Public-Private Partnership (PPP) as a Mechanism for the Provision of Affordable Housing Delivery in Nigeria

Abstract

The international community recognises that increasing the provision of affordable housing is one of the major development challenges of the twenty-first century. This challenge is even more severe in developing economies with high population such as Nigeria, where the government has tried a variety of housing initiatives to help address the challenge but to relatively very little effect. One of the recent initiatives involves the use of Public Private Partnership (PPP). Unfortunately, the strategy used to date does not accurately reflect what is needed to stimulate and broaden housing provision (NHP, 2012). This thesis sought to understand this major policy issue by examining how an effective PPP approach could assist in increasing affordable housing delivery. The dearth of affordable housing is a national concern, with the federal government of Nigeria estimating that there is a deficit of 23 million houses in Nigeria (FGN, 2013). The aim of this study is to develop a PPP framework for the implementation of affordable housing delivery in Nigeria. To do this, the research develops a framework based on five components: capacity development, operating environment, project development, project financing and government commitment. The research also uses the Institutional Analysis and Development (IAD) Framework to analyse and initiate housing policy reform for PPP arrangement. The IAD Framework helps to understand key variables and the process to evaluate the effectiveness of using PPP as a mechanism for affordable housing delivery in Nigeria. The research was based upon in-depth literature review and primary data collection using semi-structured interviews with various practitioners in the public and private sectors using PPP for housing delivery in Nigeria. The research provides further evidence on constraints that are hindering the effectiveness of PPP on affordable housing delivery in Nigeria, including lack of regulation guarantee, poor financial projections, poor feasibility assessments, poor communication, inadequate financial resources, project cancellation and contract renegotiation etc. PPP needs to develop a clear statement of objectives for affordable housing delivery, well-communicated strategy, a clear institutional framework, independent oversight, sustainable financing mechanisms and allow flexibility for implementation in order to mitigate these constraints. In addition to providing the basis for more effective housing policy, the research develops a PPP model for affordable housing delivery. These findings could assist in developing effective tools to enhance the process, build appropriate institutions and legal system for a fairer and more transparent environment to facilitate the private sector involvement in affordable housing delivery in Nigeria.

Date of Award	Jun 2016
Original language	English
Awarding Institution	University of Brighton