Mortgage financing policies needed to make housing more affordable — President, AHCN, Onukwugha

The President, Association of Housing Corporation of Nigeria (AHCN) and CEO of Bauhaus International Limited, Dr. Victor Onukwugha, in this interview with Sonia Samuel, speaks on the essence of appropriate mortgage financing to make housing affordable for the masses, particularly civil servants in the Country, whose income cannot cater for the high prices of housing schemes. He also pointed out ways real estate developers can be assisted. Excerpts:

As the president of AHCN, what are your efforts to   ensure that the civil servants have a housing scheme for shelter?

The civil servants have three categories; the federal, state and local government level. The heads of these categories that is, the president, governors and local government chairmen are the ones to enact policies and programmes for house ownership for civil servants. In each State of the Federation, we have the state and federal housing corporations and private developers, some of which are selected from the members of AHCN. Our own programme is to provide housing; whether the housing corporation or private developers: but if there is a housing scheme from the government, then I will gladly sponsor it through housing corporative. What makes a house affordable isn’t the desire of a developer to build a cheap house, but the desire of the government to create an incentive programme. If a house is built for N1million, 70percent of the civil servants can’t afford it. If the government wants to build a house of N7million for civil servants, they must find a way to subsidise it, alternatively, using mortgage financing. This will help them to gradually pay even if it takes years. Therefore, the main issue we are having is the government not coming up with a political way to ensure houses are affordable to civil servants through developers.

Over the years state governments have been moribund in housing scheme. What is the association doing to change this occurence?

The association are currently striving for policy enactment, mortgage financing, sensitisation on the part of the government, National Assembly to ensure we have mortgage institutions for buyers and have construction loan that will bring down the cost. If we have a development that has a tenure of 5-10years at single digit interest rate, the houses will be more affordable, unlike now where banks give loan for three years at double digits interest rate. We are also working on land use decree. It is a very cumbersome process to get lands and get the titles. The government should make lands easily accessible like some countries do especially to developers. Apart from the estate infrastructure, the developers construct the road down to the estate. As an association, we are doing everything to make sure we have all these.

In recent times, we have been having occurences of building collapse. Do you have a synergy with the Council for the Regulation of Engineering in Nigeria (COREN) to ensure that builders use substantial materials to avoid these collapses? 

Yes, we have been working together. We have formed a building collapse official group where we have architects and all building experts. The issue is a very big one and it emanates from so many angles. The people in the government are no more doing statutory policies. There are so many quacks that are being hired; they even build structural designs and constructions. This is a systemic problem. Also, there are lots of fake materials that are imported all over.

You own an international firm, Bauhaus Consulting Limited. How can you evaluate your activities and achievements in fulfilling its mandate?

As the Executive Chairman of Bauhaus Consulting Limited, we are trying to adopt international best practices leading to estate development. If you go to our estate, you would see the standard, we don’t compromise. We come up with a standard that beats all in terms of design and planning. We also make use of professionals in all aspects even down to land acquisition, construction and supervision.

Every business faces diverse challenges. What are yours?

Land acquisition is a major challenge; getting dedicated staff who would live up to our standard is also a challenge; funds as well, even if we have money to build houses and people don’t have the money to buy, that’s also a problem for us. Then the total corruption in the country and total breakdown of governance, because we need to have infrastructure and security in the estate.

For clients who want to purchase a house. Do they follow any due process?

Yes, they first of all get the form and fill. Then we try to access them. Luckily for us, we haven’t had any untold incidence in our estate. We are particular on who buys our houses. For those who don’t have money to pay up, we give them comfortable payment plan.

What was your Company’s major breakthrough?

Doing the real thing and following due process. We are professionals starting from me to the last person. I’m an architect, I have taught, practised as a consultant, a contractor and so on and for every head of department you must be a guru (expert) in that field.

Your track record has been consistent over time. What is the secret?

This is the only business we do. Hence, the consistency. We are dedicated fully in the business of building environment.