By Mimidoo Patrick
Chairman, Value Chain Project Consultants Ltd, Off-takers Affordability National Strategy for COVID-19 Era Housing Delivery in Nigeria, Dr. Joshua Aloaye Egbagbe, said the housing sector may never recover from the effects of COVID-19 pandemic unless the federal government provides ‘substantial support’ to the industry.
Egbagbe, who stated this during an interview with Viewpoint Housing News in Abuja, noted that the sector has been worst hit by the pandemic and this may last for more than two years if drastic measures are not taken by government.
The expert urged the federal government to urgently adopt measures to protect and stimulate the housing sector.
“With airports been shut, airlines grounded and millions of jobs lost across the globe, the housing sector has been by far the worst hit by the pandemic.
He appealed to government to ensure that the sector is the first in line to receive substantial support.
Egbagbe said government should make it a point of priority to get seriously involved in financing and structuring of housing projects to enable the sector recover from the impact of the pandemic.
“They should get into agreement with FMBN, World Bank, pension administrators and the CBN to design a special global strategy. This has to be a radical approach involving key stakeholders in the housing sector.
This is due to the fact that a careful analysis of the COVID-19 pandemic indicates that it might not go away any time soon and that will affect the housing sector a great deal.
”Specifically, COVID-19 may last up to two years and of course, when there is no international travel, investors will not be readily available to invest into the sector.
“In strategizing, you must have a long term plan that is in line with your goal so that you can achieve the set goal irrespective of the circumstances.
“Therefore, government must begin to look inward and come up with solutions that are workable in Nigeria because what works in the United States of America cannot work here the challenges confronting the two countries are different so the approach must equally be different.
”Like I said earlier, the COVID-19 influence is not going away anytime soon due to foundational issues and this has affected the economy globally”
The chairman said a delay or failure to intervene could sink the key sector of the nation’s economy.
He said in order to revive the struggling sector, a properly repositioned on the path of global best practices and generate substantial funds to soften the blows of the rampaging COVID-19.
According to him, “one of the big lessons of the pandemic is that Nigeria needs to look inward and come up with policies that are workable to boost the sector.
He said while various sectors of the economy are undergoing gradual restoration of services, the housing sector has remained the same.
“This strengthens the case for a more sizable stimulus package for housing businesses. Otherwise, the sector ‘as we know it’ may never recover,” he added.
While commending the federal government for its management of the pandemic, Egbagbe stressed the need for more to be done to support businesses, especially those in the real estate as everyone needs a home to live in.
“The industry is in a desperate and dire situation. What is needed urgently is a massive, well-considered financial support to cushion the losses being suffered by the housing sector.
“It is also imperative to initiate measures that will stimulate businesses that are on the verge of closing down and restore jobs that are set to be lost.”
He called for prompt and effective action, as well as the release of funds to developers in order to resuscitate the sector promptly.
