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Tag: housing sector

  • AHCN canvasses options for housing sector

    AHCN canvasses options for housing sector

    As Nigeria marks World Habitat Day 2025, the Association of Housing Corporations of Nigeria (AHCN), led by its President, Eno Obongha, has called on governments to take bold steps toward addressing challenges confronting the housing sector.

    Delivering the State of the Nation’s Housing Address themed “Urban Crisis Response” in Abuja, Obongha described the situation as an unfolding urban emergency that has left millions of citizens struggling with unaffordable rents, the rapid expansion of informal settlements, and deteriorating living conditions in major cities.

    “The global economic crisis, which has culminated in inflation and a high cost of living, has taken a toll on our urban centres, with many city dwellers facing severe financial challenges. The loss of jobs and rising unemployment among the youth have resulted in unstable incomes and the inability to pay rent,” he said.

    Obongha further urged the Federal Government, state governments, and other relevant agencies to take swift, practical action to bridge the country’s housing deficit. He also emphasized the need for proper harmony and synchronization between state governments and the Renewed Hope Housing Agenda to elevate housing delivery nationwide.

    “The Renewed Hope Housing Agenda needs to be properly harmonized and synchronized with state governments, using state housing corporations as agents of delivery to take the agenda to the next level. This will no doubt open up the economy and help drive our recovery by creating employment opportunities for our teeming unemployed youth. Our young people deserve a future free of uncertainty. We envision a new Nigeria where housing becomes the engine of economic growth and that dream is achievable if harmonization is well coordinated and executed.”

    Addressing the recurring issues of building collapse, demolition, and illegal construction, Obongha underscored the importance of enforcing building regulations and securing proper approvals before any construction work begins to prevent disasters.

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    “Most of the buildings that collapsed were constructed without approval. Some had fraudulent approvals, while others were built on flood plains. The Town and Country Planning Law specifies zoning for buildable and non-buildable areas, but many people, out of frustration, ignore these rules and later face demolition or flooding. Regulations must be strictly enforced,” he cautioned.

    The AHCN, however, commended President Bola Ahmed Tinubu and the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, for the ongoing reforms under the Renewed Hope Housing Programme, which has delivered more than 10,000 housing units across 14 states and the FCT in just two years, a milestone the association noted surpasses the previous administration’s eight-year record of 3,500 units.

    Obongha also praised the reforms at the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA), noting that both institutions have expanded single-digit mortgage schemes, attracted over ₦70 billion in private capital, and introduced new initiatives to enhance homeownership among Nigerians.

    Concluding his address, the AHCN President called on the government to support ongoing housing initiatives through the provision of land banks, and to strengthen financial and institutional collaboration between the FMBN and the Family Homes Funds Limited (FHFL) in order to significantly reduce Nigeria’s housing deficit.

  • Increase budgetary allocation to the housing sector

    Increase budgetary allocation to the housing sector

    • By ESV Olude Moshood

    Sir: Housing is key to human existence. It is an essential part of life, with several benefits to individuals, families, and the community in that it provides comfort and healthy living, privacy and security. Housing also enhances social stability and cohesion, education and job opportunities. People with a guaranteed place to live would most likely not engage in violence and crime. That is to say, housing is required to promote both physical and psychological well-being.

    Housing is essential for economic growth, development and prosperity of a country, contributing significantly to economic growth and development, through its impact on major macroeconomic indicators such as: employment, savings, investment and productivity. People with access to secure and decent housing would most probably invest in their communities, thereby creating jobs and stimulating economic activities. Its importance to economic growth and development cannot be overstated.

    The important role of housing is further underscored by its inclusion as one of the indicators of the computation of cost-of-living index. Consequently, the cost-of-living index is a major factor or consideration for prospective domestic and foreign investors in taking decisions. The robust contribution of housing to economic growth and increased social well-being of the people, among other factors compels governments all over the world over, to give ample attention to the lingering problem of housing challenges. That is the right thing to do, in as much as housing is one of the major necessities of life.

    Nigeria has been battling with housing challenges, with housing deficit which is currently estimated at about 28 million units. Though frightening, it presents a significant opportunity for investment and transformative change. It calls for increased funding as housing provision is expensive. The real estate sector has not witnessed too much patronage from the federal government in terms of release of funds.

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    I would suggest that government take a more active part in housing by increasing budgetary allocation to the sector. Housing sector has the potential to create jobs because a large number of youths will get employed if more funds are injected into this sector.  The present administration has taken a commendable step in that direction, from N119 billion for housing in the 2024 fiscal year to N728.94 billion in 2025. Under the renewed hope agenda, N50 billion was also earmarked for construction of 40,000 housing units. This underscores the commitment of the government to addressing the challenges of housing.

