Enabling Private Investment in Affordable Housing in Nigeria: Lessons from the Experience of the Millard Fuller Foundation Projects in Nasarawa State

Nwachukwu, Lilian; Rodrigues, Lucelia; Kiamba, Lorna

Abstract

Despite the shift to private sector-driven affordable housing in Nigeria for decades, the housing deficit has continued to increase to the disadvantage of low-income families. This paper explores the enabling strategies for stimulating private-driven affordable housing in Nigeria. A case study of the Millard Fuller Foundation projects was undertaken, and semi-structured interviews were administered to 12 residents of the estates and the developer to explore their experience and highlight the considerations for designing appropriate strategies. The data generated were analysed using thematic analysis with the support of Nvivo. This study identifies four major components of construction costs—land, design, materials, and finance—that policy improvement can target to stimulate private investment. It shows that developers are likely to adopt practices that will reduce these costs with repercussions for end-users. Mindful of this, and the concern to make returns on investment, strategies should aim to harmonise both developers’ interest and that of the end-users through widespread infrastructural development to make land available in all locations, and an incremental owner-building approach so that end-users can take decisions for their housing. Furthermore, access to National Housing Fund (NHF) mortgages should be enhanced by recognising supplementary incomes in the loan origination procedures.

Citation

Nwachukwu, L., Rodrigues, L., & Kiamba, L. (2023). Enabling Private Investment in Affordable Housing in Nigeria: Lessons from the Experience of the Millard Fuller Foundation Projects in Nasarawa State. Journal of Risk and Financial Management, 16(9), Article 411. https://doi.org/10.3390/jrfm16090411

• Journal Article Type: Article
• Acceptance Date: Sep 11, 2023
• Online Publication Date: Sep 14, 2023
• Publication Date: Sep 14, 2023
• Deposit Date: Nov 23, 2023
• Publicly Available Date: Nov 23, 2023
• Journal: Journal of Risk and Financial Management
• Print ISSN: 1911-8066
• Electronic ISSN: 1911-8074
• Publisher: MDPI
• Peer Reviewed: Peer Reviewed
• Volume: 16
• Issue: 9
• Article Number: 411
• DOI: https://doi.org/10.3390/jrfm16090411
• Keywords: affordable housing; private real estate investment; housing market; National Housing Fund; Nigeria
• Public URL: https://nottingham-repository.worktribe.com/output/25391218
• Publisher URL: https://www.mdpi.com/1911-8074/16/9/411