About 16 million jobs can be generated, directly or indirectly, every year from development of houses to meet the annual housing demand in Nigeria, estimated to be 2 million units per annum. The country's housing need is currently estimated to be 17 million units, with an additional 2 million units required every year.
Minister of Finance & Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, relying on available statistics, alluded to this during the recent launching of the Nigeria Mortgage Refinance Company (NMRC) in Abuja. She noted that the construction of every new house can generate 5.62 million direct and 2.48 million indirect jobs. "It is not only individual Nigerians that will benefit from the establishment of the NMRC.
The country as a whole will also gain significantly from the unleashing of a sector which has the capacity to transform the entire economy through millions of direct and indirect jobs as well many other ancillary benefits. To appreciate the significance of this, let us consider a few facts.
"Nigeria's significant housing demand has been estimated at 17 million, with an additional 2 million units needed every year. Labour impact assessment studies in countries with similar demographics and economies as Nigeria, estimate that at least 5.62 direct jobs can be generated with every new home, and 2.48 indirect jobs in housing related expenditure. So far, our country is yet to realise this potential.
In 2012, housing, construction, and real estate accounted for only 5.54 percent of our GDP. This figure is low in comparison to many other developing countries. Addressing the housing deficit will have a game-changing impact on our society and our communities.
"Globally, there is a strong consensus that the development of the housing sector is important for stimulating economic growth and job creation in any economy. Indeed, housing construction is one of the most used indices for gauging the economic situation in most developed countries. The Case-Schiller index used to monitor housing starts in the US is a good example.
Likewise, in Malaysia, one of the main contributors to the country's 8 percent per annum three-decade long GDP growth was the housing and construction sectors. New home construction is a major generator of jobs through direct employment in the construction industry with significant multiplier effects on other sectors of the economy. This is the kind of potential that the launch of the NMRC and related initiatives is set to unlock.
"The launch of NMRC and enhanced housing initiative will have significant multiplier effects on many sectors of the economy unleashing jobs for architects, builders, plumbers, welders, carpenters, painters, interior decorators, furniture manufacturing and other allied small scale industries," she stated.
In a related development, Governor Babatunde Fashola said at the first monthly draw for houses under the Lagos State Home Ownership Mortgage Scheme (Lagos HOMS) that maintenance of the houses would provide jobs for estate management firms.
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