APPRAISING THE URBAN HOUSING CRISIS IN AKURE

METROPOLIS, NIGERIA

OLATUNJI ABRAHAM TOLU

1305030004

IN PARTIAL FULFILLENT OF THE REQUIREMENT FOR THE

AWARD OF BACHELOR OF SCIENCE DEGREE IN ESTATE

MANAGEMENT SUBMITTED TO THE DEPARTMENT OF ESTATE

MANAGEMENT, COLLEGE OF ENVIRONMENTAL SCIENCE

JOSEPH AYO BABALOLA UNIVERSITY, IKEJI ARAKEJI, OSUN

STATE.

JUNE, 2018
 DECLARATION

I hereby declare that this research work carried out by me strictly adheres to laid down

laws and procedures and that this study was not copied from anywhere. As such, all

materials used in this study were duly acknowledged.

Name: Olatunji, Abraham Tolu

Matric number: 1305030004

Signature: ________________

Date: June, 2018

ii
 CERTIFICATION

I certify that this dissertation written by Olatunji, Abraham Tolu, has been

approved by me as having satisfied the requirements of the School of Undergraduate

Studies, Joseph Ayo Babalola University for the award of Bachelor of Science (B.Sc.)

degree in Estate Management.

_______________ ________________
Mr. Araromi S.P. Date
Project Supervisor

_______________ ________________
Prof. Ajayi C. A Date
Head of Department

_______________ ________________
External supervisor Date

iii
 DEDICATION

This academic work is dedicated to my maker and creator for His grace and mercies, for

seeing me through a five-year academic experience.

To my parents, Mr & Mrs Olatunji for their love, care and every form of support. To my

siblings, Aunty Tomi, Bro Timi, Aunty Tayo, Aunty Tobi and Titus. God bless you all. Love

you all.

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 ACKNOWLEDGEMENT

This work is the result of team efforts. As such, I extend my gratitude to:
Alpha and Omega for seeing me through this facet of my life. My family members for
their love, support, care and understanding at all times.
My project supervisor, Mr Araromi S.P, for overseeing this work from start to finish
and also for his time and tireless efforts on the successful completion of this project.
I also want to appreciate the Head of the Department, Prof. Ajayi C.A for his immense
contribution towards the growth and development of the Department and Students, God bless
you sir.
I am equally grateful to my lecturers in Joseph Ayo Babalola University, who impacted
me with knowledge in the field of Estate Management: Prof. Ogunba, Associate Prof.
Adebayo, Esv Audu, who is always ready to give advice and recommendations, Mr. Adebisi,
Esv. Adeyemi. They all played their role in making my stay in JABU a historic one. Thank
you all for your professionalism, your dedication to educating young minds in this
great field of study.
All the friends I met in this journey; class of 2018 Thank you all.

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 LIST OF TABLES

Table 1 Percentage of distribution of respondents according to sex........................................27

Table 2 Percentage Distribution of Respondents according to Age........................................27

Table 3 Percentage Distribution of Respondents according to Marital Status.........................28

Table 4 Percentage Distribution of Respondents according to the Qualification obtained.....28

Table 5 Source Field Study......................................................................................................28

Table 6 Length of occupancy in the building...........................................................................29

Table 7 Annual rent -paid........................................................................................................29

Table 8 Contribution of rental value to urban crisis in Akure.................................................29

Table 9 Challenges facing the urban developments in your area.............................................30

Table 10 Government provision for affordable housing units.................................................30

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 TABLE OF CONTENTS

DECLARATION.......................................................................................................................ii
CERTIFICATION....................................................................................................................iii
DEDICATION..........................................................................................................................iv
ACKNOWLEDGEMENT.........................................................................................................v
TABLE OF CONTENTS..........................................................................................................vi
ABSTRACT..............................................................................................................................vi
INTRODUCTION......................................................................................................................1
1.1 BACKGROUND TO THE STUDY...........................................................................1
1.2 STATEMENT OF THE PROBLEM...........................................................................2
1.3 RESEARCH QUESTION...........................................................................................3
1.4 AIMS AND OBJECTIVE OF THE STUDY..............................................................3
1.5 JUSTIFICATION OF THE STUDY...........................................................................4
1.6 SCOPE OF THE STUDY...........................................................................................4
1.7 STUDY AREA............................................................................................................4
1.8 LIMITATION OF STUDY.........................................................................................5
CHAPTER TWO.......................................................................................................................6
2.1 THE NATURE OF NIGERIA’S HOUSING PROBLEMS........................................6
2.2 GOVERNMENT RESPONSES..................................................................................7
2.3 NEED FOR HOUSING..................................................................................................13
2.4 NEED FOR AFFORDABLE HOUSING......................................................................14
2.5 DEFINITIONS OF THE TERMS.............................................................................15
2.5.1 HOUSING..........................................................................................................15
2.5.2 HOUSING AFFORDABILITY.........................................................................15
2.6 HOUSING PROVISION IN NIGERIA....................................................................16
2.7 HOUSING FINANCE IN NIGERIA........................................................................17
2.8 CAUSES OF THE SHORTAGE OF RESIDENTIAL HOUSING IN AKURE...........17
2.8.1 POPULATION CHANGE.................................................................................17
2.8.2 THE PROBLEM OF LAND ACCESSIBILITY.....................................................18
2.8.3 COST OF BUILDING MATERIALS ON CONSTRUCTION.........................18
2.8.4 THE DEARTH OF CREDIT FACILITIES.......................................................18

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 2.9 THE EFFECTS OF RESIDENTIAL ACCOMMODATION SHORTAGE.............19
2.9.1 RAPID DEVELOPMENT OF SQUATTER SETTLEMENT..........................19
2.9.2 DISTORTION OF THE MASTER PLAN........................................................19
2.10 STAKEHOLDERS IN AFFORDABLE HOUSING FINANCE/PROVISION IN
AKURE AND NIGERIA.....................................................................................................19
2.10.1 FEDERAL MINISTRY OF HOUSING AND URBAN DEVELOPMENT.....19
2.11 NATIONAL HOUSING FUND DECREE 3 OF 1992.............................................20
2.12 FLAWS IN THE STRATEGIC FOR SOLVING THE HOUSING CRISIS.............21
CHAPTER THREE..................................................................................................................24
3.0 RESEARCH METHODOLOGY..............................................................................24
3.1 SOURCES OF DATA...............................................................................................24
3.1.1 PRIMARY SOURCES............................................................................................24
3.1.2 SECONDARY SOURCE........................................................................................24
3.2 SAMPLING TECHNIQUE............................................................................................25
3.2.1 SAMPLE FRAME...................................................................................................25
3.2.2 DETERMINATION OF SAMPLING SIZE...........................................................25
3.3 QUESTIONNAIRE ADMINISTATION.......................................................................25
3.3.1 QUESTIONNAIRES DESIGN...............................................................................25
3.3.2 QUESTIONNAIRES DISTRIBUTION..................................................................26
3.3.3 COLLECTION TECHNIQUES..............................................................................26
3.4 TECHNIQUES FOR DATA ANALYSIS.....................................................................26
3.5 LIMITATION OF THE RESEARCH METHODOLOGY............................................26
CHAPTER FOUR....................................................................................................................27
4.1 INTRODUCTION.....................................................................................................27
SECTION A......................................................................................................................27
4.2 Results.......................................................................................................................28
CHAPTER FIVE......................................................................................................................32
5.1 SUMMARY..............................................................................................................32
5.2 CONCLUSION.........................................................................................................32
5.3 RECOMMENDATIONS..........................................................................................32
REFERENCES.........................................................................................................................34
QUESTIONNAIRE..................................................................................................................36

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ix
 ABSTRACT

Housing is one of the three basic needs of mankind and it is the most important for the
physical survival of man after the provisions of food. It is based on this that the project
appraising the urban housing crisis in Akure. The unaffordable housing in Akure is not a
peculiar situation. Moreover, it is aggravated due to its designation and the mandatory
relocation of job environment from its predecessor (Lagos) and another environment. This
then shows the approach to Government Housing Schemes at this pointy to be that of
continued concentration in the urban areas thus giving a little or negligible though about the
needs of the low income earning group of the labor force. The objectives considered
includes: examine the challenges associated with urban crisis in Akure; identify the
affordable solution out of the urban crisis in Akure.

