Ryan Ezekiel, the visionary behind Zeeks Homes, contends that Nigeria’s staggering housing shortage, now surpassing 20 million homes, stems primarily from systemic flaws in governmental policies, not from any deficiency in the ambition or creativity of private sector developers.
Ezekiel points to exorbitant interest rates, particularly the benchmark Monetary Policy Rate (MPR), as a critical impediment. “The majority of developments must be self-funded because developers simply cannot afford to secure bank financing for real estate ventures. This escalates both the risk and the expense,” he clarified, emphasizing that limited availability of long-term loans curtails the number of rental units and keeps homeownership beyond the financial reach of middle-income families.
The virtual non-existence of a working mortgage market exacerbates the situation, compelling prospective homeowners to pay the entire purchase price upfront. Ezekiel also voiced his disapproval of the ineffectiveness of public-private partnerships (PPPs) in the realm of mass housing. “Mass housing initiatives have devolved into vehicles for personal enrichment for government officials and related entities. Properly structured PPPs would contribute significantly to resolving this issue,” he stated, further noting that exorbitant land prices render affordable housing projects economically unsustainable.
Cumbersome bureaucratic processes, inconsistent regulations, and duplicative taxation further discourage investment. Ezekiel cited issues like protracted approval timelines, arbitrary demolitions in major metropolitan areas, and onerous stipulations such as Abuja’s requirement for payment of the Certificate of Occupancy within 21 days.
To remedy the crisis, Ezekiel implored the government to stabilize its fiscal policies, curb inflation, lower the costs of construction materials, and institute authentic, transparent PPPs. “Should these reforms be enacted, we could witness an increase in first-time homebuyers and a substantial decrease in our housing deficit,” he concluded.
