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Tag: affordable housing

  • Ministry, Airforce to partner on affordable housing

    Ministry, Airforce to partner on affordable housing

    The Federal Ministry of Housing and Urban Development (FMHUD), has collaborated with the Nigerian Air Force to provide affordable housing for its personnel.

    The Minister of Housing and Urban Development, Ahmed Dangiwa, stated this during a courtesy visit by the Chief of Air Staff, Air Marshal Hassan Bala Abubakar, to the Ministry in Abuja.

    This was disclosed in a statement by the Director of Information and Public Relations, FMHUD, Badamasi Haiba, on Thursday.

    Dangiwa stated, “As the Ministry of Housing and Urban Development, we recognise the importance of providing suitable housing for members of the Nigerian Air Force. We assure you our commitment to working with you towards meeting the needs of our Air Force.”

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    The partnership is part of the Ministry’s Renewed Hope Housing Agenda, launched by President Bola Tinubu, which aims to provide 50,000 affordable housing units nationwide.

    Dangiwa also offered the National Housing Programme estate in Bauchi to the Nigerian Air Force at a discounted rate, with instalment payments.

    He directed the Permanent Secretary to coordinate an assessment tour of the NHP site in Bauchi to facilitate a speedy process of acquisition.

    The Chief of Air Staff, Air Marshal Bala Abubakar, commended the Minister for his achievements and requested collaboration on providing affordable housing for Air Force personnel.

    Also,  he asked that the completed housing units by the ministry in  Bauchi State should be sold at a discounted rate with friendly payment terms to the Air men citing its potential to enhance the operational readiness of the force.

  • Delivering renewed hope agenda in affordable housing

    Delivering renewed hope agenda in affordable housing

     In Nigeria, housing scarcity persists, with over 22 million units needed. The Federal Mortgage Bank of Nigeria (FMBN) aims to bridge this gap. Under new leadership, led by Mr. Shehu Osidi, the FMBN prioritises technological innovation, financial stability and stakeholder engagement to enhance housing access. With unique housing products like the National Housing Fund (NHF) Mortgage Loan, Rent-To-Own, and Home Renovation schemes, the FMBN embodies hope for affordable housing solutions nationwide as envisioned by President Bola Tinubu. Associate Editor ADEKUNLE YUSUF reports

    In Nigeria, as in many regions worldwide, housing stands as a cornerstone of basic human needs and a pivotal factor influencing both individual well-being and broader socio-economic advancement. Despite its paramount importance, millions of Nigerians grapple with a stark reality: inadequate access to suitable housing. This predicament manifests in various forms, from outright homelessness to inhabiting substandard living conditions.

    According to the World Bank, Nigeria confronts a staggering housing deficit, with an estimated shortfall exceeding 22 million housing units. This disparity continues to escalate, propelled by rapid urbanisation, population expansion and insufficient investment in housing infrastructure. The repercussions of this shortfall extend far beyond individual households, permeating the nation’s economic landscape and social cohesion. The ramifications of inadequate housing are profound, fostering overcrowding, the proliferation of informal settlements and the rise of slums. These conditions not only exacerbate issues of poverty, inequality and social exclusion but also impede efforts to foster sustainable development.

    The United Nations Human Settlements Programme underscores the indispensable role of housing in achieving sustainable development objectives, emphasising its interconnectedness with health, education, employment and environmental stewardship. In Nigeria, the dearth of adequate housing undermines progress toward these pivotal goals, perpetuating cycles of impoverishment and marginalisation. Furthermore, inadequate housing conditions pose significant health risks, with millions of Nigerians residing in substandard dwellings lacking essential amenities such as clean water, sanitation, and electricity. This situation underscores the urgent need for governmental intervention and policy reforms to ameliorate the state of housing in Nigeria.

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    Despite various initiatives aimed at addressing the housing deficit, progress has been sluggish, impeded by a myriad of challenges. These obstacles include limited access to financing, land tenure issues, inefficient regulatory frameworks and institutional capacity constraints. Addressing these challenges demands coordinated efforts from both the federal and state governments, alongside collaboration with the private sector, civil society organisations and international development partners. Only through such concerted actions can meaningful strides be made towards ensuring adequate and sustainable housing for all Nigerians. Addressing this housing crisis is imperative for fostering inclusive growth and securing a brighter future for all Nigerians.