Relevant literature review of the objectives was conducted to achieve the aim of the project.
In Nigeria, most people live in poor quality housing and in unsanitary environments. This
problem of inadequate housing has been compounded by the rapid rates of urbanization and
economic growth. Housing difficulties is more serious for the low-income groups where
problems have been complicated by rapid growth, inflated real estate values, speculative
activity, and influx of poor immigrants and lack of planning. One can also site the
increasingly significant shifts in the form and design of housing from the rooming form to flat
and single-family house forms as a factor responsible for acute shortage of housing for the
low-income groups.

Data were collected using questionnaires and presented with Simple percentage table. The
study also revealed that the contributory effort of government for affordable housing units is
largely recognized by majority of the respondents. Based on the findings of this research
work, “Appraising the urban housing crisis in Akure”, the Private sector has made an
impact in affordable housing provision within the study area, this is not unconnected with the
fact that most of the residential properties were built by Government and sold to individuals
majorly.

It was recommended that Government should encourage uniformity in the operation of

Private housing sector; the mode of operation should be the same; interest rate charged
should also be the same all over Nigeria.

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 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The inadequacy of house provision cum affordability has been an ancient fact in the world
over with particular extreme cases within the urbanized towns in the developing economies.
Housing is one of the three basic needs of mankind and the most important for the physical
survival of man after the provisions of food; it is also one of the best indicators of a person’s
standard of living and his place in the society. (Agboola, 2005) described the housing an
individual life in as a symbol of his status, a measure of his achievement and social
acceptance, an expression of his personality and the barometer that seems to indicate in a
large measure, the way the individual perceives himself and how he is perceived by the larger
society, the measure of all the good (or bad) things in life that will come to him and his
family.

The unaffordable housing in Akure is not a peculiar situation. Moreover, it is aggravated due
to its designation and the mandatory relocation of job environment from its predecessor
(Lagos) and other environment. This then shows the approach to Government Housing
Schemes at this pointy to be that of continued concentration in the urban areas thus giving a
little or negligible though about the needs of the low income earning group of the labor force.

Housing affects the health, productivity and well-being of a person. It has effect on the labor
force of a country and consequently, the performance of the national economy. Onyike
(2009), this important commodity, housing, must not only be available but also affordable.
The challenge facing the government therefore is not only to provide the houses but to make
the houses affordable to majority of Nigerians.

Onyike (2009), described affordable housing as the housing that can be acquired from
household income without sacrificing any of the other essential need of the household.

Struyk (2005), also attest to the above by viewing affordable housing as the ability to
purchase a dwelling of the appropriate size and minimum physical and sanitary standards and
still have sufficient income to enjoy at least the minimum consumption of other essential
goods and services. In other part of the world, a commonly accepted guideline for housing

1
affordability is a housing cost that does not exceed 30% of a household’s gross income per
annum (Struyk, 2005).

As more and more Nigerians make towns and cities their homes, the resulting social,
economic, environmental and political challenges need to be urgently addressed. House
prices and rents, on the other hand, have grown ahead of general inflation, Onyike (2009).

Making matters worse, the composition of houses for sale and rent on the market has been
inexorably shifting towards very expensive house.
The problem of adequate housing is not peculiar to Nigeria. According to the UN Habitat, 30
percent of the world’s urban population live in slums, deplorable conditions where people
suffer from one or more of the following basic deficiencies in their housing: lack of access to
improved water; lack of access to improved sewage facilities (not even an outhouse); living
in overcrowded conditions; living in buildings that are structurally unsound; or living in a
situation with no security of tenure (that is, without legal rights to be where they are, as
renters or as owners), Struyk (2005).
The same report says that 35 percent of the world’s rural population lives in unacceptable
conditions. Overall more than two billion people are in desperate need of better housing. A
major impediment to the construction of housing units in Nigeria however, is the high cost of
land.
To meet Nigeria’s need of over 17 million housing units would require at the minimum about
17 million plots of land. When converted to a more common unit of measurement(square
kilometer), that would amount to approximately 11,470 square kilometres, roughly the size of
Rivers State, or three times the size of Lagos State. Onyike (2009).

1.2 STATEMENT OF THE PROBLEM

“At the turn of the century, the objectives or target of adequate housing provision that will be
available, affordable and habitable for the ever-increasing population of Nigeria (the Akure
metropolis) on the basis of sustainability and efficiency has always remained a highly
incredible claim. The problem has been not only of limited resources and other effects but
also poor management of already designed policies, misplacement priorities and the failure of
government to effectively design and implement a strategy of partnership and collaboration
through the private sector”, this in turn have effect on both the value and rental value of

2
available housing within the city, which will automatically force those that cannot afford it to
move to the outskirt of the city. Onyike (2009).

Flaws in the housing policy and programme include inconsistent and organizational structure
as a result of political instability and over centralized mechanism of decision and execution.

Factor such as price of housing units; location; value and taste; cost of building materials; and
poor/substandard construction are further identified to be root causes of the very minimal and
disappointing achievement of the urban Housing provision.

Houses built by the Federal Government and the State Housing Corporation that are meant
for the low-income group (i.e. low cost housing) are very expensive and far from the
financial reach of the low income earners.

The above will jeopardize governments’ efforts to provide housing for all within a targeted
period of time.

This observation made the researcher interested in trying to examine urban housing crisis in
Akure metropolis and hence the research work.

1.3 RESEARCH QUESTION

To investigate the research problem earlier stated and to rightly address the focus of this
study more objectively, certain questions have been raised. It is believed that obtaining the
right answers to these questions will lead to the achievement of the objectives of the study.

The questions are as follows:

1. What is the level of urban housing crisis in the study area?

2. What are the challenges associated with the urban housing crisis in the study area?

3. What are the way out from the urban housing crisis in study area?

1.4 AIMS AND OBJECTIVE OF THE STUDY

Though housing deficit is one of the major problems suffered by urban and rural areas in the
country and the main causative factor is poverty, the urban housing crisis situation is not a

3
dead end. The aim of the study is to appraise the urban housing crisis in Nigeria, with a focus
on Akure metropolis. To achieve the aim, the specific objectives are to:

1. Provide an overview of urban housing crisis in study area;

2. Examine the challenges associated with urban housing crisis in study area;

3. Identify the affordable solution out of the urban housing crisis in study area.

1.5 JUSTIFICATION OF THE STUDY

This work will be carried out with the aim that its outcome will be of great value to several
interest groups; the academia, investors and government at all levels.

For the academics, the literature review, findings and recommendations will enrich the scanty
literature of this topic and also serve as further researchers in the study area. It will equally
benefit the investors; hence the research will provide a good insight into the viability of other
property investments and also proffer solution to the problem of housing in Akure metropolis

1.6 SCOPE OF THE STUDY

This study is on appraising the urban housing crisis in Nigeria using Akure metropolis as case
study. The investigation would consider the environmental, social economic, demographic,
transportation infrastructural and housing amenities conditions relevant to enhance estate
setting as well as property development.

