Home Housing Shelter Afrique boss explains the cause of housing deficit in Nigeria

Shelter Afrique boss explains the cause of housing deficit in Nigeria

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Shelter Afrique has attributed Nigeria’s housing deficit to lack of investment data to guide policy making.

Despite this, the firm said it has launched insurance bonds to deliver 1,100 housing units and 5000 jobs in Nigeria.

Managing Director of Shelter Afrique, Mr Thierno-Habib Hann stated this in his presentation at the 17th Africa International Housing Show held in Abuja.

He said the nation’s housing woes are worsened by its land tenure system and land registries and records.

He added that the problem is compounded with low disposable incomes,development risks and ‘diseconomies of scale’ ,’bank appetite to the sector’ and ‘short tenors’.

He said the Nigerian housing challenge is bedevilled with “inadequate laws, inadequate foreclosure laws and lack of effective data to guide investments and policy making”.

Managing Director, Shelter Afrique.
He said with the nation’s large housing deficit due to rapid urbanisation at 53 percent projected to hit 70 percent by 2050 following low supply of housing.

Mr Hann said Shelter Afrique as part of efforts to close the gap launched a N46 billion bond at the capital market.

He said the bond has been over subscribed to N64.3 billion.

“Shelter Afrique’s debut N46 billion bond issuance in Nigeria’s capital market.

“Shelter Afrique has successfully completed its debut 46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its N200 billion (US$481.3 million) bond issuance programme in April 2022.

“The dual tranche bond issuance was 60.7% oversubscribed with the order book peaking at N64.3 billion (US$154.6 million), enabling Shelter Afrique to exercise the ‘green shoe’ option and raise an additional N6 billion (US$14.4 million) more than the original N40 billion plan (US$96.3 million).

The bond issuance attracted participation from a diverse range of institutional investors including pension funds, banks, and insurance companies, supported by an AA rating from GCR Ratings and an A+ rating from Agusto & Co”

He said “the proceeds from the bond issuance are expected to deliver an estimated 1,100 housing units and create an estimated 5,000 jobs in the country. This is a testament to Shelter Afrique’s commitment to supporting Nigeria achieve its social and economic development objectives”.

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