    The Federal Mortgage Bank of Nigeria (FMBN)

    One pivotal institution poised to spearhead efforts in addressing Nigeria’s housing crisis is the Federal Mortgage Bank of Nigeria (FMBN). Tasked with promoting the delivery of affordable housing finance, the FMBN holds the potential to drive investments in the housing sector, facilitate access to mortgage financing and bolster the development of affordable housing projects nationwide. Yet, to fully realise its potential, the FMBN requires adequate funding, operational efficiency enhancements, and increased transparency. The appointment of Mr. Shehu Osidi as the new Managing Director of the FMBN marks a significant juncture in the institution’s trajectory. With a wealth of experience and a distinguished track record in the financial sector, Mr. Osidi brings fresh perspectives and renewed vigour to the helm of the FMBN. His appointment signals a dedication to ushering in a new era of innovation, efficiency and accountability within the organization.

    Under Mr. Osidi’s stewardship, the FMBN’s new management team has embarked on a bold and ambitious agenda aimed at revitalizing the bank’s role in Nigeria’s housing sector. Recognizing the gravity of Nigeria’s housing crisis and the imperative for swift action, the management team has crafted a comprehensive roadmap to confront the myriad challenges confronting the housing sector. Central to this agenda is a steadfast commitment to harnessing technology to drive operational efficiency and elevate customer experience. The management team recognises that in today’s dynamic digital landscape, technology serves as a linchpin for streamlining processes, trimming costs and enhancing service delivery. By leveraging digital platforms and automation tools, the FMBN aims to simplify and expedite the mortgage application process, ensuring accessibility and transparency for prospective homeowners.

    Furthermore, the management team remains resolutely focused on fortifying the FMBN’s financial standing and bolstering its capacity to mobilise resources for housing finance. This entails initiatives to enhance credit quality, curtail non-performing loans, and explore innovative financing mechanisms to extend affordable housing finance to underserved demographics. Through sound financial stewardship and strategic partnerships with financial institutions and development agencies, the FMBN seeks to optimize its resources and amplify its impact in combating Nigeria’s housing deficit. In tandem with financial reforms, the management team is committed to enhancing the FMBN’s operational efficacy through refined project management practices and robust performance monitoring systems. By arming personnel with requisite skills and tools to execute projects punctually and within budget, the FMBN aims to bolster its reputation as a dependable and efficient housing finance provider.

    Moreover, the management team underscores the pivotal role of stakeholder engagement and collaboration in steering sustainable change within the housing sector. Through nurturing alliances with governmental bodies, real estate developers, community organizations, and other pivotal stakeholders, the FMBN endeavours to cultivate consensus and galvanise collective action to address the underlying causes of Nigeria’s housing crisis. As the Federal Mortgage Bank of Nigeria (FMBN) undergoes transformative reforms under the visionary stewardship of Mr. Shehu Osidi, the institution not only revitalises its operational prowess but also amplifies its capacity to furnish affordable housing solutions to Nigerians. At the heart of this initiative lie the bank’s array of distinctive affordable housing products, meticulously crafted to cater to the varied needs of aspiring homeowners nationwide.

    The National Housing Fund (NHF) Mortgage Loan

    One of the flagship housing products offered by the FMBN is the National Housing Fund (NHF) Mortgage Loan, which provides eligible contributors with access to long-term mortgage financing at single-digit interest rates. The NHF Loan stands out in the market due to its favorable terms, including extended repayment periods of up to 30 years and 6 percent interest rates, making homeownership more accessible and affordable for low and middle-income earners. Loans under N5million attract zero equity down payment while loans ranging from N5m-N15 attract and a contributor is qualified to apply after only six months of continuous contributions to the scheme. The terms and features of the NHF Mortgage loan are unbeatable in the market.

    For comparison, interest rates on housing loans in the open market range from 18 percent to 25 percent per annum while maximum loan repayment tenors hover between 10 – 20 years. Most commercial banks and mortgage lenders would also require that applicants provide between 30 percent to 50 percent equity contribution before loans are processed and possibly approved for disbursement.

    Rent-to-Own Product and Home Renovation Loan

    In addition to its suite of housing products, the Federal Mortgage Bank of Nigeria (FMBN) offers the innovative Rent-To-Own Housing Scheme, representing a groundbreaking approach to homeownership for Nigerian workers. This scheme provides an easy and convenient payment arrangement that enables individuals to transition from renting to owning their homes, thereby fulfilling their homeownership aspirations.