1.7 STUDY AREA

Akure is one of the traditional Yoruba towns in Nigeria and has been in existence long
before the advent of British colonial rule in Nigeria. Akure was an independent region, until
19th century when it was included in Benin Kingdom. Great Britain took over the control of
the region in 1894. The city is located within Ondo State in the South Western part of
Nigeria. The current medium-sized urban centre became the provincial headquarter of Ondo
province in 1939 and capital city of Ondo State and a Local Government headquarters
in 1976. The city lies approximately on latitude 70°15’ north of the Equator and longitude
50°15’ east of the Greenwich Meridian.
The increased relative political influence of Akure as a state capital since 1976 has greatly
promoted its rapid growth and increased socio-economic activities. The 1991 national –
population census, reported the population of Akure as 239,124 and its estimated population

4
in 1996 was 269,207 as given by NPC. At present the city is estimated to have over 350,000
people. The city’s morphology has changed over time to assume its present status with its
attendant housing problems, as experienced in similar medium sized urban centres in Nigeria.
Akure is located approximately 700 kilometres South West of Abuja, the Federal Capital of
Nigeria and about 350 kilometres to Lagos the former capital of Nigeria. The population of
the city grew from 144,544 in 1987 to 148,880 in 1988 and 153,347 in 1989 to 157,947 in
1990 (Ondo State of Nigeria, 1990). According to NPC, the 1991 national population census
however, put the population of Akure at 239,124 and its estimated population in 2006 was
353,211. At present the city is estimated to have over 387,087 people.
The rate of urbanisation in Akure outpaces the rate of economic development. It is currently
experiencing a high pace of urbanisation compared to other emerging cities in Nigeria.
Omole however, noticed that some neighbourhoods of the city can best be described as slum
characterised by congested district, deteriorating, unsanitary housing environments and
noticeably poverty area. Despite the enormous amount of money proposed for urban
investment in the National Development Plan Olotuah very limited investment is made in her
infrastructure. An increasing shortage of urban services and infrastructure characterize Akure
town, and these are only accessible to a diminishing share of the population. Olanrewaju had
earlier recommended that urban renewal in form of rehabilitation and upgrading programme
was needed to facelift the city and enhances its liveability.

1.8 LIMITATION OF STUDY

The major limitation to this research work is the inability of the target audience attends to
questions as required for the research work. Administering the questionnaire was like an
infringement on the respondent’s time. As a result, getting the respondents to settle down to
respond to the questionnaires was like consuming and required lot of patience.

5
 CHAPTER TWO

LITERATURE REVIEW

2.1 THE NATURE OF NIGERIA’S HOUSING PROBLEMS

Housing problem have been generally accepted as being diverse and complex. Within the
spectrum of this problem, one can identify both quantitative and qualitative deficiencies.
Identified the major housing problems in Nigeria as that of insatiability of human needs for
housing. This problem is world-wide and it is of a recurring nature. In fact, it is doubtful if
any nation of the world can satisfactorily meet its housing requirements.

In Nigeria, most people live in poor quality housing and in unsanitary environments. This
problem of inadequate housing has been compounded by the rapid rates of urbanization and
economic growth. Housing difficulties is more serious for the low-income groups where
problems have been complicated by rapid growth, inflated real estate values, speculative
activity, and influx of poor immigrants and lack of planning. One can also site the
increasingly significant shifts in the form and design of housing from the rooming form to
flat and single-family house forms as a factor responsible for acute shortage of housing for
the low-income groups.

The problem of inadequate housing is experienced in both urban and rural areas in Nigeria.
For example, NISER in a study of rural housing in the nine Southern States of Nigeria found
that, “the projected demand of housing units on an average of six persons per dwelling unit
for the nine states are 5.2 million in 1990, 7.0m in 2,000, 9.5m in 2,010 and 12.7m in the year
2,020. “Other manifests of the housing problem are: high rent in the housing market,
inadequate mortgage finance and in accessibility to mortgage loans. Those problems have
resulted in overcrowding, poor and inadequate social amenities, unsatisfactory and
unwholesome environmental conditions and urban squalor, the absence of open space, the
over development of land area leading to the overcrowding of buildings, in-accessibility
within residential areas, and in the scarcity and high cost of building materials.

Having identified the nation’s housing problems, this section will not be complete without a
brief mention of the causes of the problem. This is because we believe that housing policies
in trying to solve a nation’s housing problem must take into consideration the causes of the

6
problems. Some of the causative factors of housing problems include: natural increase in
population due to improve health care leading to a great demand: high rate of rural urban
migration; already existing overcrowding in our urban centres; high cost of land, building
materials and labor; and lack of dedication to duties, and lack of planning. These factors have
combined and acted together to heighten housing needs and problems in Nigeria.

2.2 GOVERNMENT RESPONSES

What has been the response of the government to the housing needs in Nigeria? This will be
summarized, under six eras – the pre-independence period, the First National Development
Plan period (1962-68) the Second National Development Plan Period (197074); The Third
National Development Plan Period (1975-80); The Fourth National Development Plan Period
(1980-85) and Post Fourth Plan Period (1985-1990) and the current democratic dispensation.

PRE-INDEPENDENCE (COLONIAL ERA)

Public Housing in Nigeria evolved during the colonial regime when the colonial
administration embarked on the provision of staff Quarters for its staff who could not build
their own houses. The type of housing made available by these colonial administrators were
usually the type comparable to what exists in their home country. In most regional and
provincial capitals both Junior and Senior Staff Quarters were built. The building of these
Staff Quarters marked the emergence of what is now called the Government Reservation
Areas (GRA). However, no effort was made by Governments to build houses either for sale
or rent to the general public. State intervention in the form of housing construction evolved
during the period of colonial domination. This policy was exclusively directed at the
provision of housing for the white colonial population “settled” in specially protected and
developed areas, referred to as Government Reservation Areas (GRAS), “Prohibited” to the
local population, the housing form and spatial pattern reflected the English nostalgia for the
“garden city”

POST INDEPENDENCE 1ST NATIONAL DEVELOPMENT PLAN (1962-68)

The post- independent period saw the development and extension of the GRAs and the
introduction of special public housing programme exclusively for the needs of the new
national elites in the higher hierarchy of the state apparatus. In 1962, National Development
plans was introduced into the budgeting system of the country instead of the fiscal and
sectoral plans which were previously used. From the first National Development Plans period

7
(1962 – 98), it was the intention or policy of the Pretoria South Africa government that low,
medium and high-income people should benefit from public housing and programmes of
government. However, the first ten years after independence does not have much to say about
government efforts in the provision of public housing in Nigeria.

THE FIRST NATIONAL DEVELOPMENT PLAN (1962- 68)

Mentioned housing as part of industrial estates, Land Acquisition and Town Planning. The
Plan indicated government’s aim of producing 24,000 housing units during the plan period.
Unfortunately. Only 500 housing units were built by the Federal Government before the
outbreak of the civil war in 1967.

THE 2ND NATIONAL DEVELOPMENT PLAN

The Second National Development Plan period (1970-74) was unique because government
accepted housing as part of its social and political responsibilities. It emphasizes housing
provision for all social groups whether displaced or not from the competitive housing market.
To fulfill the aim and objectives of the housing policy, the Gowon military administration
announced the following (6) during the second development plan period

(1) Immediate construction of housing Units by the Federal Military and state Military
Governments for rent at affordable prices.

(2) Increase in the construction of houses for government workers. (Though not explicitly
spell out, this implies the senior officials of the administrative mechanism).

(3) Development and expansion of loan for private housing (This case favored the most
privileged social group who already had access to the banks through collateral security and
employment stability.

(4) Increase in investment in local production of cement and other necessary building
material. Increase in the importation of cement to supplement the needs created in the
housing construction sectors.

At the completion of the plan period government was only able to produce

(A). Ninety Staff Quarters of various sizes in Lagos area.

(B). Four Blocks of Flats as transit residence for officials of the Ministry of External Affairs.

8
Perhaps, it is pertinent to mention at this point that government’s efforts in providing public
housing during the first and second plan period were concentrated in Lagos. The houses
themselves are prestigious housing, which could not be tagged public housing as such.

THE 3RD NATIONAL DEVELOPMENT PLAN (1975 – 80)

The third National Development plan period started what could be regarded in reality as the
emergence of public housing. It was at this period that the federal government published a
document referred to as the National Housing Policy for the country. During this plan period,
and as usual, government made policy statement on the need to bring relief especially to the
low-income groups, by obtaining a situation where no urban worker pay more than 20% of
his income on house rent. A total of 1.83 billion Naira was allocated to housing during this
plan period. In 1976, following the military overthrow of the Gowon regime, a reappraisal of
the housing policy and the numerical dimension of the constriction programmes was made
and incorporated into 1975 – 1980 Nation Development Plan. The rise in the oil economy and
local political pressures influenced this reappraisal. It was stated that:

(1) The Federal Military Government would build 202,000 housing units per year; 46,000
in Lagos, 12,000 for Kaduna, while 8000 units would be built in the state capitals.
The State Government would be directly involved and the Federal Housing Authority
(FHA) would provide the necessary infrastructure. (This marked the beginning of the
decentralization of FHA to state level).
(2) A Ministry of Housing, National Development and Environment with sole
responsibility on housing would be created. (For the first time, housing was accorded
a separate status and librated from the bureaucracy and financial inadequacy of the
ministry of works, to which it was subordinated).
(3) The additional financing of the Federal Housing Authority to directly construct and
develop housing estate in various cities of the nation. (This was different from the
initial policy line. It recognizes the need for qualitative housing development in the
larger secondary but no-primate cities) the temporary departure of the military from
state power and the installation of the shagari civilian regime saw another reappraisal
of the Housing programme. This was done under the excuse of the huge economic
and financial burden of the numerical dimension of the exercise.

