The Nation Newspaper

Tag: Housing

  •  How to reduce the housing deficit

     How to reduce the housing deficit

    • By Pius Evbuomwam

    Sir: Outside food, housing is the second most essential basic need of man. Housing is critical to the social and economic development of any society. It has a profound impact on the health, welfare and productivity of a man. Housing enhances one’s status. In other words, housing plays a vital role in a person’s standard of living and place in the society. In the most developed economies for instance, housing sector is an important stimulator and driver of economic growth, with multiplier effects on employment, income, access to education and health, among several other socio-economic impacts.

    Because of its importance to the development of the society, to the social, economic and welfare of the people, the developed economies made housing a priority. In Nigeria, reverse is the case; access to affordable housing has largely remained an unfulfilled dream to the vast majority, most especially, the middle and the lower classes of the society. To put it the way it is, housing deficit in Nigeria has grown from bad to worse, and successive governments from the time of Nigeria’s independence 64 years ago have been grappling with this problem, with little and insignificant outcomes. As at today, housing deficit in Nigeria is put at 28 million units, with about N21 trillion required to shore it up.

    Crucial challenges to housing development in Nigeria include non-availability of serviced plots for housing development, challenge of good title that will enhance the marketability of the land after you might have built houses on it, lack of basic infrastructures that will facilitate smooth development or a good title, challenge of finance. Housing is capital intensive and unfortunately, housing sector has been receiving very little in budgetary allocations compared to other sectors. Another challenge is the level of development in our country. We are still glued to the traditional way of mortar and bricks which takes a long time, and which does not take cognisance of the high rate of population and urban growth.

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    In other words, technology and expertise required for construction and development, technology required for mass housing for the teeming population is lacking. We lack the capacity, the technologies and system constructions that can throw up a lot of housing units at a time. To compound the challenge of finance is the absence of efficient mortgage finance system that would have granted easy access to housing. 

    Going forward? ‘Give to Caesar what belong to Caesar.’ Give management of housing sector to housing experts. Estate Surveyors & Valuers are better equipped to manage Nigeria’s housing.

    Most of those who have administered housing knew little or nothing about housing. It is not surprising therefore that housing sector and housing delivery lacks proper planning. Housing sector has suffered a great deal due to lack of proper planning and this constitutes a very big impediment to housing delivery. Allow the Estate Surveyors and Valuers to take charge and commence from the point of proper diagnosis of the problem, re-enact the land and housing policies that will guaranty access to housing on a continuous basis in Nigeria.

    •Pius Evbuomwam,

     Benin.

  • Making the housing sector a priority

    Making the housing sector a priority

    • By Mariet Avuedaoya Igiekhume

    Sir: Though not always recognized, the housing sector plays a very key role in a country’s welfare. You would agree with me that housing affects directly the performance of other sectors of the economy, and the well-being of the citizenry, for which reason adequate housing provision has since the early 1970s engaged the attention of most countries, especially the developing ones.

    One of the basic needs of man, housing impacts positively on productivity. Workers’ health, well-being, and growth are tied to decent housing. Not only that, housing is one of the indices for measuring the standard of living of people across societies. That is why governments of the developed nations in particular, have designed programmes of assistance to enhance adequate delivery of housing. Prominent in the list of the programmes are the ones around provision of infrastructure and finance, with more emphasis on finance, because housing provision requires huge capital outlay, which is often beyond the capacity of the medium income/low-income groups.

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    Mortgage financing is a major area of concern and one of the most formidable constraints in the housing sector. Governments of the countries of Europe and America have since addressed this issue, and have put in place structures which ensures efficient and sustainable credit delivery to the housing sector.

    One of the major challenges to housing provision in Nigeria is the absence of well-established and effective mortgage administration, and until this challenge is effectively resolved, the question of housing would remain begging for answer. I am of the opinion that government and the private sector should jointly drive the mortgage system. 

    There is the overall need to maintain the macro-economic variables via disciplined fiscal and monetary policies for stable growth and low inflation to support low interest rates.  Direct interventionist policy, to promote liquidity of the mortgage industry at single digit interest rates via the Nigeria Mortgage Refinance Corporation (NMRC) and Family Home Fund (FHF) is the way to go.   Key is that the private sector via mortgage banks retain the role of underwriting mortgages directly and will boost effective demand for homes, which I think is far lower than the often-touted 21 million housing shortfalls. 

