Why it’s difficult to guarantee low-cost housing – Expert

Real estate entrepreneur, Ambassador (Dr) Babatunde Adeyemo, says, “It is extremely difficult for both the state and the federal governments to have a low-cost housing scheme.”

Adeyemo, who is the Chief Executive Officer (CEO) of Pelican Valley Nigeria Limited, said there cannot be low-cost housing estate in an inflation-ridden economy.

He spoke in Abeokuta while appearing on the News File, a monthly interactive programme of the Consolidated Chapel of the Ogun State Council of Nigeria Union of Journalists (NUJ).

Adeyemo said, “It is extremely difficult for both the state and the federal government to have a low-cost housing estate, I’m saying this categorically as a real estate entrepreneur. 

“The reason is that there cannot be low-cost housing estate in an inflation ridden economy because the price of cement in the market cannot be subsidised by the government. There is a limit to what the government can subsidise in building material and the cost of building, the government doesn’t manufacture iron, cement, granite, gravel and sand.

“Getting an affordable house or low-cost housing is very difficult, it is just like you leaving leprosy and treating ringworm.

“The government needs to treat leprosy first, which is inflation, the economy if not we keep on subsidising, but do we have the luxury of funding subsidies? Before you can subsidise you need to have the funds, the funds are meant for infrastructure, education, health, you can’t pack everything and put it in housing, it will be very very difficult, they just have to augment gradually and sometimes…”