    The FMBN Rent-To-Own Housing Product offers a unique opportunity for Nigerian workers to instantly move into an FMBN-owned housing property as tenants and conveniently pay towards ownership of the property in monthly or annual installments over a period of up to 30 years. This flexible payment plan is designed to accommodate the financial circumstances of aspiring homeowners, allowing them to spread the cost of homeownership over an extended period while enjoying the benefits of residing in their own homes.

    One of the key advantages of the Rent-To-Own Housing Product is its affordability, with an interest rate of 9% over the repayment period. This competitive interest rate ensures that monthly or annual installments remain manageable for participants, making homeownership accessible to a broader segment of the population. By providing a path to homeownership that is both affordable and sustainable, the FMBN empowers Nigerian workers to achieve their dream of owning a home without experiencing undue financial strain.

    Moreover, the Rent-To-Own Housing Scheme offers participants the opportunity to enjoy the benefits of homeownership from the outset, including the security and stability of owning their own homes. By moving into an FMBN-owned housing property as tenants, individuals can begin building equity in their homes while enjoying the comfort and convenience of living in a property that meets their needs and preferences.

    Another innovative product offered by the FMBN is the Home Renovation Loan, designed to enable homeowners to undertake renovation and improvement works on their existing properties. This product addresses the pressing need for housing maintenance and upgrades, allowing homeowners to enhance the quality and value of their homes without the financial burden of upfront costs. With flexible repayment options and competitive interest rates, the Home Renovation Loan empowers homeowners to invest in the upkeep and modernization of their properties, contributing to the overall enhancement of the housing stock in Nigeria.

    Cooperative Housing

    Development Loan and Individual Construction Loan

    Furthermore, the FMBN offers the Cooperative Housing Development Loan, tailored to support cooperative societies in the development of affordable housing projects for their members. This unique product leverages the collective strength and resources of cooperative societies to finance the construction of housing units, thereby reducing individual financial burdens and promoting community-based homeownership initiatives. By facilitating the formation and operation of housing cooperatives, the FMBN empowers communities to take ownership of their housing needs and drive grassroots development initiatives.

    In addition, the Federal Mortgage Bank of Nigeria (FMBN) offers the Individual Construction Loan, a specialized financing solution designed to support individuals in the construction of their own homes. This product caters to the unique needs of aspiring homeowners who prefer to build their homes from scratch or undertake significant renovation and expansion projects.

    Specifically, the loan enables NHF contributors with unencumbered land, appropriate land titles, and approved building plans to undertake self-construction. The loan provides up to N15million to contributors to the National Housing Fund (NHF) scheme at a 7 percent interest rate. Beneficiaries can pay over a period of up to 30 years depending on their age and the number of years left in service. By providing access to long-term financing with favorable terms, the FMBN empowers individuals to realize their homeownership aspirations and invest in the construction of quality, sustainable homes for themselves and their families.

    The spirit of creativity and dynamism which Osidi has brought to the nation’s foremost mortgage institution aligns perfectly with the renewed hope agenda of the Bola Ahmed Tinubu Administration. On assumption of office, President Tinubu made it clear through his Renewed Hope Agenda to give Nigerians hope with regards to housing provision, kicking the ball rolling with strategic actions. From demerging the Ministry of Works and Housing and creating a new Ministry of Housing and Urban Development, to strategic appointments of experts to the new ministry, to larger housing budgetary allocations as well as continuously re-echoing the rights of Nigerians to decent and affordable housing and his administration’s commitment to this vision, he has left no one in doubt about achieving astounding success in this regard.

    As the FMBN continues to implement its transformative agenda and strengthen its capacity to provide affordable housing to Nigerians, its suite of unique housing products will play a pivotal role in driving progress towards the realization of the country’s housing aspirations. By offering innovative solutions that address the evolving needs of the housing market, the FMBN is poised to become a catalyst for positive change and a beacon of hope for aspiring homeowners nationwide.

  • Firm, agency partner to deepen affordable housing

    Nigeria Mortgage Refinance Company Plc (NMRC) and a German agency, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have signed an agreement to deepen affordable housing.

    The deal was signed on the sidelines of the just-concluded 13th International Housing Show in Abuja.

    NMRC Managing Director Kehinde Ogundimu noted that the  collaboration would be focused on  access finance  housing.

    GIZ’s Cluster Coordinator for Sustainable economic Development, Hans Ludwig Bruns noted that GIZ and NMRC would leverage their synergies for the benefit  in the GIZ-SEDIN focal states: Ogun, Plateau and Niger.