    It is important to state again that the core focus of government should be on how to control inflation in the long run, to allow for single digit interest rates, rather than just intervention policies.

    •ESV Mariet Avuedaoya Igiekhume,

    Benin. 

  • Way out of housing sector challenges

    Way out of housing sector challenges

    • By Chime Adesanya

    Sir: Housing challenge in Nigeria has been endemic. Talk of unavailability of serviced plots or plots of land that are not ready for housing development, lack of necessary basic infrastructures that will facilitate smooth development, or a good title that will enhance the marketability of the land, especially after one might have develop or build houses on it; yet, the challenges are not difficult to resolve.

    Finance is the major impediment to housing provision and delivery. Housing development is capital intensive, no matter the standard and scope of work you want to do; you need quite a lot of money to accomplish it.

    To compound the challenge of finance is the absence of efficient, comprehensive and organised mortgage finance system that would have granted easy access to housing. Central Bank of Nigeria initiative in collaboration with the World Bank in setting up the Nigeria Mortgage Refinance Company Plc (NRMC) is expected to boost mortgage financing and home ownership schemes in the country, but it is yet to yield appreciable outcomes. Someday, I hope that the generality of our people would be able to access mortgage facilities.

    Going forward, housing sector must be properly regulated and its activities coordinated to address low quality of housing development and absence of mass and affordable housing. There should be regulations. We must checkmate infiltration of the sector by land speculators and non-professionals. There is need to identify professional real estate developers just as it is being done in other climes such as United Arab Emirates, America and United Kingdom. Failure to do these is dangerous to the sector and might even put the practitioners in confusion.

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    Another hindrance to housing development which we all know is the Land Use Act. That is why the Nigerian Institution of Estate Surveyors and Valuers have been calling for a review of the Act, and this cannot easily be done until it is removed from the constitution. In the interest of Nigeria and Nigerians, we need to review the Land Use Act.

    The challenge of ineffective housing finance must be sorted out in as much as it would be impossible to segregate finance from housing. We must address the fundamentals of poor economy.

    Government needs to strengthen its legal and regulatory framework for mortgages, including property rights, land registration, and foreclosure procedures to enable a virile and robust mortgage system. Clear and unambiguous property rights, fast land registration processes, and well-defined foreclosure procedures can give lenders and borrowers better security, perhaps leading to additional mortgage lending.

    •Chime Adesanya,

    Lagos.

  • The dawn of a new housing era

    The dawn of a new housing era

    For years, Nigeria’s housing sector faced persistent challenges and resisted past efforts for reform. However, President Bola Ahmed Tinubu’s recent blueprint aims to address the country’s substantial housing deficit with innovative strategies. As the Minister of Housing and Urban Development, Arc Ahmed Dangiwa is charged with implementing the Renewed Hope Agenda’s mass housing plan and turning this vision into reality. In this report, BOLAJI OGUNDELE writes on the progress made during in the last one year

    Nigeria’s housing sector has made impressive strides this past year, achieving progress typically seen over a decade. Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, is at the forefront of this shift, focusing on innovation and inclusivity to broaden homeownership beyond the affluent. With a strategic vision and collaborative efforts, Dangiwa is tackling Nigeria’s housing challenges, including a significant deficit in affordable homes and poor living conditions. Supported by Minister of State Abdullahi Tijjani Gwarzo, Dangiwa draws on his 30 years of architectural expertise to drive comprehensive and sustainable change, addressing immediate needs while laying the groundwork for future development.

    Housing is a fundamental human right and crucial for a nation’s well-being, providing not only shelter but also health, security, and economic opportunity. Nigeria, however, faces a severe housing deficit exceeding 20 million units, worsened by rapid urbanization and a growing population. As cities struggle to keep pace with new residents, challenges such as inflation, high living costs, low incomes, and insufficient supportive policies further obstruct homeownership.

    The result is a proliferation of informal settlements and slums with poor living conditions. A recent PwC survey found that 75% of Nigeria’s 42 million housing units are substandard, underscoring the severity of the crisis. Systemic issues, including high construction costs, restrictive land acquisition processes, and limited affordable financing options, pose significant barriers to homeownership.