    But looking at the critical needs of housing, while also ensuring the maintenance of the structures in place, I would still make a case for increased allocation to the housing sector. Nigeria’s rapidly growing urban population and the expected enormous demand for affordable housing require that more housing units be made available. Government should ensure that enabling environment, via infrastructure development to encourage investors (local and international) to consider the nation’s growing housing sector as an avenue for profitable investment.

    Another pertinent issue towards resolving housing challenge is full restoration of land ownership to the people through the provision of title documents. This would provide an opportunity for the people to raise loans for entrepreneurship purposes. Total reform of the land tenure and titling system in Nigeria is imperative to making them development friendly.

    The federal government should also collaborate with estate surveyors and valuers to enhance growth in the real estate sector of the economy through formulation of policies that would help to develop the real estate sector of the economy.

    •ESV Olude Moshood,

    Lagos

  • Fed Govt injects N150b into housing sector

    Fed Govt injects N150b into housing sector

    The Federal Government has invested N150 billion through the Ministry of Finance Incorporated in the Real Estate Investment Fund.

    This move reinforces the government’s commitment to driving home ownership and economic growth while positioning the private sector at the forefront of execution and management.

    With this significant investment, the foundation has been laid for long-term sustainability under expert private sector stewardship.

    The appointed fund manager, ARM Investment Managers, will channel the funds to facilitate long-term, low-cost mortgage financing while also guaranteeing developers the security they need to deliver quality housing on time.

    This approach is expected to not only boost homeownership but also accelerate economic development through the real estate and construction industries.

    It will be recalled that the Ministry of Finance incorporated Real Estate Investment Fund (MREIF),  launched under the Ministry of Finance Incorporated (MOFi) in September 2024. MREIF aims to provide low-cost mortgage financing options for eligible Nigerians, marking a major milestone in the one million homes presidential initiative.

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     The Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun said it’s positioned to revolutionize housing access by making long-term mortgages more attainable for aspiring homeowners. According to him, the same time, real estate developers will benefit from guaranteed funding, allowing them to scale up affordable housing projects, create jobs, and stimulate broader economic activity.

    He said: “Following the successful full subscription of the N150billion Series 1 issuance, MOFI has announced that Series 2, worth N100billion, will soon be available to private and commercial investors, pending approval from the Securities and Exchange Commission.”

    According to him this initiative presents an exciting opportunity for institutional investors, high-net-worth individuals, and private stakeholders to take part in a transformative project that merges economic impact with financial returns. Investors will not only benefit from attractive profits but will also contribute to Nigeria’s economic growth, housing development, and alignment with the United Nations’ Sustainable Development Goals he added.

  • Increase budgetary allocation to housing sector

    Increase budgetary allocation to housing sector

    Sir: Housing is one of the necessities of life. Housing is required to promote both physical and psychological well-being. The sector plays a very important role in the social and economic development of a country. It contributes significantly to economic growth and development, through its impact on major macroeconomic indicators such as: employment, savings, investment and productivity. The importance of the housing sector in economic growth and development cannot be overstated.

    The important role of housing is further underscored by its inclusion as one of the indicators of the computation of cost-of-living index. Consequently, the cost-of-living index is a major factor or consideration for prospective domestic and foreign investors in taking decisions.

    The robust contribution of housing and various housing programmes to economic growth and increased social well-being of the people has made governments the world over to give ample attention to the lingering problem of housing deficit across both developing and developed countries.

    In view of the housing crisis in the country, with housing deficit currently standing at about 28 million units, increased funding would not only help to reduce the number, but also reduce the level of unemployment in the country.

    The real estate sector has not witnessed sufficient patronage from the federal government in terms of release of funds. Even from the budget, you will know because sometimes they give it two per cent or four per cent.

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    The first thing the government should do is to increase budgetary allocation to the housing sector. This will indicate whether the government wants to take active part in that sector or not. The housing sector has the potential to create jobs because a large number of youths will get employed if more funds are injected into this sector.

    Another pertinent issue towards resolving housing challenge is full restoration of land ownership to the people through the provision of title documents. This would provide an opportunity for the people to raise loans for entrepreneurship purposes. Total reform of the land tenure and titling system in Nigeria has become imperative to making them development friendly.

    The federal government should also collaborate with estate surveyors and valuers to enhance growth in the real estate sector of the economy through formulation of policies that would help to develop the real estate sector of the economy.