    The collaboration would be done through the World Bank and international cooperation institutions.

    The engagement also falls under the primary mandate of the NMRC to address the challenges in financial innovations required to develop affordable housing from a private sector perspective by acting as a conduit between the capital markets and housing markets.

    Meanwhile, Chief Executive Officer, West African Ceramics Limited (WACL), Mr Bhaskar Rao, has said developing the rural areas will resolve the housing, insecurity and unemployment crisis in the country.

    He made this known during the Nigeria Housing Awards at the 13th Abuja International Housing Show, where he was recognised for his company’s initiatives in promoting affordable housing through the use of local building materials.

    According to him, leaving the rural areas underdeveloped will continue to encourage migration, which will put pressure on urban centres.

    “If the rural areas are left undeveloped, it will have consequential impact on managing the cities because there would be continuous influx and migration of people from rural areas to the cities which would become overbearing on the existing infrastructures, resulting in pollution, unemployment, and insecurity,” he said.

    Rao, however, acknowledged that the government alone could not solve the housing and unemployment problems of the country and called for the enabling environment that would promote entrepreneurship and encourage the Small and Medium Scale Enterprises (SMEs) to thrive.

    According to a statement by WACL, the award was in recognition of his leadership in the tile manufacturing, contribution to housing and support for affordable housing.

    Nigerian Institute of Building President Mr Kenneth Nduka, who presented the award, praised Rao. He said: ‘’I have  interacted with him and the company he manages which have earned our endorsement.’’

  • Fed Govt blames insufficient fund for affordable housing

    MINISTER of State for Power Works and Housing, Hassan Zarma, has restated  Federal Government’s commitment  to address housing deficits in the country.

    He spoke this at the inauguration of three blocks of 12 units of two-bedroom flats in Abuja.

    The Minister attributed insufficient fund as being grossly responsible for the government’s inability to single-handedly provide affordable housing.

    The property was built by the ministry’s Staff Multi-Purpose Cooperative Society (SMCS), where 12 members of the group benefited from the project.

    Zarma, who applauded the group’s commitment to addressing welfare of its members, described the gesture as an indication of true representation of the peoples’ interest.

    “While the government is concerned about providing shelter for the teaming population, the gross insufficient funds due to dwindling revenue, pose a form of serious challenge to the government to single-handedly provide houses for all Nigerians,” he said.

    He, however, stressed that the problem was not peculiar to the country,  hence the need for Public Private Partnerships to address it.

    Chairman of the co-operative group, Ejiofor Frank, said the project was built on 2,400 metre square of land and cost about N86.5 million.

    He described the project as second of its kind with plans to build similar houses in other parts of the territory.

    Frank appealed to the government for more land allocation and provision of access road to the estate.

    A beneficiary, Mrs. Abimbola Taiwo, on behalf of others beneficiaries, applauded the ministry, especially the co-operative group, for sincerity of purpose in delivering the project.

    She urged other members to remain committed to the scheme in order to become house owners

  • Setting the stage for affordable housing in Africa

    The opportunity for African countries to support the growth and development of affordable housing is immense. This and other issues will take the centre stage at the 34th African Union for Housing Finance (AUHF) conference and Annual General Meeting, which hold in Abidjan, Cote D’Ivoire, this month, MUYIWA LUCAS reports.

    When eggheads in the African housing and finance sector converge on Abidjan, Cote D’Ivoire, between  October 23 and 25, the focus will be on primarily providing solutions to the housing challenge confronting the continent.

    This is because providing affordable housing opportunities for Africa’s rapidly urbanising population is a major policy driver for African governments. It also provides opportunities for both local and international investors and developers. This is hinged on the recent estimates by the World Bank, which suggested that more than one billion people will live in African cities by 2040- a figure which more than doubles the current urban population on the continent.

    According to experts, Africa’s cities’ capacity to respond to this challenge and to turn the demand for affordable housing into an opportunity for stimulating local economic growth and development, is critically dependent on an efficient flow of finance.

    The conference, with the theme: “Building Africa’s Housing Financing Chain,” will provide stakeholders with an opportunity to examine the housing needs in the region, including addressing the challenges and opportunities in Africa’s housing finance chain.

    It will also explore key links in the housing financing chain: the finance instruments that support each link in the housing delivery chain, and the funding instruments that make these possible.