    Inefficiencies in public housing agencies, outdated policies, and the absence of a unified national strategy exacerbate the problem. Against this backdrop, Arc. Dangiwa has assumed office with a commitment to tackling these challenges and driving meaningful, sustainable change. His leadership is pivotal in addressing the housing crisis and working toward safe, affordable, and decent housing for all Nigerians.

    Roadmap for transforming Nigeria’s housing sector

    Upon taking office in August 2023, Dangiwa introduced a comprehensive strategic action plan aimed at addressing Nigeria’s deep-seated housing challenges. This plan is not just a set of policy proposals but a detailed roadmap designed to guide the Ministry and improve access to affordable, decent housing for all Nigerians. The plan includes several critical components, each essential for transforming Nigeria’s housing sector. By tackling the fundamental issues impeding progress, Dangiwa aims to revolutionise housing development and delivery in the country.

    This initiative underscores Dangiwa’s commitment to creating an inclusive, sustainable housing sector. As the plan unfolds, Nigerians can anticipate significant improvements in housing affordability, accessibility, and quality, marking a hopeful shift towards better living conditions for everyone. One of Arc. Dangiwa’s initial actions was to reform key federal housing institutions, such as the Federal Housing Authority (FHA) and the Federal Mortgage Bank of Nigeria (FMBN). These reforms are designed to boost the efficiency of these bodies, enhance service delivery, and align their operations with the goal of providing affordable, decent housing for all Nigerians. By streamlining these institutions, Dangiwa is setting the stage for a more responsive and effective housing sector.

    On February 15, 2024, President Bola Ahmed Tinubu approved a leadership change at the FHA and FMBN. Oyetunde Ojo was appointed to head the FHA, and Shehu Usman Osidi became the Managing Director of FMBN. During an inaugural meeting, Dangiwa urged the new leaders to transform these agencies to fulfill their mandates and align with the Renewed Hope Agenda for housing, as highlighted in his “Fail to Perform and Leave” speech. The Minister has also implemented mechanisms to guide and oversee these agencies to ensure they meet their objectives.

    Recognising the urgent need to tackle the housing deficit, the Minister has set an ambitious goal of constructing at least 20,000 housing units each year. This target is specifically aimed at providing affordable housing options for low and middle-income earners who struggle to find housing within their budget. A key part of this initiative is the creation of the National Social Housing Fund, which offers financing alternatives for those who cannot access traditional mortgage facilities. By boosting the supply of affordable housing, the Ministry aims to make homeownership achievable for millions of Nigerians.

    The Renewed Hope Cities and Estates Programme has emerged as a flagship initiative of the Ministry and is among President Tinubu’s Top 10 projects for 2024. The first phase aims to deliver 50,000 housing units across seven cities, including the FCT, Lagos, Port Harcourt, Kano, and Enugu, with at least 1,000 units per city. In the remaining 30 states, estates will feature 250 units each. During recent ground-breaking ceremonies in 12 states, the Minister highlighted that this phase will create 1,250,000 jobs, potentially lift 100 million Nigerians out of poverty, and contribute to the President’s goal of establishing a $1 trillion economy.

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    Dangiwa has also demonstrated a strong commitment to ensuring value for money in his approach. He has pledged to complete and allocate homes from previous administrations to deserving citizens, reflecting a zero-tolerance stance on unfinished projects. This initiative aims to ensure that public resources are used efficiently and that Nigerians benefit from the housing projects that have already been started.

    His approach to urban development is quite comprehensive. By emphasising both urban renewal and slum upgrading, he’s addressing the critical issues of inadequate housing and poor living conditions in a holistic manner. This dual focus not only helps to increase the overall housing supply but also directly improves the quality of life for residents in existing urban areas. Urban renewal typically involves revitalising deteriorating areas by improving infrastructure, public spaces, and services, which can stimulate economic activity and create a more appealing environment. Slum upgrading, on the other hand, is focused on improving the conditions of informal settlements, often through better housing, access to clean water, sanitation, and essential services.

    Together, these initiatives aim to create a more balanced and equitable urban environment. By tackling both new development and the enhancement of existing areas, Dangiwa’s strategies seek to provide dignified living conditions for all Nigerians and to ensure that urban growth is both sustainable and inclusive.

