Corruption: The Hidden Barrier to Homeownership in Nigeria
In a stark warning, the Nigerian Institute of Quantity Surveyors (NIQS) has shed light on the pervasive corruption within Nigeria's housing and financial sectors, which is eroding the very foundation of the country's mortgage system. This crisis is making the dream of homeownership an increasingly distant reality for many Nigerians.
A Call for Policy Reform
Azeez Ayodabo, the General Secretary of NIQS, has urged the Federal Government to reevaluate its mortgage policies. Speaking at a press briefing during the institute's golden jubilee celebration in Lagos, Ayodabo emphasized the need for more flexible mortgage access. He proposed adjusting thresholds based on income categories, allowing citizens to obtain mortgage loans tailored to their earnings.
Challenges and Solutions
Ayodabo highlighted two key challenges: the lack of information and the deep-rooted corruption within the mortgage system. He explained that while the Federal Mortgage Bank of Nigeria offers long-term mortgage windows of up to 30 years, this information is not widely disseminated. Additionally, corruption allows individuals with government connections to exploit the system, accessing loans meant for the public.
A Historical Perspective
To illustrate the impact of corruption, Ayodabo cited a past incident where developers, after receiving government housing loans, failed to deliver promised three-bedroom bungalows, despite subscribers paying through mortgage deductions. This led the government to take direct control of mortgage applications, highlighting the shared responsibility between the government and citizens.
The Role of Quantity Surveyors
Quantity surveyors (QSs) play a critical role in ensuring cost control and preventing wastage. Ayodabo emphasized the need for their involvement throughout projects, not just for preparing Bills of Quantities. He highlighted how QSs can identify and prevent corner-cutting, ensuring project integrity and accountability.
Infrastructure Development and QS Engagement
Rilwan Balogun, the Chairman of the Lagos chapter, stressed the importance of deeper engagement with quantity surveyors, especially in infrastructure development. He explained that their expertise extends beyond building projects, encompassing civil engineering, heavy engineering, oil and gas, and other major infrastructure sectors.
The Renewed Hope Agenda and Transparency
The current government's Renewed Hope Agenda aims to reposition the economy, but Balogun argued that this goal requires the technical and financial discipline that QS consortiums bring. He cited the Lagos-Calabar Coastal Highway project as an example, where early QS involvement could have prevented issues with inflated costs and lack of transparency.
The Bill of Quantities vs. the Bill of Mechanical and Electrical
Balogun delved into the controversy surrounding the Bill of Quantities (BOQ) and the Bill of Mechanical and Electrical (BME). He emphasized that the globally recognized BOQ, prepared by QSs or cost engineers, is comprehensive and transparent, covering all construction materials. In contrast, BMEs, used only in Nigeria, often lack depth and clarity, leading to cost deviations and wastage. QSs' core responsibilities of cost estimation, valuation, and control are crucial for precision and accountability.
Building Collapse Prevention and QSs' Role
Addressing the issue of building collapses, Balogun clarified that QSs play a preventive role by detailing material specifications and workmanship standards within the BOQ. However, contractors or clients sometimes circumvent these specifications to cut costs, compromising structural integrity. He proposed mandating the submission of BOQs as part of building approval processes to assess both project costs and developers' financial capacity, reducing incidents of substandard constructions.
The Impact of Technology
Femi Falusi, the Deputy Chairman, acknowledged that technology has brought both opportunities and challenges. He expressed concern about the rise of non-QS professionals using QS software to prepare bills of quantities and perform cost estimation roles, intensifying competition within the industry.
Advocating for Policy Change
To address these challenges, Falusi advocated for stronger policy measures. Through initiatives like the DLA, they aim to influence government policy to require that all bills of quantities or cost estimates for building approval be prepared and stamped by registered quantity surveyors. This policy, if enforced, would curb professional encroachment and promote accountability.
Conclusion: A Call for Action
In conclusion, the NIQS has highlighted the urgent need to address corruption and engage the right professionals to ensure a sustainable and accessible mortgage system in Nigeria. By recognizing the indispensable role of quantity surveyors and implementing policy reforms, the country can work towards a more transparent and efficient housing market, making homeownership a reality for all citizens.