     

    Mortgage lending

     

    Stakeholders are convinced that as the conference holds in a leading regional economy like Cote D’Ivoire, which is also the hub for West Africa Monetary Union (UEMOA), one of its focal points will be building UEMOA’s housing finance sector. Considering that mortgage lending is a key issue, Director General of the UEMOA mortgage refinance institution, the Caisse Regionale de Refinnacement Hypothécaire de l’UEMOA, Christian Agossa, will deliver a keynote address on this key area.

    According to Agossa, mortgage lending products need to be well-targeted to the demand side; however, adjustments to product design, including mechanisms to underwrite informal incomes, savings-linked and micro-mortgage products, and pension-backed lending will expand the potential market for mortgage lending dramatically in affordable housing.

    “The affordable housing challenge promises to be a significant driver of economic activity,” the executive director for the Centre for Affordable Housing Finance’s (CAHF), Kecia Rust, said.

     

    Economic opportunity

     

    Yearly, CAHF analyses the most affordable homes, which are being built on the continent. In Nigeria, it is reported that Millard Fuller has developed a starter house for a cost of $7,500.  According to the body, if this was available for purchase with a mortgage across the continent, the potential effective demand would translate into about 52 million houses.  This activity, it further said, could generate $400 billion in economic activity and provide more than 1.3 million jobs in the construction sector alone.

    Based on this, the CAHF maintained that investors are clearly interested in the continent. It further noted that although such gesture is still relatively small in relation to the potential opportunity, investment in residential real estate and affordable housing in particular, is growing.

    “Development finance institutions, as well as international and local investors all working towards maximising the impact investment potential that the numbers suggest.  The 34th Annual AUHF conference will give them a platform for the growing number of affordable housing stakeholders to accelerate their conversation,” CAHF said.

     

    Policy drivers

     

    Rust argued that African governments have a critical role to play in land assembly and the awarding of development rights that support affordability. Infrastructure investment, he further said, must accommodate the expected densities and should ultimately be funded over a longer time frame than the housing itself. Besides, he noted that the capacity of developers to deliver truly affordable housing at scale is an issue that will require policy support and private sector construction financing.

    “And then there is the question of end user financing, the cost of capital, and the trust lenders have in the underlying security. These are all policy and regulatory issues on which the government will need to focus – beyond simply visioning a magic number,” he admonished.

    Indeed, the interest of policy makers to ensure that housing needs of the continent are surpassed needs to be sustained. It is encouraging to know that policy makers as well as several other stakeholders are responding with supportive rhetoric and explicit programmes. For instance, President Kenyatta’s commitment to see the construction of half a million affordable homes in Kenya is one example. Similarly, governments in Nigeria, Uganda, Côte d’Ivoire, Rwanda, South Africa, and others have all expressed a commitment to affordable housing in the past years.

     

    Top thought leaders

     

    Financial Sector Development Department Director, African Development Bank, Mr. Stefan Nallemtaby, is already upbeat about the conference. “We will have a robust discussion on the affordable housing value chain and Abidjan, as one of Africa’s high growth economies is the perfect host city for this conference and AGM,” he noted.

    His assumption may not be faulted given that more than 200 delegates and stakeholders are expected at the summit in October. Some of the confirmed regional speakers include: Mr Christian Agossa, Directeur Général at Caisse Régionale de Refinancement Hypothécaire de l’UEMOA, the Chief Executive of the Federal Mortgage Bank of Nigeria, Ahmed Musa Dangiwa; acting Chief Executive Officer of the Nigerian Mortgage Refinancing Company, Kehinde Ogundimu, among others.

    The summit is a strategic platform for the continent’s affordable housing financing thought leaders to build a more robust housing finance value chain.

  • TUC urges Fed Govt on affordable housing for workers

    The President of the Trade Union Congress of Nigeria (TUC), Comrade Bobboi Kaigama, has berated the Federal Government for not taking workers’ income into consideration in the housing projects being implemented across the nation.

    Kaigama said previous efforts to build houses for workers had remained white elephant projects because they did not plan for the workers by knowing their salary strengths.

    He said: “When you are building houses and you do not know your offtakers’ status, your effort will be in vain. What we have currently is a case of building for the upper class.”

    He spoke in Abuja at a stakeholders’ forum to announce a partnership between workers of the Voice of Nigeria (VON) and Value Chain Consults.

    The partnership is for Value Chain Consults to construct houses for VON workers.

