselves in order to b
uy and sell housing goods and services. Rapkin etal {1982} described a
housing market area as the physical area in which all dwelling units are
linked together in a chain of
substitution,where each can be considered as a substitute of the other.Thus
by this definition, we can identify several housing markets in Nigeria.


Housing quality describes the state, nature or standard of housing with
respect to acceptable standards. Thus good quality housing implies a level of
housing which has no less than the minimum of factors of which the most
important is income. The level of income is one of crucial factors that
determine the type and quality of housing a household obtains in any given
market. This observation is on the part of the consumer of the housing good
and service sand it is true of the Nigerian housing market which is operated
essentially on the principles of free market enterprise.


Housing finance literally means finance for housing or real estate
development. However, it means more than that, it also means or includes
the source of the finance, the management of the finance and all various
operations on the source, management, procurement and utilization as well
as repayment of such finance. Housing finance equally means the same
thing as mortgage finance except that while housing finance is a general

term en-compassing all the transactions in the housing market, mortgage
finance can be applied to single or individual housing financial transaction. SOURCES OF HOUSING FINANCE

There are two (2) major sources of housing finance which are the public
and private sources. This is shown below in the diagram.

FIG. 1: Illustrating the various types and sub-types of housing
finance sources

Breaking this diagram down there are some housing finance sources that
falls into these groups


(A). Public sources

I. Federal Government Staff Loan Scheme
II. Federal Mortgage Bank
III. Federal Housing Authority
IV. State Government Staff Housing Loan Scheme
V. State Government Housing\ Property Development Corporations
VI. State Governments Home Ownership Companies.
VII. State Government Mortgage Banks
VIII. Local Government Staff Housing Loan Schemeix.National Provident Fun
dx.State Savings and Loan Scheme

(B). private sources

. These can be sub divided into 2 viz private formal and private informal.

1. Private formal sources

 Primary Mortgage Banks
 Commercial Banks
 Merchant Banks
 Development Banks
 Financial and Investment Companies
 Insurance Companies
 Trust Funds
 Co-operative and Thrift societies.

2. Private informal sources

 Esusu system
 Thrift system
 Co-operatives
 Friends. Family\ relatives
 Personal savings
 Money lenders
 Other sources


Housing policy is written document which is usually comprises specific
objectives, strategies and programs aimed at solving the housing problems
or meeting with the ever-increasing housing needs and demands of a
country. {Ezenagu, 1990}Housing policy should contain the government’s
views, policy objectives, strategies and programs all aimed at solving the
housing problems of a particular country. Housing policies usually go
together with housing programs. Housing policies are like principles while
housing programs are like practice. Again, it can said that housing policies
are like theories while programs are like Practical; both of which are aimed at
solving various housing problems bedeviling a particular country or society.
Below is a list of some housing programs initiated in Nigeria at one
time or the other.

1) The public \mass housing programs of the third national development
plan period (1975-1980).
2) The public \mass housing program of the fourth national development
plan period (1985-1985).
3) The public housing program of the Lagos state government during the
defunct second republic (1978-1983) spear headed by Lateef Jakande.
4) Lagos state housing program fronted by Lagos state development
program corporation (L.S.D.P.C) (1999-2007).
5) The new national housing policy 1991Housing policies in Nigeria are
aimed basically at 6 major objectives which are to:
 Facilitate provision of houses for Nigerians at affordable prices.
 ii. Ensure the constant supply of loans to build, buy
improve their residential houses.
 iii. Provide incentives for capital market to invest in property
 iv. Encourage the development of specific programs for effectives
financing of housing developments, in particular low- cost housing for
low- income workers.
 v. Provide policy control over the allocation of resource and
funds between the housing sector and other sectors of the economy.
 vi. Provide long term loans to mortgage institutions for on-lending to
contributors to the fund



The national housing policy of 1991{and its financial component-national
housing fund} was in operation for over eight years. A review of its
implementation and performance did not show any remarkable influence in
housing delivery in the country. Between1992 and 1999 0nly #80millionwas
disbursed to180 contributors out of #3.738 billion collected from
over 16,624,857 national housing fund contributors which makes up about
180new dwellings. This makes the percentage of dwellings met up with
about0.01% {Arigbabola, 2000}.


The national housing program launched by the then head of state General
Sanni Abacha on April 1994. it also took advantage of the national housing
fund because it was the off shoot of national housing policy of
1991.The primary aim was to establish a permanent housing delivery system
which should be self-sustaining under a revolving fund arrangement. The
target figure was 121,000 housing units to be distributed throughout the
states of the federation. Available statistics shows that only 1,367 units were
completed and another 17,792units are under construction. This only
accounts for 15% of the project target.


