2016年-世界发展银行全球_Nigeria___Developing_Housing_Finance_54页_2mb

Summary of the Document: Developing Housing Finance in Nigeria

Core Content

This report, commissioned by the Ministry of Finance and conducted by the World Bank Group, provides an in-depth analysis of the housing finance market in Nigeria. It highlights the economic importance of the housing sector, identifies key challenges in the current institutional and legal frameworks, and proposes strategies for improving access to affordable housing and long-term financing.

Main Views and Key Information

I. Introduction

• The report aims to inform policy dialogue on developing a sustainable housing finance market in Nigeria.
• It emphasizes the role of housing finance in stimulating job creation and economic growth.
• The report is based on household surveys, supply-side surveys, and consultations with policymakers and stakeholders.
• It draws on previous World Bank studies and DFID projects to support its findings.

II. Country Context

• Nigeria has experienced stable economic growth of around 8% over the past decade.
• The economy has shifted from oil-dependent to more diversified, with non-oil sectors like construction, real estate, and telecommunications playing a significant role.
• High inflation and unemployment remain major challenges, with the latter particularly affecting the youth.
• The financial system is growing and integrated but lacks capacity for long-term financing, which is essential for housing development.

III. Institutional Framework

• The Ministry of Lands, Housing and Urban Development (FMLHUD) is the central authority responsible for housing policy and delivery.
• The National Housing Policy (NHP) outlines the goal of ensuring access to decent, safe, and affordable housing for all Nigerians.
• The Federal Housing Authority (FHA) is a statutory body under FMLHUD tasked with housing development and management. However, its performance has been mixed, with limited housing units built and challenges in profitability and land acquisition.
• The Standards Organization of Nigeria (SON) collaborates with FMLHUD and other bodies to set standards for building materials and construction technology.
• Federal Mortgage Bank of Nigeria (FMBN) is designed to provide long-term credit funding to mortgage institutions but has not yet fulfilled its role effectively.

IV. Housing Needs

• Nigeria's housing demand is expanding rapidly due to urbanization.
• It is estimated that 700,000 housing units are needed annually to meet demand, but current production is only around 100,000.
• This results in an accumulated housing deficit of 17 million units as of 2013.
• Housing affordability is a major issue, with homes priced at around 340,000 Naira (US$2,000) being out of reach for many.
• Female home ownership is constrained by high fees and transaction charges, and state governments are encouraged to waive these for women.

V. Business Enabling Environment for Housing

• Land ownership is complex, with statutory and customary rights of occupancy.
• The Land Use Act has had limited impact due to implementation issues and lack of clarity in land rights.
• Land registration is costly and opaque, with high fees and a lengthy process.
• Simplifying procedures, digitizing land registries, and reducing costs are recommended to improve the enabling environment.

VI. Mortgage Framework in Nigeria

• The mortgage market is underdeveloped, with short-term financing dominating the banking sector.
• Primary Mortgage Banks (PMBs) and Deposit Money Banks (DMBs) contribute little to mortgage lending.
• The maturity mismatch in the financial system hampers the ability to provide long-term financing for housing.
• Non-performing loans (NPLs) are a concern, though they have improved in recent years.
• The Mortgage Liquidity Facility (MLF) is highlighted as a potential tool to bridge the maturity gap in the mortgage market.

VII. Construction Sector

• The construction sector is crucial for job creation and economic growth.
• It is currently inefficient, with weak organizational capacity, lack of standardization, and limited access to finance.
• The sector is unable to meet the growing demand for housing, especially for lower-income groups.
• Innovative approaches, such as housing cooperatives and incremental building, are seen as viable solutions.

VIII. Financial Sector and Lack of Mortgages

• The financial sector lacks the capacity to provide long-term mortgage financing.
• Short-term customer deposits make up the majority of bank liabilities, limiting the ability to fund long-term projects.
• Macro-economic stability is critical for the development of the housing finance market.
• High interest rates and inflation further reduce affordability and discourage investment in housing.

IX. Housing Microfinance

• Housing microfinance is proposed as a tool to address the needs of lower-income groups.
• It can provide small-scale financing for housing construction and ownership.
• Microfinance institutions are exploring new product offerings to serve different market segments.
• Obstacles include regulatory constraints, limited product development, and lack of awareness among potential beneficiaries.

Conclusion

• The Nigerian housing market has significant potential to drive economic growth and job creation.
• A sustainable housing finance market requires reforms in the legal and institutional frameworks, particularly in land administration and mortgage lending.
• Government intervention is necessary to clarify policy targets, improve access to long-term finance, and support innovative financing mechanisms like microfinance.
• Collaboration between public and private sectors is essential for developing affordable and standardized housing solutions.