Vice President Yemi Osinbajo has listed some economic viabilities of the Nigerian housing sector, including the reduction of poverty levels and “inclusive growth”.
He said this at the 14the Annual Banking and Finance Conference with the theme, ‘Economic Recovery, Inclusion, and Transformation, the role of Banking and Finance’.
The vice president’s assertion was supported by a survey conducted by the African Development Bank (AfDB) highlighting the many socio-economic benefits of housing for the citizens.
He said, “The housing sector may support poverty reduction and inclusive growth in two general ways. First, housing construction contributes to economic output, creates employment, and generates a demand for materials and related services. Second, improved housing raises the standard of living of occupants.
“That study (AfDB survey) says for example that the benefits of housing for individuals accrue in large part through better health and sanitation, and of course this improves the overall human capacity of our citizens who are able to own these houses.
“Housing also generates large multiplier effects in terms of employment and output. Employment is created for both skilled and poorer, unskilled workers.
“The evidence also suggests that there is a symbiotic relationship between housing finance and financial sector development. Housing finance helps to develop the financial sector itself and helps to contribute to economic growth. So, these were the justifications that we also advanced for our mass housing initiative in the Economic Sustainability Plan.”
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Addressing the role of the financial sector, Osinbajo charged stakeholders to “take on some of the transformative big-ticket items that would fundamentally transform our economy. Such matters include consumer finance but housing finance in particular.”
He added that the finance sector “appears shy or simply has not found the right housing finance model that will work,” in the sector’s involvement in the Mass Housing scheme by the Federal Government.
He called for a synergy between the banking sector and players in the energy sector, calling for a robust partnership that would ensure adequate and long-due electrification of the many darkened parts of the country.
“The challenge of under-electrification of the rural and poor and its associated impacts on our economic well-being and security cannot be overstated. The climate change challenge is a massive one in more ways than we can imagine.
“I would like to encourage the Bankers Committee to refocus on supporting the Solar Power Naija to ensure that in the next few months we can catalyze access to the N140 billion and create 5 million connections that can multiply to eliminating our electricity access deficit and creating jobs,” he stated.