    Kaigama said the project would cover two states in each geopolitical zone, with special ones in Abuja and Lagos in the first phase. He noted that the project which had the backing of President Muhammadu Buhari was an important incentive to make workers more productive, prevent corruption, as well as check insecurity.

    He praised Value Chain Consults for carrying out detailed housing affordability survey for the civil servants, which would eliminate the problem of unoccupied houses due to the inability of workers to pay, and also commended them for taking the pain to pre-qualify the workers before embarking on the construction of the houses.

    Kaigama wondered why international banks gave loans at single digit, while Nigerian banks charged as high as 25 percent interest from loans.

    VON Director General (DG)  Osita Okechukwu assured the workers that the project would be carefully executed for their benefit and that 20 hectares had been allocated at Lugbe for the first phase.

    “I want to assure you that when the planning stage is completed within the next two weeks, we will commence construction of the houses and Mr. President will commission them,” he said.

    He said VON staff would be accommodated the arrangement, starting with staff residing in Abuja.

     

  • We’ll make affordable housing available to Ondo residents, says Akeredolu

    Ondo State Governor Oluwarotimi Akeredolu (SAN) has said his administration will make housing affordable to the residents.

    The governor said the decision arose from his electioneering promise to make living more comfortable for the people through functional education, food for the teeming population through agribusiness and decent accommodation through affordable housing, among others.

    Akeredolu spoke yesterday at the ground-breaking ceremony of the Sunprime Estate at Abo Asakin community, opposite Akure Airport Junction, Oba-Ile, Akure.

    The governor noted that the project, like many others waiting for inauguration, was the end-product of painstaking planning and the investment-friendly plans his administration had put in place.

    Quoting the World Bank report that Nigeria was having an estimated deficit of 18 million housing units on an average family size of six persons, Akeredolu pledged that his administration would pursue its housing programmes to a logical conclusion.

    He said: “Not less than 108 million Nigerians are homeless or not properly sheltered. This, by extension, means that about 60 per cent of our more than 180 million population is literally without accommodation.

    “The implications of this are unplanned environment, littered dump sites, epidemics, uncompleted buildings, sub-standard buildings, unplanned towns and cities along with crimes, to mention just a few.”

    Akeredolu pledged that his administration would address the housing challenges through institutionalised structures, mortgage financing and private sector funding.

    He said: “With an ever-growing population of over three million people per annum, comprising largely of youths, the housing need is no doubt on the rise, hence the need to put on our thinking caps to surmount the challenge.

    “Though the challenges have been enormous, our government has not been folding its arms helplessly to tackle this social menace. Shelter is very central to human existence, hence it is our administration’s commitment to do everything humanly practicable to continue to intervene in this critical sector.

    “In Ondo State, we have adopted creative ways to tackle the housing deficits in view of the ever-increasing needs vis-à-vis the decreasing public funds to finance them, hence our decision to employ the time-tested option of Public Private Partnership (PPP).”

    The Managing Director of Premium and Nelson Limited, Mr. Raph Alabi, a partner in the project, said the major aim of the Sunprime Estate was to meet the housing needs of the current and future generations.

    According to him, Sunprime Estate is a proposed residential and commercial estate of 881 plots out of which 755 are for residential purpose.

    Alabi said: “The proposed layout plan gives necessary specifications of how the estate should be developed, including the infrastructural facilities to create an environment with a degree of economy, beauty and convenience.”

  • Family Homes Fund to spend N1tr on affordable housing

    •Targets 1.5m new jobs

    The Family Homes Fund (FHF), created by the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority (NSIA), has voted N1 trillion for affordable housing for Nigerians by 2023.

    The scheme also targets 1.5 million new jobs to boost families’ well-being. It will be the largest affordable housing-focused fund in Sub-Sahara Africa, according to report from the fund managers.

    The scheme will be leveraging its capital to facilitate access to affordable housing for millions of Nigerians on low-to-medium income levels.

    The fund, according to the promoters, came as a results of effort of Ministries, Departments and Agencies of Government as well as the private sector determined efforts is expected to bridge the huge housing deficits in the country.

    The fund is expected to help the Federal and state governments provide the over 17 million new homes needed by the country over the next 15 years.

    Through strategic partnerships with various players in the sector and some of the world’s main Development Finance Institutions it has an ambitious commitment to facilitate the building of 500,000 new homes by 2023.