    •ESV Opebiyi Beatrice Abosede, Lagos.

  • Housing minister unveils strategy to transform housing sector

    Housing minister unveils strategy to transform housing sector

    The Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has unveiled plans to reform the country’s housing sector.

    In his address during a Ministerial Sectoral briefing held in Abuja, Dangiwa unveiled a series of landmark achievements and initiatives aimed at transforming the sector.

    Key among the achievements highlighted was the commencement of the Renewed Hope Cities and Estates Development Programme, launched earlier in the year by President Bola Ahmed Tinubu.

    Under phase one of this ambitious plan, the ministry aims to deliver a total of 50,000 housing units across Nigeria, with integrated living communities designed to cater to all income brackets.

    According to him: “The Renewed Hope Housing Programme, designed as a catalyst for economic growth, is set to generate over 1,250,000 direct and indirect employment opportunities.

    “Additionally, the Ministry has rolled out initiatives such as the National Slum Upgrade Programme and the creation of a National Social Housing Fund (NSHF) to ensure access to decent and dignified accommodation for all Nigerians.

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    “From the Ministry’s 2024 Approved Budget, we are also rolling out another batch of Renewed Hope Estates comprising 250-housing units each in 6 additional states totalling 1,500 housing units.

    Recently, we launched an Online Housing Portal to ease the process of acquiring homes that we are building under the Renewed Hope Cities and Estates Programme.

    “Under Phase 1 of the Slum Upgrading Programme, the Ministry plans a total of 26 sites nationwide. This includes four (4) sites in each of the six regions of the country totaling twenty-four (24) and two (2) in the FCT. The key services to be provided at the identified sites will include water supply, solar street lights, rehabilitation of access roads, construction of drainages and waste management and sanitation services amongst others.

    “Since the inception of the administration of His Excellency, President Bola Ahmed Tinubu, GCFR, and the Renewed Hope Housing programme, we have taken pragmatic steps to fast track the sale and occupation of the housing units across the country. 

    We advertised Expression of Interest forms with 4 (four) windows of subscription to give room for all income segments of Nigerians as follows: (i) Outright payment (ii) Mortgage (iii) Rent – to – Own (v) Instalmental payment.

    “We received a total of 8,925 Expression of Interest. This comprises 1,294 for Outright Purchase, 2,408 for Mortgage, 2,184 for Rent-To-Own and 3,039 for Instalment payment.”

  • FG, FMBN rolls out strategy to reform housing sector

    FG, FMBN rolls out strategy to reform housing sector

    To revamp Nigeria’s housing sector, the Federal Mortgage Bank of Nigeria (FMBN) met with Ahmed Musa Dangiwa, the Federal Minister of Housing and Urban Development.

    The meeting aimed to accelerate housing delivery goals and strategize on sector-wide reforms.

    During the gathering held at the FMBN headquarters in Abuja, Shehu Osidi, the managing director of FMBN, underscored the pivotal role of housing in economic revitalization, job creation, and overall socio-economic development. 

    Emphasizing a multi-pronged approach, Osidi highlighted plans for public-private partnerships to facilitate widespread housing provision, saying that President Tinubu’s commitment to erecting 1000 houses nationwide, backed by a 100 billion naira guarantee from FMBN, echoed the collaborative effort to tackle housing challenges.

    To ensure affordability, Osidi outlined measures including reduced equity contributions and the introduction of an earn-to-own scheme, aimed at low-income earners. 

    Furthermore, strict control over housing prices was pledged to align with affordability goals.

    He said: “We will provide mortgages to ensure that the housing units are affordable to low income earners. we are fully involved so we will control the prices to which this houses are delivered. 

    “We have already reduced equity contributions from 30% to 10% to enhance affordability. We have also introduced the earn-to-own which does not require any equity contribution.”

    Chairman of the Housing Reform Task Teams, Adedeji Adesemoye, reiterated the presidential mandate to drive comprehensive reforms in the housing sector. 

    Identifying outdated housing laws as a key hurdle, Adesemoye expressed confidence in the team’s ability to enact meaningful change, leveraging collective stakeholder engagement.

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    He said that the reform agenda, spearheaded by the newly inaugurated task teams, encompasses critical areas such as housing institutions, multi-agency project delivery, land reforms, and building materials manufacturing hubs.

    He disclosed that a clear actionable strategy with short, medium, and long-term milestones is set to expedite reforms, with initial results anticipated within three years.