    A major focus of the Minister is land acquisition, a significant hurdle in housing development due to procedural bureaucracies and high costs. Under Dangiwa’s leadership, the Housing Ministry is streamlining land administration processes to make land acquisition more efficient and affordable for both developers and individuals. This includes the proposed establishment of a National Land Commission to implement the Land Use Act and review outdated sections. These reforms are essential for reducing housing costs and improving land accessibility.

    Building materials manufacturing clusters/skills acquisition programme

    To further reduce construction costs and boost local industry, the Ministry is setting up building materials manufacturing hubs across Nigeria’s six geopolitical zones. This initiative aims to support the housing sector while also stimulating economic growth and job creation. By promoting local production of building materials, the Ministry seeks to decrease reliance on costly imported materials, which are often subject to global market fluctuations. This approach is expected to lower construction expenses and make housing more affordable, particularly for Nigeria’s low and middle-income populations.

    One of the four Reform Task Teams inaugurated by the Minister, the Building Materials Manufacturing Hubs Task Team, was tasked with developing plans for establishing the hubs. This includes recommending ownership and funding structures, identifying locations, and addressing operational technicalities.

    The National Artisan Skill Acquisition Programme (NASAP) is a vital part of the Ministry’s action plan. According to a 2015 OECD report, enhancing skills is crucial for inclusive and sustainable development, as it enables a broader segment of society to contribute to the economy, boosting productivity and minimising the need for redistribution. Enhanced skills drive sustainable economic growth by fostering innovative capacity that advances the economy while preserving environmental resources. By equipping Nigerians with essential skills for the housing sector, the Minister aims to tackle both unemployment and the shortage of skilled labour in construction. The programme is designed to build a skilled workforce that supports ongoing housing projects and promotes sector growth.

    Furthermore, the recent increase in building collapses in Nigeria underscores the need for such a programme. The lack of adequate skills required for constructing durable structures may be contributing to these failures. NASAP represents Dangiwa’s response to this national concern, aiming to enhance skill levels and ensure the construction of safer, more resilient buildings.

    Dangiwa’s inaugural year as Minister of Housing and Urban Development has been marked by a series of ground-breaking achievements, each contributing to the transformation of Nigeria’s housing sector. These milestones highlight the Minister’s strategic vision, commitment to effective implementation, and dedication to enhancing the lives of Nigerians.

    The creation of four Reform Task Teams in January 2024 was a significant move towards tackling the sector’s challenges. Comprising industry experts and key stakeholders, these teams are crafting detailed plans to unlock the sector’s potential. Their work has already identified critical bottlenecks and proposed necessary amendments to existing laws and policies.

    Launched in February 2024, the Renewed Hope Cities and Estates Programme aims to deliver 50,000 housing units nationwide, providing affordable options for all income levels and promoting social integration and economic growth. The initiative is set to create over 1.25 million jobs, boosting local economies and fostering business opportunities. The Ministry’s commitment to decentralizing housing development is evident from the ground-breaking ceremonies in 13 states, totalling 6,612 units. Additionally, the new Online Housing Portal enhances transparency and accessibility, streamlining the process for Nigerians to apply for housing and making homeownership more achievable.

    Furthermore, the expanded Urban Renewal and Slum Upgrading Programme, with projects active at 26 sites nationwide, is dedicated to delivering essential services to vulnerable communities and ensuring dignified living conditions for all Nigerians. By addressing urban renewal and slum upgrading, the Ministry is tackling the root causes of urban poverty and inequality, advancing social equity. These achievements underscore Dangiwa’s steadfast commitment to transforming Nigeria’s housing sector and making significant strides toward providing affordable, decent housing for every Nigerian.

    The enthusiastic reception of Dangiwa’s appointment as Minister of Housing and Urban Development has been validated by his outstanding achievements over the past year. His holistic approach to tackling long-standing sector challenges reflects a deep understanding of the issues. Even more notable is his boldness in addressing these challenges directly and his steadfast commitment to transparent implementation.

    As the next 12 months unfold, it will be crucial to observe how Dangiwa’s legacy is solidified in Nigeria’s housing development history. For the average Nigerian, especially those in middle-to-low-income brackets, the ultimate objective is a transformed sector that ensures access to decent, affordable housing—providing shelter, safety, and dignity. The Minister’s initiatives to streamline the sector and introduce sustainable funding opportunities have rekindled hope for a brighter future in housing, promising meaningful improvements in the lives of many.

