Why Nigeria must pay attention to the growing spate of homelessness
Why Nigeria must pay attention to the growing spate of homelessness
Estimated at about 24 million, Nigeria’s homeless population is currently ranked as the highest in Africa, only followed by Egypt 12million and DR Congo.
According Africa Business Insider, the growing number of homeless populations in most of these these countries is the result of a mix of issues social and economic issues.
Some of these challenges, include rural-urban migration, unemployment, deprivation, poverty, population growth and several other key factors. For Nigeria however, the latest estimate is not entirely new and serves as a reminder of the enormity of the challenge. For example, in 2021 the International Human Rights commission IHRC estimated that more than 28 million Nigerians lack access to decent and affordable housing.
At least three major factors continue to drive the number of homeless populations in Nigeria, they are population growth which has led to rural-urban migration, poverty which is responsible for dwindling household income and inflation which has led to low purchasing power.
Nigeria’s average population growth of 2.6 per cent is one of the fastest-growing populations globally, the population is projected to number over the next 25 years. On Poverty, over 133million Nigerians which is about 60percent of the population are estimated to be in multidimensional poverty, there is no doubt that this situation would have significant impact on urban poverty and household income.
In August 2023, the Nigeria Bureau of Statistics disclosed that Nigeria’s headline inflation had reached an all-time high at 25.8 per cent. The inflation figures followed months of steady rise in inflation figures, the implication is that the cost of services, including food, housing, transportation and other essential services, will also continue to increase.
The most important observation is that the prevailing challenges are linked to the general health of the economy, in effect, if the economy is stable and there is shared prosperity, we are likely to have solved the homeless situation by half. The other part of the challenge is the one that demands key sectoral reform, such as mortgage and land use reforms.
The solution must therefore start with government, for example, addressing poverty requires both the fiscal and monetary instrument to sustainably lift people out of poverty and ensure they have the skills, that can help them to be productive and afford necessities such as housing. The same is for Inflation for which although is largely a monetary challenge, as a core mandate of the Central Bank of Nigeria, but with a fiscal side to it, that also bother on import, export and balance of payment.
On Mortgage and credit reforms, the Central Bank of Nigeria in 2019, note that only 10% of Nigerians who desire to own a home can afford it. When compared to 72% in the United States and 78% in the United Kingdom, the estimate is largely inadequate for the size of our economy.
To achieve an efficient mortgage system all key players from the fiscal, monetary and banking system must be involved to provide support for Nigerians at a single digit and a longer loan tenor that can allow Nigerians to meet their housing need in a way that does not affect their immediate needs. Most developed economies thrive on efficient credit systems. This will incentivize Nigerians who are willing to take advantage of investment in the sector.
Another key policy solution, would be for government to temporary accommodation for those who are not able to afford to rent a home, this is consistent with the practice in other parts of the world, where government ensure that all citizens, irrespective of class, have a cover over their head.
A major aspect of the key sectoral reform, there is a need for the active participation of private sector players, to drive the needed investment in the sector. More than any other time in the country’s history, national and sub-national governments must collaborate and enable the private sector to invest in the housing sector.
The homelessness situation is a challenge that must not be allowed to continue for too long. It is time for all key players to come together, to say never again! Never again should any citizen be left to their own fate. We must urgently work to end homelessness and ensure everyone has a cover over their head, this would be the minimum standard acceptable.
Shobowale is a real estate developer and writes from Lagos State.
