To grow the financial ability of Nigerians and also unseal the dead capital for real estate, crowdfunding has been demanded by finance experts and stakeholders to effectively operate Nigeria’s real estate.
According to them, it will lessen the paucity of housing in Nigeria.
The Centre for Affordable Housing Finance Africa attested to a rough calculation of over $100 billion worth of trapped capital in land that cannot reach access to financing in Nigeria.
Nigeria will be needing about N16 trillion to tackle the downsize of its housing, Lagos particularly will require about $25 billion to solve similar housing challenges.
According to real estate investor and Managing Director of Lifepage Group, Oladipupo Clement, such finance can be gotten via crowdfunding and by 2041, it will create room for about a million homes in Lagos.
Clement further introduced a project-focused and real estate crowdfunding platform created by Lifepage that allows users to make profits in cash and or assets, while the capital sum remains intact.
Unlike the current practice, Lifepage will reduce the record time through crowdfunding.
Feeling contrite about the mortgage practice in Nigeria, Clement advised that the government shunned policies that suppress businesses but encouraged citizens to get acceptable and affordable housing especially the low-class citizens who make up more than 50 per cent of the nation’s housing needs.
Chartered accountant and Coordinator, Million Homes, Mrs. Felicia Omokpo, is of the opinion that crowdfunding is not a recent innovation, but now technology-driven to ensure to give maximum protection to investments.
Also, Peter Adesanya, the Executive Director, Finance and Administration in Lifepage, said crowdfunding gives great investment opportunities for Nigerians to make higher returns in investments both in cash and kind.
“Although there are some kinds of crowdfunding platforms in agro-allied industries, not much has been done in the real estate sector, thereby limiting the huge job potentials that could stimulate the economy.
“We need to build the need of the vast majority by targeting those at bottom of the pyramid by providing low-cost housing”, he said.