    According to the scheme promoters, the fund places priority on how it can take advantage of the opportunity a large- scale house building programme offers to create jobs for the people with low income, to bring about sustainability, improved quality of life, security and hope for beneficiary families.

    “With a projected cumulative spend of up to N1 trillion by 2023 into various inputs into the house building process including doors, windows, tiles, roofing materials, blocks, paving stones, paint among others there is opportunity to incubate large numbers of SME small scale industries creating significant employment,” it said.

    “The Family Homes Fund aims to catalyse the creation of new jobs through the investments we make. Alongside investment by other players in the housing sector, we have a real opportunity to achieve impact. Real positive impact on families, women who often carry the biggest burden in poor households and young people. At a national level, this potential effectively harnessed could generate up to 1.5 per cent increase to the Gross Domestic Product (GDP) by 2023,” it said.

    Besides, the Fund aims to support ongoing dialogue around development of a local contents framework for inputs into the housebuilding process. A long-term objective is to ensure that up to 80 per cent of manufactured inputs are locally produced.

    On partnerships, the scheme aims to build strong partnerships with a broad institutions and agencies to maximise this opportunity.The fund will equip a new generation of young Nigerians with high-level skills in modern methods of construction and technologies.

    “Through a combination of these activities, the Family Homes Fund aims to create or support up to 1.5million jobs by 2023 making a real difference to the quality of life of their families and the economy,” it added.

  • ‘Punitive land cost impediment to affordable housing’

    ‘Punitive land cost impediment to affordable housing’

    Affordable housing has remained an illusion in the country. Managing Director, Wiser Estate, a private developer in Abuja, Mr. Nasir Suleiman, blames it on several factors, including the expensive process of acquiring land for real estate schemes. Suleiman, in this interview with OLUGBENGA ADANIKIN, faults inconsistent government policies for the gap in the housing sector.

    Can there be affordable housing in Nigeria?

    I will borrow the words of the Minister of Power, Works and Housing, Mr. Babatunde Fashola: ‘A housing estate must be acceptable first and affordable because people must like it first and they must be able to afford it.’

    Since then, I have taken that as a principle that developers must ensure they build in accordance with what people want and within their financial ability.  For instance, most of our houses are in city centres where you expect that even the middle income earners cannot get a house, but the low and the middle income earners buy houses from us.

    If you are familiar with some of our houses behind the Ministry of Power, Works and Housing; it is just the Mabushi Expressway that separates it from Wuse 2. Imagine houses that are sold there for just N25 million for instance, a three-bedroom and two-bedroom flat that is being sold for N15 million. Within the cost of construction and even before we finished, the value of such houses have risen to N25 to N30 million for two-bedroom and N40 million for three-bedroom. This shows that affordable housing is possible and we are actually interested in doing that.

    The new one we are about to unveil at the Centenary Ville, we have gone so deep to ensure that no matter how lowly placed a person is, if you visit the place, you will have a home. For instance, we are looking at getting a one-bedroom there at N5 million and two-bedroom for less than N10 million while three-bedroom could go for less than N15 million. I think that, considering the location and proximity to the city centre, is a good deal for any low income earner.

    The Federal Government plans to build one million housing units annually in order to bridge the housing deficit. How well do you think this can be achieved?

    From all indications, government policy on housing is unstable. We have been hearing all these for long. If you go round, you will see a lot of abandoned houses everywhere. In fact, there are a lot of issues. I cannot really speak for government, but I can only give my suggestion to government. For instance, the Abuja housing sector is left for the real estate developers, but the reason we cannot get affordable houses up till now bothers on the burden of land acquisition system, which is a big problem in Nigeria. If you go round, you will realise that there are vast lands even in the heart of the city, you will see lots of undeveloped land, and nobody is asking questions.

    These lands are empty because they are given to people, who are not estate developers. They are given to either political allies or friends, families, who do not have business with real estates. So, what we can do to solve the problem is for government to set up database for genuine estate developers. It is simple. You don’t need to send top officials to come up with a list because it will still end up the same way because they will bring the same set of people, who had been given these lands.

    Furthermore, is the problem of infrastructure. Virtually everywhere I construct my estate, I will be the one to create road, pay compensation to locals, construct the road and sometimes up to asphalt level, sometime water, power among others. These are just some of the reasons for the high cost of properties; we can go on and on.

    So, how do you think land allocation should be handled?

    Simple. Officials should go to real estate sites and find out the companies constructing these house, get their names and form a database and ensure mass housing lands are given to this category of people directly. In fact, if the government does this, it can decide to dictate the prices of houses.

