Nigeria’s mortgage system is being undermined by pervasive corruption in the housing and financial sectors, making homeownership increasingly unachievable for many individuals, according to a warning from the Nigerian Institute of Quantity Surveyors.
In order to achieve this, Azeez Ayodabo, General Secretary of the Nigerian Institute of Quantity Surveyors, has called on the Federal Government to examine its mortgage system rules.
In honor of the Nigerian Institute of Quantity Surveyors’ golden jubilee celebration, he made this call during a news conference held at the Lagos Chapter.
“To make mortgage access more flexible, the government should review its policies,” he stated. Income categories should be taken into account while setting thresholds. Mortgage loans should be available to people according to their income. For example, a level six or level seven civil servant should not be expected to purchase a three-bedroom maisonette that the government advertises. It is not feasible. Bungalows, apartments, terraces, and duplexes should all be included in housing designs so that residents can select the type that best suits their budget. In this manner, everyone, not just the wealthy, benefits from it. Lack of knowledge is another problem. Depending on the applicant’s age and income, the Federal Mortgage Bank of Nigeria offers long-term mortgage windows of up to 30 years; however, this information is not commonly accessible. The mortgage system has also been severely damaged by corruption. A lot of people take advantage of official connections to obtain public loans.
Thus, the mortgage system has been undermined by corruption. For example, between 2006 and 2009, developers who were granted government housing loans were required to construct and market three-bedroom bungalows for N7.5 million. Even after subscribers began making payments through mortgage deductions from their jobs, many instead misappropriated the money and neglected to deliver the homes. The government was forced to discontinue that method and assume direct supervision over mortgage applications as a result. Therefore, citizens too have a part to play; the government is not only to blame.
This is where we argue that hiring quantity surveyors is necessary when it comes to affordability. One of the most common mistakes committed nowadays is hiring QSs for a portion of a project, solely to create the Bill of Quantities, and then excluding them later. Waste and a lack of cost control result from this. In order to guarantee quality and avoid corner-cutting, the QS is essential. For example, a quantity surveyor on site can detect it through valuation and documentation checks if the contractor replaces the specified 16 mm reinforcement with a lower grade. This guarantees project integrity and fosters accountability. The quantity surveyor has a broad and essential responsibility. Therefore, we implore the public and the government to acknowledge and include the appropriate specialists in their proper roles.
The chapter’s chairman, Rilwan Balogun, discussed the value of quantity surveyors and pointed out that they needed to be involved more deeply, particularly in infrastructure.
advancement.
“Too often, their expertise is limited to building projects, while enormous opportunities exist in heavy engineering, civil engineering, oil and gas, and other major infrastructure sectors,” he clarified. The call to action is for increased participation since government and private clients may assure economic efficiency, provide value for money, and foster transparency by forming consortiums.
“The Renewed Hope Agenda of the current government aims to reorient the economy, but without the technical and financial discipline that QS consortiums bring, this goal cannot be realized. Early QS engagement is crucial from design to execution, as seen by the debate surrounding projects such as the Lagos–Calabar Coastal Highway. Consortiums could have prevented problems with exorbitant expenses and a lack of openness if they had been involved from the beginning. The crucial checks and balances that guarantee cost control and accountability are lost when engineers are the only ones who plan, estimate, and carry out the work.
The continuous discussion between the Bill of Quantities and the Bill of Mechanical and Electrical also reflects this imbalance. The BOQ, created by a quantity surveyor or cost engineer, is the internationally recognized document; the BME, which is solely utilized in Nigeria, is not. While BMEs frequently lack depth and clarity, a properly produced BOQ is thorough, complete, and transparent, detailing every nail, bolt, and reinforcement required for construction. While BME documentation can result in significant differences and waste, the BOQ guarantees accuracy and restricts cost fluctuation to roughly 5%. Therefore, it is important to emphasize that the primary duties of a quantity surveyor are cost estimation, appraisal, and control.
The idea that quantity surveyors have no part in the problem of building collapse is incorrect. By outlining material specifications and workmanship standards within the BOQ, QSs really serve a preventive role. Sadly, in an effort to save money, contractors or clients may get around these requirements by utilizing inferior materials or fewer reinforcements, which ultimately compromises structural integrity. As a result, the government ought to require BOQs to be submitted as part of the construction approval procedure. This would lessen the number of abandoned or subpar building projects by enabling authorities to evaluate not only the project’s cost but also the developer’s financial ability to carry it out. QSs’ essential role in guaranteeing quality and safety in the built environment is further confirmed by their inclusion in the Building Collapse Prevention Guild.
The Deputy Chairman, Femi Falusi, pointed out that the difficulties become more complicated with the introduction of technology.
“As my chairman correctly stated, many allied professionals now believe they can perform the work of QSs due to the advancement of technology,” he stated. As a result, our professional space has been widely invaded. Since QS software is now available, some non-QSs try to do cost estimation tasks and create bills of quantities using it. Because there are now more professionals and outsiders vying for fewer open positions, the competition has increased.
We are pushing for more robust legislative measures to address this. Our goal is to change government policy such that all bills of quantities or cost estimates submitted for building approval are required to be completed and stamped by a registered quantity surveyor through programs like the DLA. Enforcing such a policy will assist assure responsibility and prevent professional intrusion.
Lastly, we acknowledge that technology is here to stay as we look to the future. It presents opportunities as well as difficulties. To improve their professional competence and stay relevant in this changing business, we at the chapter level continue to urge our members to upskill, embrace innovation, and utilize digital tools.