    He expressed confidence that the collaborative efforts between FMBN, government task teams, and stakeholders will enhance a concerted push towards addressing housing challenges and fostering sustainable development in Nigeria’s housing sector.

  • ‘Low income bane of housing sector’

    ‘Low income bane of housing sector’

    The Managing Director/Chief Executive Officer of UPDC Plc Mr Odunayo Ojo has identified low income levels among Nigerians as one of the challenges affecting ownership of homes in the country.

    He said insufficient income propelled by low – paying jobs continues to dog efforts to grow the real estate industry adding that attempts by developers to erect houses for sale will not get the  desired response until income levels spike among prospective owners.

    Speaking in an interview, while unveiling an iconic piece of real estate, known as The Hampshire, Ojo said : ” One of the greatest problems for the housing challenge is that the income level is low. A lot of people do not have enough income to be able to afford homes, so when we create jobs, when we create well-paying jobs on our projects, we increase people’s ability to demand homes and when there is effective demand, the supply will come and that is the way the market works.

    “If you go and build a lot of houses today and there is nobody to buy them, you lose money. So, the creation of jobs is one of our strategies for solving the housing problem.”

    Speaking on Nigeria’s housing need,   the Managing Director/Chief Executive Officer of UPDC Plc., Odunayo Ojo, said: “We have a high deficit of housing in Nigeria and UPDC is contributing its own quota, one project at a time and that’s why we are launching a project like The Hampshire today to contribute our own quota to reducing the housing deficit in the country.

      He said the estate is a 5 hectare Site and Services development, designed as a gated all-inclusive community with infrastructure that will ensure a low carbon footprint.

        “Within The Hampshire, you are going to have hundreds and hundreds of households owning their homes. We are going to have, not just shelter, we are talking about homes where people can have fulfillment. In addition to that, we are also creating jobs.”

        The  estate named Hampshire is located along Monastery Road, Sangotedo, Lekki, Lagos, about a minute’s drive from the famous Novare Mall, and about 10 minutes’ drive from Lagos Business School ,  close to the proposed 4th Mainland Bridge, along the Lekki-Epe Expressway.

        Odunayo Ojo, stated that The Hampshire is the latest of their projects. “It’s a five hectare project in the area of Lekki, Lagos. The Hampshire comprises a mixed use development that has such plots as residential, so we have low density residential plots, medium density residential plots and high density residential plots.

        “There are sites from 300m² and you can build single family dwelling houses on them for the medium density plots they are sized from 553m², and you can build semi-detached houses on them and for high density plots, there are sites from 900m² and people can build blocks of apartments on them.

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        “We also have two commercial plots sized at about 2435 plot square meters, where people can build different complementary commercial uses like schools, like like cafes, like gyms, you know, like lounges and everything that people need in this neighbourhood can be on commercial plots and then we have a 3000 square meter communal green area, which is really going to be the focal point of the development where, you know, children can come and play, people can have their recreation”.

         We are going to have places where you can do the exercise or just go in the evening and read a book, so it’s a very lifestyle led project, and we hope that our customers are going to have a lot of fulfillment, keying into it as either an investment or as a place to live.”

        The Hampshire, he said, is a huge project, and that the cost of infrastructure runs into billions of Naira. “As you can imagine, five hectares with several kilometers of roads and with water treatment plants, with sewage treatment plants, with state of the art infrastructure, such as solar powered street lights, energy efficient installations on the ground water systems, overhead water systems, all those things do cost money. What we have done is to ensure that the project is developed in an efficient way, to make sure that our customers can still afford them, and we are giving people value for money. So, affordability is a key issue given the economic challenges we’ve faced.

        “We make sure that our developments are efficient, we’ve looked at our designs to streamline some of the areas of waste, so in the past, people were building very, very large spaces that amount to a higher cost but very little use, so we are making our development more compact by making them more efficient and that also brings down the cost, in addition to that we are making sure that it’s not just the cost of buying the units that we are focused on, given the cost of living in those units. So, for instance, a lot of our systems are solar powered. In the future you won’t have to worry about things like diesel costs and electricity costs.

        The construction of The Hampshire’s infrastructure will actually begin next week, he said, “Mid November is when we are starting, that’s why we’re having the groundbreaking today and we intend to deliver the total complete project by February of 2025.

        The UPDC boss said: “We are starting with the first phase, which is called the Hampshire, which is the site and service scheme and we are also doing units within the project, which we call the Hampshire Court. We are doing three bedroom apartments, which are going to be well priced for our customers to be able to not just have access to land, but also have access to buildings.”