SOLUTIONS TO HOUSING PROBLEM

TERM PAPER

ON
ARC412

PREPARED BY

ADEGOKE OLUWASEYI JOHN

ARC/2015/005

SEPTEMBER, 2019
 SOLUTIONS TO HOUSING PROBLEMS

FINANCE RELATED HOUSING PROBLEM.

Economic problems facing consumers and society result from the fact that resources in any
economy are scarce, so it is necessary to choose between the alternative uses to which such
resources could be put. Solutions to these problems therefore consist of allocating finite
resources to satisfying the potentially infinite wants of society

In production and with fixed resources and technology, it will always be necessary to reduce
output of one good or type of goods in order to free resources for increased production of
another good or type of goods.

There’s also Inadequate Access to Finance. According Global Findex (2014), access to
finance increased, from 30 percent in 2011 to 44 percent in 2014, access to loan only grew
from 2 percent to 5 percent within the same period. The concept of mortgage finance is still
not popular in Nigeria due to lack of a robust system. This is solved in America by the
establishement of the US Federal Housing Administration (FHA).

Finance Related Problems can be solved by by re-organizing the Nigeria Federal Housing
Authority into mortgage insurance institution sponsored by the government

LAND RELATED HOUSING PROBLEMS

Land is an important element in Housing Development. Without land, people can not built
any house. As population is continously growing, the demand for land is also growing. On
the other hand total land area is almost constant. Therefore, many land related problems may
be encountered. According to the existing law. land should have a social function, but in
practice land become an economic commodity.

One of the methods that can be used to overcome Land problems in relation to increase in
Land price is to implement large scale land developement, by Local Government owned Land
Development Corporation. In this case the corporation has to acquire a large area of land,
large enough to serve the city / urban development in the next 5 to 10 years or more. Then the
corporation develops the land by constructing the main infrastructure in accordance to the
city master plan. Part of the partially developed land can be sold to private developers to be
further developed as housing projects. Some part can be further developed by the corporation
to ensure the supply of houses to the low income people. By doing so the corporation can also
act as housing price stabilizer.

To prevent problems encountered during the Land Acquisition Process, Government should
consider the possibility of issuing a law or regulation which clearly prohibits squatting and
mentiones that a squatter has no right for compensation when the original or new owner
wants to use the land.