However, the new capital, Abuja, was to be rapidly constructed during the same period. The
Federal Government in starting with this plan period involved itself in direct housing

9
construction through the Federal Housing Authority that sees to the issues of land acquisition,
land clearance, selection of contractors, and award of contracts and monitoring of the Federal
Government Housing Programmes. A total of 200, 000 housing units were planned to be built
within a period of five years in all states of the Federation at 40.000 housing units per year.
To allow for cheap housing cost and the provision of adequate building materials, the federal
government pegged the price of cement in 1975. Also, in 1975, an anti-inflation task force
was set up to examine the causes, and consequences of inflation, as it pertains to housing.
However, large scale as the government housing programme has been, it is inadequate,
because the proposed 200,000 housing units during the third National Development Plan is
only 22% of the projected – a shortage of 67,316 housing units at the end of the plan period.
In terms of achievement during this plan period less than one-eighth of the housing were
actually built.

THE FOURTH NATIONAL DEVELOPMENT PLAN 1981-85

The fourth National Development Plan emphasised among other things the need for balanced
development of the different sectors of the economy and of the various geographic areas of
the country. To this effect, housing received more commitment on the part of the Federal
Government and state Government through massive investment in the housing sector during
this plan period.

The Federal Government committed N1.6 Billion to the housing sector during the fourth
National Development Plan Period (1980-1985). Note should be taken that the fourth
National Development Plan Period coincided with the brief Civilian rule. Among the housing
programs were:

(a) Direct construction of 200,000 houses during the Plan period

(b) Provision of Staff quarters and Staff housing loans to Government employees
(c) Pursuit of site and services programs
(d) Urban Development in cooperation with the World Bank and the State
Governments.

Similar to the Federal Government, the State Governments also allocated N1.1 Billion to the
housing sector during the Plan period thus adopting the direct housing construction, staff
housing loans, site and services scheme and mortgage lending approaches.

10
POST FOURTH PLAN PERIOD (1986-1998)

With the change of government through a Military Coup in 1986, the mass housing exercise
was terminated. The Military Government claimed to no longer provide housing for
Nigerians on grounds of restraining economic situation. House ownership was left to the
hard-working Nigerians although efforts were made by the Government to reduce costs of
building materials and control land speculations. There is no doubt that this policy deviation
placed the urban poor and middle-class in further displacement from the housing market.

With the enormity and perpetual nature of housing problems facing the Country, the
Government nonetheless, took another look at housing and thus launched the National
Housing Policy in February 1991. This was a comprehensive document aimed at “ensuring
that all Nigerians own or have access to decent housing accommodation at affordable cost by
the year 2000 A.D.” This goal is consistent with the United Nations resolution of Housing for
all by the year 2000A.D. and thus required that- 700,000 housing units be constructed
annually in order to meet the target of 8 million units by the target year (2000 A.D) in
Nigeria.

The Policy provides for encouragement and promotion of active participation in housing
delivery by all tiers of government; strengthening of institutions within the system to render
their operation more responsive to demand; emphasizing housing investment which satisfy
basic needs; and encouraging greater participation by the private sector in housing
development. The Policy also suffered major setbacks in its implementation.

It is however important to note that 1994 marked a rethink of the Military Government to
addressing housing provision. Hence in an Address on January 20, 1994 by the Minister of
Works and Housing titled “The Beginning of a New Dawn” unveil a National Housing
Program for 1994-1995 to be executed under the Ministry. During the period a total of 121,
000 housing were to be constructed for all income groups (i.e. low, medium and high).
Priority was given to the newly created States i.e. each to have 5,000 housing units while the
rest and Abuja share 76,000 housing units according to the then estimated demand. To ensure
proper execution of this program, the Government formed a 16- man committee to study the
National Housing Policy in terms of its provision, compliance and implementation.

11
The issue of housing finance was addressed through the establishment of the National
Housing Fund in 1992 and granted a take-off fund of N250Million in October of that year.
Also the Federal Mortgage Bank (FMB) put in place three scheme viz; voluntary, mandatory
and budgetary allocation, and financial transfer scheme to curb the problem of housing
finance.

THE DEMOCRATIC DISPENSATION (1999 to date)

Federal Government involvement in housing within the last six years shows that at the very
least government has a significant contribution. One initial first step was to set up a 15-man
committee to look into the problem of urban development including housing. The committee
recommended appropriate framework for housing development among other issues. Already,
the Government has set up a new Ministry of Housing and Urban Development to deal with
housing and urban development which demonstrates government’s commitment to continue
to assume a paternalistic approach to housing.

Government identified under the National Housing Policy a prototype housing scheme which
was launched in order to increase the nation’s housing stock. The scheme was on a revolving
fund basis and ensures that proceed from sale of completed units are ploughed back into the
scheme.

Government also has four parastatals directly involved in housing viz, Federal Housing
Authority (FHA), Federal Mortgage Bank (FMB), Federal Mortgage Finance Limited
(FMFL), and the Urban Development Bank UDB). It could be recorded that the Federal
Housing Authority, responsible for implementing Government housing programmes by
developing and managing real estates on commercial basis, has within the last two to three
years completed 500 housing units in Abuja; it has entered partnership with private
developers to complete 1,127 units in Abuja and Port Harcourt (8). In Lagos, work has
resumed at sites, which were previously abandoned in other States, the FHA encourages State
Governments to take over formerly abandoned housing projects in their states. The Financial
institutions have been working hard on housing provision granting loans, mortgage, etc. to
people to build9- houses.

The Urban Development Bank in 2001 expended over N10 Million towards the
implementation of some 23 projects which cover housing, markets and motor parks,

12
upgrading of roads, development of cultural sites, and the construction of shopping
complexes.

2.3 NEED FOR HOUSING

Housing, by all surveys is one of the foremost problems both in quantitative and quantitative
terms, confronting governments at all levels. The acute shortage of decent shelter which is
apparent within the low and middle-income brackets is perennial.

The Federal Government through her agencies and parastatals has come a long of decade-
spanning attempts at providing affordable and sustainable housing for all Nigerians.

By this, various successive government have come with tremendous efforts trying to alleviate
the problem by formulating various policies, yet the quantitative housing shortage and un-
affordability has continued to persist resulting in over-crowding, high rental values, slums,
squatter settlements with their attendant socio-economic vices.

Jinadu (2004) considered finance as the most important actor of housing production.
Adequate finance is therefore the first requirement for successful and effective housing
delivery in any nation. This is because, at every stage of construction, money is needed to
acquire land, prepare plans and hire labor as well as to purchase the various materials and
infrastructure to be installed in housing delivery is stressed by Agbola (1998), who asserted
that "without all well-organized and efficient housing finance mechanism, the goal of housing
development policy will be largely unattainable".

Moss (2003) noted that with the increase in population and the migration of people from rural
to urban areas in search of often non-existence greener pastures, it has become more pertinent
that Governments find ways of providing housing either diversity or through support to other
to do so. The provision of housing is subject to the performance of macro-economic within
which the various housing financing systems are located.
Alile (2005) also noted that few years ago, it was clear that real estate when properly
financed and managed, would be one of the driving forces of the Nigerian economy and
society, rough estimate put the value of dormant investment in land and housing at about N8.
5trillion.Nigerians prefer to invest in land and houses than any other projects, yet the housing
stock remains inadequate. With the slow growth in real estate investment and the fact that

13
about 50% of the Nigerian population is under 25 years of age, strong demand for real estate
is expected to persist in all urban areas.

