THE EVENT TO GROW YOUR CONSTRUCTION BUSINESS IN NIGERIA

1. THE EVENT TO GROW YOUR • CONSTRUCTION BUSINESS • IN NIGERIA • Welcome to the CPD certifiedprogramme • 9 - 11 September 2019

2. Presentation Title • HAS YOUR BADGE BEEN SCANNED? Attendance certificates are available only to attendees who have been scanned within the first 30 minutes of this session. Head over to the scanner at the entrance of this workshop theatre if your badge was not scanned. Certificates will be available for collection in two hours and can be collected at the cpd certificate collection point. Speak to a member of the staff for more information

3. Presentation Title SPEAKERS: ‘DeboAdejana MD/CEO, Realty Point Limited TOPIC: Challenges and Opportunities of Investments in Nigeria Affordable Housing Market; *An attempt at the definition of affordability *The constituents of affordability *Industry self help as an answer to affordability TIME: 2.00pm – 2.45pm

4. Presentation Title Presentation Title • TOPIC TEXT Nelson Mandela had this to say when describing his house in Orlando West, Soweto in his book, Long Walk To Freedom: “It was the opposite of grand, but it was my first true home of my own and I was mightily proud. A man is not a man until he has a house of his own.”

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7. Presentation Title Presentation Title • TOPIC What is to be considered affordable housing? Affordability mean different things to different people, generally Speaking, it refers to the ability of a household to pay for a house by way of rent or mortgage TEXT The 4 most accepted attempts at defining affordability: • Expenditure-to-income Benchmark approach • The concept of housing affordability is measured by the income and expenditures of a household to pay for the price or rental of a house. The expenses allocated for buying a house is 30 percent of household monthly income.

8. Presentation Title Presentation Title • TOPIC What is to be considered affordable housing? Cont’d • The origin of the standard can be traced back to an old aphorism that one should devote “a week’s wages to a month’s rent,” which itself is based on studies of what typical families spent on housing going back to the late 1800s. The notion was that if housing accounted for more than this share of income, there would not be enough left over to pay for life’s other necessities. This 25 percent of income standard was incorporated into laws for federal housing assistance programs in the 1960s and 1970s. However, in the early 1980s, new legislation increased the standard to 30 percent for most programs. Since then, the 30 percent of income measure has been the norm for defining housing affordability. TEXT Source: Joint Center for Housing Studies of Harvard University (September 2018)

9. Presentation Title Presentation Title • TOPIC What is to be considered affordable housing? Cont’d • 2. Residual income approach • The residual income approach to housing affordability is one that looks at what different household types can afford to spend on housing after taking into account the other necessary expenditures of living. • The other necessary expenditures of living covering feeding, transportation, basic clothing, energy, etc TEXT

10. Presentation Title Presentation Title • TOPIC What is to be considered affordable housing? Cont’d • 3. Rent Vs Mortgage Repayment Approach • To determine if housing is affordable, rent and mortgage repayment are expected to be at par or better still mortgage periodic repayment should not be greater than rent TEXT

11. Presentation Title Presentation Title • TOPIC What is to be considered affordable housing? Cont’d • 4. Incremental approach • This is better illustrated with the example given by TayoOdunsi in his book titled “Affordable, thinking critically and differently about affordable housing”(2018) • ...say you need to build a house for $100,000 over 12month period, and all you can afford at the time is 30%, which is $30,000. If you start the development with the #30,000 in your account and expend it over three months, by month four your affordability level is no longer 30%; it is now 0%. In reality, at that point, you may have saved up some additional cash; for example, $700. Consequently, what you can afford now is 10% ($700 is 10% of the $70,000 required to complete the development) TEXT

12. Presentation Title Presentation Title • TOPIC TEXT Source: Tackling the Housing Affordability Challenge(Abuja)-Pison Housing Company

13. Presentation Title Presentation Title • TOPIC TEXT Source: Tackling the Housing Affordability Challenge(Lagos)-Pison Housing Company

14. Presentation Title Presentation Title • TOPIC The Housing Affordability Mix • Public Sector • This is made up of Government and all related/concerned Government Parastatals TEXT

15. Presentation Title Presentation Title • TOPIC • The Housing Affordability Mix cont’d • Private Sector • We have the Developers, Financiers and Investors on one part and • The Built Industry Professionals made up of Builders, Architects, Surveyors, Lawyers, Agents, Engineers and Planners on another part TEXT

16. Presentation Title Presentation Title • TOPIC • The Housing Affordability Mix cont’d • Community • This most times include the Traditional Land Owning families popularly calledOmo-Oniles, the existing neighbourhood, the new/nuclear neighbourhood in which the project is being developed TEXT

17. Presentation Title Presentation Title • TOPIC • The Housing Affordability Mix cont’d • The Target Individual • YOU TEXT

18. Presentation Title Presentation Title • TOPIC • Challenges in Nigeria’s Social Housing Space 1. Access to land and dependability of title • 2. Access to supply and demand Financing • 3. Dearth of quality and quantity of Workmen 4. Bureaucratic bottlenecks and the cost of processing titles and approvals TEXT

19. Presentation Title Presentation Title • TOPIC • Opportunities in Nigeria’s Affordable Housing Space TEXT 1. This is a N60trillion(US$300billion) market opportunity! The sheer size of the deficit is a great opportunity. The market is said to have between 17m to 21m housing deficit estimated at about $300billion. That is in addition to the 1,000,000units($16billion) of housing that must be produced yearly so as not to further widen the deficit. Strategies, means and methods of turning latent demand into effective demand

20. Presentation Title Presentation Title • TOPIC • Opportunities in Nigeria’s Affordable Housing Space cont’d 2. Targeting the part of the population that is unbanked (36.9 million adults or 39.5% of the adult population): Providing innovative housing financial products and services to the under and un-banked represents a large business opportunity for the private sector. For example; microfinance housing or incremental housing finance TEXT

21. Presentation Title Presentation Title • TOPIC • Opportunities in Nigeria’s Affordable Housing Space cont’d TEXT 3. Offering alternative building materials: The market relies on cement as the primary building material (construction with sand creteblocks makes up 90 percent of the construction market. There is a growing market for alternative building materials as they are more cost-efficient and more time-efficient while –depending on the material used -potentially being more energy-efficient as well.

22. Presentation Title Presentation Title • TOPIC • Opportunities in Nigeria’s Affordable Housing Space cont’d • 4. Strengthening the local construction industry will lead to • increased job creation as well as skills development. • Vocational training, certification and job sourcing initiatives • 5. High reliance on imported construction components (90 percent • including electricity are imported) hinders the local building industry • to develop. • Affordable building design standardization & mass production TEXT

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24. THANK YOU! • IF YOUR BADGE WAS SCANNED IN THE FIRST 30 MINUTES OF THE SESSION, YOUR CERTIFICATE WILL BE READY AT • THE CPD COLLECTION POINT IN TWO HOURS TIME