In the high-risk industries where HSSE (Health, Safety, Security and Environment) Management is sacrosanct. A System is used to investigate Near-misses and Accidents and it’s called ROOT CAUSE ANALYSIS. This system is quite effective in going beyond treating surface causes to eliminating the possibility of the accident from where it started, the Root Cause.
The Root cause has a characteristic of not being immediately evident, it has to be dug-out through deliberate and diligent search.
Much has been said about the housing deficit in Nigeria, it has been a persistent conversation and has even become politicized while the present government policies to tackle the menace just seem to scratch the surface with providing any solutions per se.
A typical example is the so called “Low-cost housing schemes” policies by the Federal Government. The Houses are built and the middle-low-income earners are expected to acquire this using mortgage. In reality this is not attainable, because;
The prices for these units rise as the high-net-worth individuals who desire to make a quick buck flipping properties use their cronies within the management of these schemes to acquire vast amounts for a resale in the secondary market. The few units that are left have to be jostled for the actual target market who are then faced with the unavailability of funding to pay for their equity contribution and the financial constraints of the Federal Mortgage Bank of Nigeria. And then the vicious cycle persists, the problem persists.
The aforementioned scenario is a microcosm of what is prevalent in the industry at large, in case you missed it in the narrative the root cause of the housing deficit in Nigeria is the systemic exclusion of the low-middle income earners from the Real Estate Industry.
This exclusion rears its head in several ways, but the two prominent ones are;
- The inability for the low-middle income social class to grow wealth through the real estate sector due to High Entry Points
- Unavailability of Funding for counterpart contribution to access Mortgage
This exclusion and the access to flexible funding for real estate development due to the dependence of the real estate industry on the few High-Net worth individuals and the unwilling finance are responsible for the ever Housing Deficit and it is a vicious cycle that can only be interrupted by a means to get the vast middle-low class in Nigeria to participate in the Real Estate Industry.
This is what REIC from HXAfrica is achieving, REIC is tackling not just the high-entry point by splitting real estate investment into affordable bits but providing a means to exchange their “bits” to cash at any time at the touch of a button
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