2.4 NEED FOR AFFORDABLE HOUSING

The United Nations estimates that Nigeria’s population in 2005 stands at 141 million and
predicted that it would reach 289 million by 2050 (Encarta, 2007). The United States Census
Bureau projects that population of Nigeria will reach 264 million by 2050. Nigeria will then
be the 8th most populous country in the world (Encarta, 2007). Rapid growth in population
creates demand pressure towards shelter and efficient supply and distribution of basic utilities
and services for the city dwellers, In most of our urban centres the problem of housing is not
only restricted to quantity but to the poor quality of available housing units. The effect which
is manifested in overcrowding in houses. Nigeria is perhaps the fastest urbanizing country in
the African continent. One of the most important challenges facing the country is the
provision of affordable housing. As more and more Nigerians make towns and cities their
homes, the resulting social, economic, environmental and political challenges need to be
urgently addressed (Raji, 2008).

A recent study of housing situation in Nigeria put existing housing stock at 23 per 1000
inhabitant. Housing deficit is put at 15 million houses (Mabogunje 2007) while N12 trillion
will be required to finance the deficit. This is about 4 times the annual national budget of
Nigeria (FHA, 2007). Home prices and rents, on the other hand, have grown ahead of general
inflation. Making matters worse, the composition of homes for sale and rent on the market
has been inexorably shifting towards very expensive home (Nubi, 2008).

The National Rolling Plan of 1990 – 92 estimated housing deficits at 4.8 million. The 1991
housing policy estimated that 700,000 housing units are to be built each year if housing
deficit is to be cancelled. The documents indicated that not less than 60% of the new houses
are to be built in urban centres. In 2006, the ministry of Housing and Urban Development
declared that the country needs about 10 million housing units before all Nigerians can be
sheltered.

Between 1975 and 1980, there were plans of deliver 202,000 housing units to the public but
only 28,500 units, representing 14.1% was achieved. Also, out of 200,000 housing units
planned to be delivered between 1981 and 1985, only 47,200 (23.6%) was constructed. Under
the National Housing Fund (NHF) program initiated in 1994, to produce 121,000 housing

14
units, it was believed that less than 5% was achieved. In spite of a series of government
policies towards housing delivery, one thing that is clear is that; there exist a gap between
housing supply and demand (Olomolaiye, 1999; Agboola, 1998; Adegeye and Ditto, 1985).

2.5 DEFINITIONS OF THE TERMS

2.5.1 HOUSING
Housing is generally referred to as shelter or lodging for human habitation. It is a structure
designed as abode for one or more persons (Encyclopedia America vol4, page 460). A
building provides a home for one or more families (Nerits students Encyclopedia, vol9, pp
95). According to Oluwande (1983), a house is the physical structure which human beings
use for shelter. Housing houses, flats and apartment that people live in especially when
referring to their types, price of condition (Oxford and advances learner’s dictionary,
interrelation student’s edition 7th edition).

Also, the draft of National Housing Policy 2004 defined housing as “the process of providing
a large number of residential buildings on a permanent basis with adequate physical
infrastructure and social services in planed, decent, safe and sanitary neighborhood’s to meet
the basic and special needs of the population”. Ighalo (2003), noted that its essential feature
was that housing was extensively viewed to include not only shelter but also other utilities
and community services such as energy, water supply, access road, sewage and refuse
disposal facilities, nearness to employment opportunities as well as education and health
facilities.
Jinadu (2004), referred to housing as a shelter or lodging for human habitation. He also views
housing as a bundle of services or a basket of goods which includes the physical structure
itself, the ancillary facilities and services within and around it, as well as the general
environmental qualities and amenities that surround the building.

Sanusi (2003) view housing as a very important consumer item, which impacts positively or

productivity, as decent housing significantly increases worker' health and well-being and

consequently, growth.

15
2.5.2 HOUSING AFFORDABILITY

Affordable housing is the housing that can be acquire from household income without
sacrificing any of the other essential need of the household. Household income which is
normally distributed among the household needs such as food, clothing, healthcare,
education, transportation and others. (Byron Shire, 2002) explained that when the provision
for housing affects the ability of the household to meet other essential needs, the household is
said to be suffering from housing stress.

Wikipedia (2007) defined affordable housing as a dwelling where the total housing costs are
affordable to those living in that housing unit. Wikipedia stretch that when the monthly
carrying costs of a home exceed 30 – 35% of household income, then the housing is
considered unaffordable for that household.

2.6 HOUSING PROVISION IN NIGERIA

Historically, Housing unit is treated as product hence the need for quality of it is to pair well
and perform desirably in the market, but quality in construction industry suffers significant
difficulty as it passes through extreme pressure driven by cost minimization rather than value
maximization. Research has shown that 75% of urban housing is situated in slum conditions
(UNDN, 1988), and indeed the quality of the housing is poor and clearly an affront to human
dignity (Olotuah, 1997; Agbola and Olatubara, 2003).

As part of effort to increasing qualitative housing for the masses in the country, the Federal
Government in 2004, pledged to adequately fund research pertaining to the manufacture and
the use of local materials in the sector. With aim of providing 40,000 houses, with at least
1,000 per state before year 2007.

Housing delivery in Nigeria is provided by either the Government or Private sector, but
despite Federal Government access to factors of housing production, the country could at best
expect 4.2% of the annual requirement. Substantial contribution is expected from other public
and private sectors. It should be acknowledged that private sector developers account for
most of urban housing (FOS, 1983). The production of housing in Nigeria is primarily the
function of the private market; approximately 90% of urban housing is produced by private
developers. Due to housing demand created by rural- urban migration, which account for
65% of urban population growth, the fixed supply of urban land, and inflation of rental and
housing ownership cost (Taylor, 2000). Unfortunately, the private sector is saddled with

16
numerous problems which make supply always fall far short of demand and lower production
quality (Nubi, 2008). The problem of qualitative housing has been a concern for both the
government and individuals. Appreciating these problems, both public and private sector
developers make effort through various activities to bridge the gap between housing supply
and demand, but the cost of building materials, deficiency of housing finance arrangement,
stringent loan conditions from mortgage banks, government policies amongst other problems
have affecting housing delivery significantly in Nigeria (Raji, 2008).

2.7 HOUSING FINANCE IN NIGERIA

The history of housing finance in Nigeria had been an appalling one Arilesere (1997),
Abiodun (2000) Okupe et al (2000). The sudden leap from Agro-based to Petro-Naira based
economy did not help matters. Rapid population growth in our cities has remained unchecked
ever since which led to this present state of acute shortage in affordable housing provision.

Housing finance was, during the colonial days was limited to the expatriate staff and few
selected indigenous senior civil servants in the urban countries. The establishment of Lagos
Executive Development Board (LEDB) in 1928; Nigeria Building Society (NBS) in1956;
formation of State Housing Corporations between 1956 and 1960; National Council of
Housing 1971 and, Federal Mortgage Bank of Nigeria (FMBN) 1977 with take-off capital of
N20m which was later increased to N150m in 1979, are very familiar developments in our
History (Nubi 2008).

The World Bank assistance was obtained in 1979. This led to housing projects in eight states
of Nigeria with Bauchi State having a share of N 24.6 million and Imo State, N63.8 million.
The 1980 – 1985 fourth National Development Programs also proposed a budget of N1.9
billion for housing.

During this period N600m was spent on housing construction. The failure of these
incremental housing production programs and the ever-increasing housing needs led to the
promulgation of National Housing Policy of 1991.

2.8 CAUSES OF THE SHORTAGE OF RESIDENTIAL HOUSING IN AKURE.

These are as follows: -

17
 2.8.1 POPULATION CHANGE

Population change is one of the major casual factors between the demand and supply of
housing units which has resulted in the acute shortage of the product in the Akure Metropolis.
The introduction of more business activities, the position of Abuja now as a solace and refuge
centre for those displayed by incessant ethnic and religion frictions in most parts of the
country, has continuously increase the population trend. The overall numerical increase
which has been rapid of late not have a corresponding increase in the residential
accommodation available.

