IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The Real Estate sector ores a great potential source of growth for Nigeria. Until now, the understanding of its composition and growth has been somewhat
limited to its required use in Nigerian national accounts. Development is a general word that encompasses all aspects of human life, segments and
disciplines, which give direction to the state of an economy. Globally, real estate sector is one of the most profitable ventures of every economy and one of
the indices of measuring economic growth of a society. It is a sector that mirrors the economic viability and sustainability of an economy and its poverty level.
Though there was no accurate data about housing shortage in Nigeria, it was however estimated that the shortage has risen to over 17 million (Ebie, 2005).
Successive governments over the years have attempted to resolve these shortages with various policies but rather than reducing, the shortages kept
increasing year in year out.According to Ajanlekoko, 2001, the Federal housing agencies located in each state of the federation, were statutorily created to
execute public housing programmes for each state of the federation based on the formulated housing policies.
Specifically they are to undertake the development of estates by acquiring, developing, holding, managing, selling, leasing or letting any property movable or
unmovable in their respective states; provide a home ownership saving scheme in respect of any housing estate or building owned, constructed and
managed by them with a view to enabling members of the public purchase or build their own houses; provide sites and services scheme for residential,
commercial and industrial purposes for the people of their respective states; construct and maintain modern dwelling houses at reasonable costs for sales to
members of the public, undertake the construction of oices,
commercial and industrial buildings for letting out to members of the public among other
things, engage in other investment activities and opportunities as may be determined by the respective state governments. If there has been eective
implementation of housing policies, all these would have significantly benefitted the masses and above all contributed to the growth of the nation’s economy
as a result of profit made from sales and rents. Unfortunately however, most of the state housing agencies are under-utilized and have been rendered
redundant and could hardly carry out their primary responsibility as elaborated in the respective laws setting up these agencies (Zubairu, 2001). Basically,
the problems of housing delivery in Nigeria are rooted in three major factors namely lack of finance, escalating cost of building materials and infrastructural development cost.