    For instance, we were forced to partner those people the Federal Government allocated the land to such as politicians and businessmen. A land that government will give almost at no cost and these people will come to us as developers, partner us at the current open market rate. I will give you an example, maybe a 10-hectare land was allocated to a businessman, probably he had to collect form and pay N250,000 fee, and pays less than N10 million or thereabout for the land. By the time he gets the allocation, he comes to developers, examine how much the land sells in the open market and then begins to value it at N2 billion. So, what you have to do is, if you must build on his land, have to consider that N2 billion as his equity. So, whatever house you are building, you must ensure that by the time you complete and sell the house, you can recover the N2 billion, make his profit, before you can get your own profit. So, how much will you sell such a house?

    What is the Real Estate Developers Association of Nigeria doing to protect the interest of developers?

    The Real Estate Developers Association of Nigeria (REDAN) has really tried to ensure that quacks don’t just venture into the business and mess-up everything. If not for REDAN’s regulations, the issue of building collapse in the country would have been really worse than it is now. The Association has also helped to prevent individuals from just grouping themselves and secure loans in the name of real estate developers. If you check both government and bank criteria for giving housing loans, you find out that there must be screening from REDAN, which also helped in protecting people’s money and others.

    What does it take to be a developer?

    To be a professional developer is not rocket science. You don’t have to be a professional in the construction industry to be a developer. A developer is like an entrepreneur, anybody can be. For instance, the chairman of urban center is an economist. The chairman of Brains and Hammers is a public administrator. The Managing Director of Brains and Hammers is a graduate of microbiology, but he has successfully taken Brains and Hammers to where they are. So, what it takes is just commitment, getting the right people and ensuring that you are not cutting corners. That is the most important thing. Forget about profit, profit will come.

     

    What informed the establishment of Wiser Estate?

    It is a company conceived in 2012 and began operation as a real estate development company in 2015. We started with a block of six-unit terraces. Gradually, within two and half years, we now have about 500 units of houses at various stages of completion. The journey so far has been really interesting though challenging, which is natural because of the situation in Nigeria, where people expect that you have to be very rich before you can start a business and looking at the background I’m coming from that I had to start from the scratch with no support whatsoever from anyone including the government. But through past experiences, and goodwill from where I previously worked, I was able to put something together. Good enough, with almost zero Kobo, I was able to start a real estate company and by the grace of God, we are where we are.

    Right now we have various housing projects. We have four housing schemes in Kaura district of various types and styles, all completed and being occupied. We also have Wiser Estate Mabushi 1 and 2, behind Federal Ministry of Works and close to regent school. We also have another close to VIO office, comprising 240 units with 80 units in the phase 1 at about 60 per cent completed. We have an ongoing project at Mbora district close to CITEC estate along Airport road in Jabi while the one we are about to unveil for the proper mass housing, consists of one to five-bedroom duplex- that is the Centenary ville close to Centenary City, which the Federal Government was about to construct, though suspended now. We have commenced a project for the Kaduna State government- the Rigasa model market very close to the railway line.

  • Firm restates commitment to affordable housing

    The Managing Director of RevolutionPlus Property Development, Bamidele Onalaja, has restated his firm’s commitment to affordable housing for workers across the country.

    He spoke at the inauguration of the company’s corporate head office in Ikeja, Lagos, at the weekend.

    According to Onalaja, housing deficit dates back to 1957, when the first white paper on housing deficit was released.

    Despite the past administrations’ policies to solve the problem, he explained, the issue has continued to linger, making the deficit to hit 17 million.

    “As Nigeria’s population keeps growing, especially urban settlements, in terms of births and rural to urban migration, the demand for houses keeps growing as well but without a commensurate response from the government at various levels,” Onalaja said.

    He called on the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to champion the reform of the Land Use Act, create an enabling environment for  families to acquire houses by liberalising the processes of obtaining mortgage at government institutions.

    He recalled that between 1985 and 1993, former military president   Ibrahim Babangida initiated the  “Housing for all by 2020 policy,”, which, he claimed, has not yielded results because the houses, where available, are beyond the reach of the people.

    Lagos State Surveyor-General Mr. Olutomi Sangowanwa praised the firm and other private investors in housing for their intervention in the state and country.

    He further said the government alone could not provide housing for all, and that was why the banking sector, too, had keyed into the sector by providing mortgage facilities.