2.8.2 THE PROBLEM OF LAND ACCESSIBILITY

The availability and accessibility of land for residential development has posed a major
challenge to prospective developers in Akure especially the private sector. By the provision
of land use Act of 1978, land is vested in the hands of the federal government and in the state
under the governors to hold and administer for the benefit of all, which also implies right of
access to land, irrespective of where, once the procedures set out for land acquisition are
followed.

2.8.3 COST OF BUILDING MATERIALS ON CONSTRUCTION

The continued increase in the prices of building materials and cost of construction affected by
high inflation, has been one of the deterrent factors to residential housing development in the
Akure. For instance, the basic and common types of building materials like cement, blocks
and bricks, sharp sand, soft sand and gravel etc. are very expensive and in some cases with
price variation within Akure.

The high cost of building materials has also been complemented by a corresponding hike in
the cost of construction/development; the minimum paid labour (masons) per day within the
Akure ranges between N3, 000.00 to N4, 000.00 per person per day.

2.8.4 THE DEARTH OF CREDIT FACILITIES

A sustainable housing finance system is one that is broadly accessible (serves the need of all
consumers at the market prices) and funded profitably by agents better to bear risk of
mortgage loans – (Sa’adu 1999). Sustainability as always emphasized implies continuity in
the source of funds, availability tests on necessary attributes for survival of the system and so

18
on. The general overview of apply development and finance atmosphere today in Akure, has
followed a definite trend, the high-income earners both in the private and government
establishments are favored more by the means of accessible credit facilities. They have
enough and genuine collateral to earn them a large sum that could stand the development cost
in Akure. Mortgage able assets in the form of old or new houses in the right quality, quantity
and cost are quite few with the other income brackets. With the high interest rate between
25% and 30% as well as a required equity of 20% it has become practically impossible for
the low-income earners to obtain housing loans. More so, the few mortgage institutions lack
the sustainable fund for property development especially funds flow of the long-term type.

2.9 THE EFFECTS OF RESIDENTIAL ACCOMMODATION SHORTAGE

The effects of the shortage of residential accommodation are as highlighted below:

2.9.1 RAPID DEVELOPMENT OF SQUATTER SETTLEMENT

Squatter settlements are areas that are illegally inhabited and also such uses do not conform
to the specified type in the master plan. In Akure, one common and fast emerging effect of
residential accommodation shortage is the creation of squatter settlements. People erect
illegal and shabby structures either of bricks, timber or construction of steel containers for
temporary accommodations. These squalid, dingy areas that are resulted to slum conditions
are inhabited mostly by low income earners who could not afford the luxury of owning their
own houses or meeting up with higher rental values charged by landlord.

2.9.2 DISTORTION OF THE MASTER PLAN

The high cost of land, building material and construction within the Akure has forced the
lower income earners of all works of life to spread out to the out skirts to create settlement
schemes for themselves. Most of these displaced populaces go to the original settlers
(indigenes) to buy parcel of land at very lower or cheaper prices and devoid of administrative
stresses. Structure are erected on such land befitting for their livelihood and economic
strength. These never settlements now pose a misuse of such land. Implying a violation
prescribed land use in the master plan. The repercussion of this development leads to
distortions of the master plan. More so, most of the lands or building are also assets of some
top government functionaries and demolition of these structures will degenerate to serious
power play.

19
2.10 STAKEHOLDERS IN AFFORDABLE HOUSING FINANCE/PROVISION IN

AKURE AND NIGERIA

2.10.1 FEDERAL MINISTRY OF HOUSING AND URBAN DEVELOPMENT

Federal Ministry of Housing and Urban Development was carved out from Ministry of
Works 59-and Housing. Their major function is to provide and focus on housing delivery all
over Nigeria. Other objectives of the Ministry include:

1. To formulate and set standard for the housing sector.

2. To coordinate and supervise the activities of other agencies of Government such as

FMBN, FHA etc.

3. Upgrade and maintain infrastructure for housing stock of all Federal Ministries.

4. Upgrade and maintain the housing stock of all Federal Ministries.

5. Developed Data Bank for housing needs.

6. Provide and maintain public buildings.

7. Establish building standard codes and safety codes.

2.11 NATIONAL HOUSING FUND DECREE 3 OF 1992

A second component of the policy on housing finance was establishment of a contributory

saving scheme known the National Housing Fund to which every Nigeria earning N3, 000.00
and above per annum is required to contribute 2.5% of his basic monthly salary or declared
income. Banks, Insurance Companies and the Federal Government were also to contribute to
this fund. These institutional contributions never crystallized, and the CBN is not known to
have made any effort to enforce the requirement for commercial banks to ensure that 10% of
their loan portfolio were in mortgages.

The fund, which is managed and administered by the Federal Mortgage Bank of Nigeria has
provided the cheapest source of funding to the Primary Institutions. The PMLs in. The aims
and objectives of National Housing Fund includes the following:

a) Facilitate the mobilization of the fund for the provision of houses for Nigerians at
affordable prices.

20
b) Ensure the constant supply of loan to Nigerians for the purpose of building,
purchasing and improving of residential houses.

c) Providing incentive for the capital market to invest in property development.

d) Encourage the development of specific programs that would ensure effective

financing of housing development, in particular low cost housing for low income
workers,

e) Provide proper policy control over the allocation of resources and fund between the
housing sector and other sectors of the Nigerian economy and

f) Provide long term loan to mortgage institutions for on-lending to contributions to the
fund.

2.12 FLAWS IN THE STRATEGIC FOR SOLVING THE HOUSING CRISIS

The review of government activities in housing provision was made to highlight the nature
of responses to the nation’s housing problems. The numerical dimension of the national and
state housing program was very ambitious.

However, the Nigeria Government (federal and States) should be commended for their
interest in housing provision.

Unfortunately, in terms of physical manifestation the entire program fell grossly from the
target. Ridiculously, from 1973 to 1979 only 10,000 housing units were constructed in Lagos
and bout 24.000 units in the rest of the states. The Federal Housing Authority admitted, in
1980, that 19% of the program was completed in Lagos and 13% in the rest of the nation the
civilian administration, before the 1983 military coup claimed it executed 20% of its housing
program (about 30,000 housing units). The Lagos State civilian government constructed
10.428 units out of the planned 50.000 units whereas it completed about 70% of the housing
units meant for the high-income groups (Alaka, Opebi, Alapere estates). The 1984 military
administration of Lagos State completed 200 units out of the programmed 8000 for 1983-
1986. The story of serious short fall from planned targets for housing could continue like that
without end. The question then is why did the government responses fail to solve the housing
problems especially in their numerical dimensions? The reasons were simply because some
of the strategies had flaws. Attempts shall be made to identify such flaws as a pre-condition
for drawing lessons for the future.

21
1. Mass housing/ direct housing: Flaws in the housing policy and program
include inconsistent and organizational structure as a result of political instability and
over centralized mechanism of decision and execution. Factor such as price of
housing units; location; value and taste; cost of building materials; and
poor/substandard construction are further identified to be root causes of the very
minimal and disappointing achievement of the urban Housing provision. Houses built
by the Federal Government and the State Housing Corporation that are meant for the
low-income group (i.e. low-cost housing) are very expensive and far from the
financial reach of the low-income earners. Location of many of the housing units
especially the Federal Units were outside the functional and active boundaries of the
cities. The locations reflect lack of coordination and contravention from the existing
residential transport, social and economic patterns of the cities where the units were
built. Ibadan, Ondo, Akure, Ife and Osu are striking examples. In the housing
delivery system, the standard of space and quality adopted was too high and the
material components of the building i.e. room size, finishes, etc. were of middle level
taste as in the case of low cost housing. The high standard of taste consequently
hindered housing provision in numerical terms. Furthermore, high inflation and
subsequent high cost of building material serve as militating factors against urban
housing provision. The poor performance of indigenous contractors posed a serious
problem to housing delivery. Houses were often poorly constructed.
2. Land Inadequacy: The practice and system of granting loans tend to
dissuade the low-income people from benefiting. Only the higher income group has
access to loan facilities.

