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Abstract
Prior to 1970, finance was assumed to be the only constraint on the supply of housing in Nigeria. It was thought that if the government could endow the housing sector with sufficient funds the number of housing units produced would meet the demand. Revenue from the petroleum industry in the 1970s provided the capital to test this assumption. The assumption was shattered in the mid-1970s when it was found that increased government investment in the housebuilding industry had served as an invitation to amateur contractors, and had raised the costs of construction and wages, but had had a minimal effect on the quantity and quality of housing.
This study identifies and analyzes problems which militate against the increased supply of housing units in the case study area: Osogbo, Nigeria. Small firms, which predominate in Osogbo, were found to be unable to fulfill their contracts on schedule, hampered by a work force that is inadequate both in numbers and training and caught up in organizational inefficiencies; these problems cause high transaction costs (which ultimately determine the final cost of housing). Three factors are shown to affect the management capabilities of Osogbo building firms: education, experience in the industry, and kinship affiliations.
The shortage of skilled artisans may be the most critical problem facing the industry in the 1980s. The apprenticeship system, which at one time supplied the bulk of artisans for the industry, has fallen into disuse and has lost its attraction for the young. The newly conceived alternative--a refurbished technical secondary education system--contains many contradictions and has not solved the problems associated with technical education in the past.
Two sets of policy recommendations are offered: one, a restructuring of the housebuilding industry that will significantly reduce transaction costs; second, a revitalization of the apprenticeship system using it as a supplement to the technical education program.