The problems facing the supply of housing in Nigeria as identified by
these researches are as follows:

i. Difficulty in securing land and where possible at high prices
ii. High cost of labour, building materials leading to high cost building
construction cost.

iii.Lack of mortgage finance and where available with difficult lending
terms and conditions {such as availability of collateral securities and
high interest rates} to the exclusion of low income people.
iv. Our crowding, high room occupancy rates leading to over use\
over stretching of existing facilities with in turn often break down.
v. High housing rents per unit leading to occupants spending more than
the recommended rate 20% of their monthly income on housing. Also,
many land lords these days demand up to 2years rent in advance
which is not easy to come by.
vi. Acute shortage of housing accommodation which probably would
contribute to high rents and overcrowding.
vii. The growth and development of slums especially by the
first migrants as a result of acute quantitative shortage of housing. The
slums and squatter settlements have created very unsightly
conditions, urban blight with environmental deterioration and
degradation and can even lead to disease or epidemic.
viii. High cost of housing designs and professional fees and the
building design in some cases do not meet the socio-cultural need of
the people. Also, there is high cost of obtaining development permit
from town planning authorities.
ix. Provision of infrastructural facilities such as good roads, pipe-
borne water {supplies}, power supply {electricity}, drainage system,
refuse disposal systems etc. . Power supply in Nigeria today is grossly
inadequate as most resident enjoy electric power less than10% of the
time on the average in most urban centers yet they pay bills as if they
enjoyed 100% supply of power.
x. Power transportation services together with distance to place of work,
schools, shop{for shopping} etc. equally contribute to the existing
housing problem, especially if the transportation cost are high
or places of schooling or employment location are far.
xi. Rural housing problem, students housing problems, urban filth and
squalor, poor sanitation services, unwholesome and unhealthy


Below is listed some suggestions as practical solutions to some of Nigeria’s
housing delivery problems. The government should;

I. Ensure adequate provision of site and services scheme for massive
housing provision for all its employees.\
II. Ensure the effective mobilization of mortgage finance so as to make
same easily accessible to its entire staff.
III. Pursue vigorously a staff housing loan scheme such that all their staff
can benefit at below market interest rates. Monthly deduction can be
made from staff’s only monthly salary so as to recover both the
principal and the interest. By so doing, homeownership as a policy
would then be pursued at various government levels.
IV. The land use decree of 1978 should be positively reviewed to make
land acquisition to all and sundry much easier.
V. Government can also pursue rent control measures that will
be practicable and result oriented so as to effectively control
the problem of high rents.
VI. Urban renewal measures, programs and projects should also be given
adequate attention by the various government of the Federation. This
is with a view to eliminating the problems of poor environmental
sanitation, urban blight and squalor and unsanitary conditions.
VII. Government should pursue a dynamic mortgage finance\ credit
facilities policy such that such finances would be within reach of low
income people, at very moderate lending terms including below market
interest rate.
VIII. Government can build model housing estates for the low income
people where they can buy houses of their own at very liberal
IX. Government should pursue an aggressive homeownership policy with
very good home ownership programs to back it up.
X. Other positive measures, policies\programs that can significantly
contribute to solving the numerous housing problems of this country.
XI. The federal government should as a matter of policy set aside a
reasonable percentage of the country’s gross national product or gross
domestic product or its annual budget for housing. This will ensure a
steady supply of funds and will boost the housing sector.


The need for housing in Nigeria is enormous. This section reviewed the
conceptual issues underpinning the delivery of housing. The various public
interventions in housing delivery in policies have been examined. This term
paper also identified and has discussed the various problems that have

bedeviled the provision of housing in Nigeria, the various policies the
government put in place to counter these problems, the short comings of
these policies and suggested some possible practical solution to these


Hornby A. S. ( 1984 ) “ Oxford Advanced learners dictionary” Oxford
University press Ezenagu V.C. ( 2000 ) “ Fundamentals of housing” Living-
Stone Publishers Arigbabola A. ( 2000 ) “ Conceptual issues in Housing and
Housing provision” Unpublished. Balogun M. O. (2007) “The built
environment – innovation policy and sustainable housing development in
Nigeria ” Builder Focus 2007

Ezenagu V. C. (1998) “Concepts of housing” Unpublished Omange G. N.
(2001) “Government involvement in housing” Unpublished

REG. NO. 1855