3. Inadequate Attention to Other Solutions: There are other means of

encouraging home construction, e.g. site and service scheme, core housing scheme
etc., apart from direct housing construction. Attention in this regard was less during
the National Develop Plan periods.

4. Ineffective Program of Action and machinery: Many government measures

introduced in the past were not accompanied by effective program of action and
appropriate institutional arrangement for their execution. For example, the Anti-
Inflation task force made a number of recommendations on the housing problems
which were not implemented. Examples of recommendations that were not

22
 implemented include the cheap land, especially for the poor, and the provision of
locally produced building materials at affordable prices.

5. Narrow Conception of Housing Need: Adequate attention was not placed on

housing quality and other aspects of housing need in the periods before the 1990s.
Housing need in Nigeria is reflected in the socio-cultural group in the country and
therefore varies with each ethnic group. The focus of housing program in the past
particularly the low-income housing has not adopted the broad interdependence of
housing need.

6. Politics: Politics played a major role in hindering housing delivery in the

Country as politicians at Federal and States manipulate or influence housing program
to suit their selfish interests. Housing program were executed without any reference to
planning. Evidence is the location of many housing estates around the Country with a
minimum of 3km from the cities. Contracts for housing projects were and are awarded
on political basis.

23
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

In order to gather the necessary information required for this dissertation, some places

where visited, many people were contacted as well as interviewed by means of

personal interviews, chats, discussions, and questionnaires, also the use of journals,

internet, textbooks, note books and seminars.

3.1 SOURCES OF DATA

The sources of data would be

Primary sources of data

Secondary sources of data

3.1.1 PRIMARY SOURCES

This method of data collection is about the most reliable because first-hand

information is gathered and the following method was adopted in collecting the

primary data.

- Questionnaire Administration

- Direct interview

- Recognizance survey

3.1.2 SECONDARY SOURCE

These source of data or information are obtained from published and unpublished

materials such as:

- Textbooks

24
 - Internet materials

3.2 SAMPLING TECHNIQUE

The sampling technique aids the selection and administration of elements in the

population. The method that will be employed will vary depending on the population

being researched and the technique that is adopted in the selection of the sample is the

random method.

3.2.1 SAMPLE FRAME

My sample frame included the completed list of all the units in my study population.
it was a list that contained the basic details of all members of the target population
from which samples were selected. The sample frames in this instance were
residential buildings in Akure (Ijapo) with a total of 300 occupants.

3.2.2 DETERMINATION OF SAMPLING SIZE

This is described as a portion of the total population itself is the aggregate of all the

elements to be studied from where certain members of the samples can be selected. It

is from this population that a number is selected as the sampling size. Hence, a total of

300 questionnaires was administered and distributed to occupants.

3.3 QUESTIONNAIRE ADMINISTATION

3.3.1 QUESTIONNAIRES DESIGN

In order to obtain the appropriate and adequate responses from my respondents, a

combination of fixed and open-ended type of questionnaires was designed and

prepared in order to know the opinion of the respondents as regards the subject of this

dissertation. While the open-ended questions allowed the respondents to give detailed

answers in cases where necessary.

25
3.3.2 QUESTIONNAIRES DISTRIBUTION

In order to gather relevant and detailed information needed to carry out this, project

work. The questionnaires designed were distributed to occupants.

3.3.3 COLLECTION TECHNIQUES

The answered questionnaires were retrieved immediately after answering the

questions from the respondents to avoid delay and loss of questionnaires by the

respondents.

3.4 TECHNIQUES FOR DATA ANALYSIS

The techniques adopted for the data collected to organize and interpreted the

responses from the respondent will be in a tabular form which will be arranged

accordingly.

3.5 LIMITATION OF THE RESEARCH METHODOLOGY

In attaining the objectives of this study, the problems encountered includes:

1. Some of the occupants refuses to collect the questionnaires.

2. Problems in explaining the aims of the questionnaire to the occupants.

3. Language barrier in some of the buildings.

4. Inadequate time to distribute the questionnaires.

5. Financial constraints.

26
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

This chapter presents and analysis the data collected in the course of this research through
questionnaire. This data would be presented using table of simple percentages. The researcher
administered 300 copies of questionnaire to residents of Ijapo Housing Estate, Ondo State.
The analysis would be based on the 270 questionnaires that were retrieved.

SECTION A

Sex Frequency Percentage

Male 151 56%
Female 119 44%
Total 270 100%

Table 1 Percentage of distribution of respondents according to sex

From the table above, of the sample size of 151, 56% are male, while 119, 44% are female.

This reveals that a larger part of the respondents was of the male gender.

Age Frequency Percentage

Less than 26 56 21%
26 – 35 54 20%
36 - 45 116 43%
Above 45 44 16%
Total 270 100%

Table 2 Percentage Distribution of Respondents according to Age

27
The above shows that, 21% of the respondents are less than 26, 20% are between the ages of
26-35, 43% of the respondents are between the ages of 36-45, while 16% of the respondents
are above 45. It shows that more respondents fall between the ages of 36 - 45 above.

Table 3: Percentage Distribution of Respondents according to Marital Status

Marital Status Frequency Percentage

Married 160 59%
Single 110 41%
Divorced - -
Total 270 100%
Table 3 Percentage Distribution of Respondents according to Marital Status

Analysis of the above shows that 59% of the respondents are married, 41% are single.

Qualification Frequency Percentage

Obtained
OND 53 20%
HND 58 21%
BSc 131 49%
PhD 28 10%
Total 270 100%
Table 4 Percentage Distribution of Respondents according to the Qualification obtained

The above shows that, 20% of the respondents obtained OND qualification, 21% obtained
HND qualification; 49% have BSc. qualifications while 10% of the respondents obtained
PhD qualifications. It shows that larger part of the respondents has obtained a bachelors’
degree.

4.2 Results

The focus of this study is Appraising the Urban Housing Crisis in Akure Metropolis, Nigeria.
Questionnaire was administered and the responses are presented and analysed in this chapter.
A total of 300 copies of questionnaire to residents of Ijapo Housing Estate, Ondo State. The
analysis would be based on the 270 questionnaires that were retrieved. The data collected
were analyzed and presented in table and the information of each table was interpreted for
easy understanding.

Item 6 Ownership of building

Options Frequency Percentage

28
 Self 90 33.3%
Government 128 47.4%
Others 52 19.3%
Total 270 100%
Table 5 Source Field Study

The above table shows that 90 (33.3%) of the respondents revealed that their buildings are
self-owned, 128 (47.4%) of the respondents revealed that their buildings are government
owned while 52 (19.3%) of the respondents revealed that the ownership of their buildings are
owned by other means. This indicates that a larger part of the respondents stated that their
buildings are government owned.
Impact Frequency Percentage
Less than a year 48 18%
1-2 years 62 23%
3-5 years 59 22%
Above 5 years 101 37%
Total 270 100%
Table 6 Length of occupancy in the building

Source: Field survey 2018

From the table above, 48 (18%) of the respondents revealed that they have occupied the
building for less than a year; 62 (23%) stated that they have occupied in the building for a
duration of 1-2years; 59 (22%) of the respondents revealed that have occupied their building
between 3-5years while 101 (37%) stated that they have occupied their building above 5
years. This indicates that the length of occupancy in the building by respondents is above 5
years.
Options Frequency Percentage
Less than ₦ 300,000 59 22%
₦300,000- ₦ 600,000 62 23%
₦700,000- ₦ 900,000 48 18%
Above ₦ 900,000 101 37%
Total 270 100%
Table 7 Annual rent -paid

Source: Field survey 2018

From the table above 59 (22%) agree that the annual rent paid is less than ₦ 300,000; 62
(23%) of the respondents revealed that the annual rent paid is between ₦300,000- ₦ 600,000;
48 (18%) of the respondents revealed that the annual rent paid is between ₦700,000- ₦

29
900,000 while 101 (37%) agreed that the annual rent paid is above ₦ 900,000. This indicates
that the annual rent paid is above ₦ 900,000.
Item 9 Contribution of rental value to urban crisis in Akure

Options Frequency Percentage

Yes 176 65%
No 94 35%
Total 270 100%
Table 8 Contribution of rental value to urban crisis in Akure

From the table, 176 (65%) of the respondents agree rental value has contributed to urban
crisis in Akure while 94 (35%) rental value did not contribute to urban crisis in Akure. This
indicates that rental value has contributed to urban crisis in Akure.

Options Frequency Percentage

High rental 96 36%
value
Inadequate 77 29%
provision of
housing
Poorly 43 16%
maintained
existing houses
Governments 31 11%
policy
Others 23 8%
Total 270 100%
Table 9 Challenges facing the urban developments in your area

Source: Field survey 2018

From the table above 96 (36%) revealed that high rental value is one of the challenges facing
urban development in their area; 77 (29%) of the respondents revealed that inadequate
provision of housing is one of the challenges facing urban housing in their area; 43 (16%) of
the respondents revealed that poorly maintained existing houses is one of the challenges
facing urban developments in their area; 31 (11%) of the respondents revealed that
government policy is one of the challenges facing urban developments in their area while 23
(8%) of the respondents stated that there are others forms of challenges facing urban
development in their areas. This indicates that high rental value is a major challenge facing
urban development.

30
 Options Frequency Percentage
Yes 144 53%
No 126 47%
Total 270 100%
Table 10 Government provision for affordable housing units

Source: Field survey 2018

From the table, 144 (53%) of the respondents revealed government made provision for
affordable housing units while 126 (47%) declined that government made provision for
affordable housing units. This indicates that the contributory effort of government for
affordable housing units is largely recognized by majority of the respondents.

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 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY

This study conducted a research on Appraising the Urban Housing Crisis in Akure
Metropolis, Nigeria. The result of the analysis indicated that high rental value, government
policy, inadequate provision of housing and poorly maintained existing houses are challenges
facing urban development in their areas. The study also revealed that the contributory effort
of government for affordable housing units is largely recognized by majority of the
respondents.

5.2 CONCLUSION

Based on the findings of this research work, “Appraising the urban housing crisis in Akure”,
the Private sector has made an impact in affordable housing provision within the study area,
this is not unconnected with the fact that most of the residential properties were built by
Government and sold to individuals majorly Civil servants. Also, the private sector housing
requirements is fair enough for the property owners especially civil servants within the study
area. It is based on this that all the recommendations were suggested. Although, the
recommendations might not be the automatic solution to housing crisis, but if is well manage,
it might be a turning point in housing affordability and availability.

5.3 RECOMMENDATIONS

In order to ensure affordable and available housing provision, the following

recommendations are hereby presented based on the findings from the research work:

1. Since housing is one of the basic needs of man and the Government has taken it as its
responsibility to provide home for the citizen, in respective of their economic status,
the interest rate charged should be reduced to the barest minimum to make it
affordable to all citizens. In addition to this, there should be social housing for the less
privileged.

32
2. Government should encourage uniformity in the operation of Private housing sector;
the mode of operation should be the same; interest rate charged should also be the
same all over Nigeria.

3. Rather than reducing the number of government housing policy in the country, the
Government should encourage and accredit more housing policy so that the housing
can reach more people.

4. Provision of Infrastructural land/sites and services scheme could be an added

advantage in housing provision. Access to land and public utilities like water,
electricity and roads has been a major constraint to and as such, the government or its
agency provides infrastructural serviced plots for individuals who are then encouraged
to build their own houses or adopt a building design type approved by the
government.

33
 REFERENCES

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the Nigerian Institute of Town Planners (JNITP) 4 & 5: 49-58.

Adediran, P.K. 1984. Ibadan urban sprawl problem: A challenge to urban and regional
planning. Master’s thesis, Urban and Regional Planning, University of Ibadan,
Ibadan, Nigeria.

Adeniyi E.O 1974. The Provision of Housing: - A challenge to Urban Planning and
Development in Africa, Ibadan NISER reprint series 96, Pg 701 – 710

Adeyemo, OA. 1987. Urban-rural planning as a national development strategy. Journal of the
Nigerian Institute of Town Planners (JNITP) 10: 66-74.

Aina, T.A. and O. Taiwo. 1990. Public-private inputs into the provision of urban facilities in
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Anas, A. and K.S. Lee. 1988. Infrastructure investment and productivity: The case of
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Development Department Discussion Paper. World Bank. Also published in Review
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Bascom, W. 1965. Some aspects of Yoruba urbanism. In: Africa: Social problems of change
and conflicts. Pierre L. Van Den Berghe, ed. Chandler Publishing Company, San
Francisco, California.

Buchanan, K.M. and J.C. Pugh. 1955. Land and People in Nigeria. London University Press.

Centre for African Settlement Studies and Development (CASSAD). 1991. Impact of SAP on
Housing and Environment in Nigeria. Report of a pilot study.

Faniran, A. 1991a. Organizational structure of water resources development in Nigeria. Paper

presented at 11th World Water Congress, Rabat, Morocco.

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University Press, Ibadan, 94 pp.

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Housing in Nigeria, NISER, Ibadan 1985 (6) Adeniyi E.O the Provision of Housing: - A
challenge to Urban Planning and Development in Africa, Ibadan NISER reprint series
96, Pg 701 – 710, 1974. (7) Wahab K.A More than shelter, Inaugural Lecture
series 10 University of Ife Ile- Ife Nigeria 1983(8)Kwanashie, M

Housing Problems in Nigeria Cities Onibokun P ed Housing in Nigeria: A book of Reading

NISER, Ibadan Pp 49-63, 1985. (4) Okpala D.C.I

Housing Tenure in Nigerian Housing Policy, - a need for Rethinking of current emphasis,

Publication of Nigerian Association of Housing Corporation Vol. 2 No.1 1985

XXXIII IAHS, September 27 -30 2005, Pretoria South Africa (5) Onibokun P Housing and
Urban Development.

The Urban Question (English Ed.) Edward Arnold. London, 1977 (2) Ogunsakin L

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35
 QUESTIONNAIRE

Dear Sir/Ma,

I am an undergraduate student of Estate Management department of Joseph Ayo Babalola

University, undertaking a research work on Appraising the Urban Housing Crisis in Nigeria
using Akure as a case study.

The study is being undertaken in partial fulfilment of the requirement for the award of
Bachelor Degree of Science in Estate Management.

You will be of a great assistance in the research effort by providing sincere answers to the
questions attached.

Please note that the questionnaire have nothing to do with your personality. Therefore,
absolute confidentiality is guaranteed on every informat8ion given and will be employed only
for academic purposes.

Thanks For your cooperation,

Yours Faithfully,

Olatunji Abraham Tolu.

(1) Gender : Male ( ) Female ( )

(2) Age : less than 26 ( ) 26-35 ( ) 36-45 ( ) above 45 ( )

(3) Marital status: single ( ) married ( ) divorced ( )

(4) Qualification obtained: OND ( ) HND ( ) B.SC ( ) PHD ( ) others

Specified…………….

(5) Occupation ………………………….

36
(6) Types of building being occupied …………………………

(7) Who is the owner of your building? Self ( ) Government ( ) Others ( )

(8) How long have you been occupying the building: less than a year ( ) 1-2 years( ) 3-5

years ( ) above 5 years ( )

(9) What is annual rent paid: less than ₦ 300,000 ( ) ₦ 300,000- ₦ 600,000 ( )

₦ 700,000- ₦ 900,000 ( ) above ₦ 900,000 ( )

(10) What are the effects of urban crisis on the citizen in Akure?

___________________________________________________________________________

___________________________________________________________________________

(11) Has the rental value contributed to urban crisis in Akure? Yes ( ) No ( )

If yes, Specify_______________________________________________________________

___________________________________________________________________________

(12) What are the challenges facing the urban developments in your area:

High rental value ( )

Inadequate provision of housing ( )

Poorly maintained existing houses ( )

Governments policy ( )

37
Others…………………..

(13) Has government made provision for affordable housing units: Yes ( ) No ( )

(14). If Yes in what areas______________________________________________________

___________________________________________________________________________

(15) In your own candid view, what are the ways to manage urban crisis in Akure?

38