    Dangiwa’s vision for a re-imagined housing sector is becoming reality, and his courage in addressing long-standing challenges highlights his leadership. As the nation observes with anticipation, it is evident that the Minister’s steadfast commitment to fostering a more inclusive and sustainable housing sector will define his enduring legacy.

  • How Nigeria can tackle politics of housing supply, by Mosadoluwa

    How Nigeria can tackle politics of housing supply, by Mosadoluwa

    The chairman of Harmony Gardens and Estate Development Limited, Saheed Mosadoluwa, has urged the federal government to come up with effective solutions to address the challenges of housing supply and policies in the country.

    Mosadoluwa pointed out that as the nation approaches a population of 240 million, it is facing a severe housing crisis that is posing significant challenges to its economic stability and social fabric.

    He emphasized the urgent need for a comprehensive approach to bridge the growing housing deficit in the country.

    Mosadoluwa also noted that over the past seven years, Nigeria has experienced an average annual population growth of 389,000, yet both federal and state authorities have struggled to keep up with the increasing demand for housing.

    He said the ‘Renewed Hope’ Housing Initiative, was a step in the right direction but remains inadequate in addressing the medium to long-term supply shortages.

    “The stark reality is that fewer houses lead to skyrocketing prices, exacerbating affordability challenges for millions of Nigerian citizens.

    “The consequences are dire: higher prices, affordability challenges, and a widening gap between demand and supply.

    “It’s time to acknowledge the politics of economic instability, which has discouraged investment in housing. Rising interest rates and high construction costs have tempered short-term demand and construction,” he said.

    Mosadoluwa emphasised that it was time to transcend the political ramifications of economic instability that have hindered investment in housing.

    He added that rising interest rates and escalating construction costs have tempered both short-term housing demand and construction activities, leaving many potential homeowners in limbo.

    According to him, at the recent Bridging Housing Deficit Summit 2024 held at Harmony Gardens Lekki-Epe expressway, industry leaders and stakeholders gathered to discuss sustainable housing policies that could serve as a foundation for the next four federal elections.

    “The summit underscored the complexity of Nigeria’s housing deficit, which is unlikely to dissipate without concerted efforts from all sectors.

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    “Cyclical and structural challenges abound, but the best policy approach is to restore long-term balance in market indicators.

    “Government engagement with private developers and foreign investors is very crucial.

    “The government at all levels must engage in meaningful dialogue with private developers and foreign investors.

     “The cyclical and structural challenges in the housing sector require collaboration and innovative solutions.

    “The summit illuminated the multifaceted nature of Nigeria’s housing crisis, revealing that the best policy medicine involves restoring long-term balance in key market indicators.

    “This includes re-evaluating financing mechanisms, incentivizing private investment, and streamlining bureaucratic processes that often delay construction projects,” he added.

    Mosadoluwa said that as the country prepares for future elections, the urgency of addressing the housing deficit could not be overstated.

    He added that political leaders must prioritise housing as a critical component of national development, recognising its implications for economic growth, social stability, and overall quality of life for citizens.

     “We need to fasten our seat belts and prepare for a long ride,” he cautioned.

    The chairman said that the size of the housing problem is daunting, but with collaborative efforts and a commitment to sustainable development, there is hope for a brighter future.

    “In conclusion, Nigeria stands at a crossroads where the intersection of economics and politics will shape its housing landscape for generations to come.

    “It is imperative that all stakeholders come together to forge a path toward sustainable housing solutions that can accommodate the nation’s growing population while fostering economic resilience.

    “The size of the housing problem demands a comprehensive solution. The time for action is now; the future of Nigeria’s housing supply depends on it.”

  • FG flags off construction of 216 housing units for civil servants

    FG flags off construction of 216 housing units for civil servants

    The federal government has launched the construction of 216 housing units for civil servants at the Public Service Institute of Nigeria (PSIN) in Abuja.

    The out going Head of the Civil Service of the Federation (HCSF), Dr. Folasade Yemi-Esan, led the flag-off ceremony located at the Public Service Institute of Nigeria (PSIN), Kubwa, Abuja.

    Dr. Yemi-Esan emphasised the administration’s unwavering dedication to ensuring that civil servants benefit from affordable housing initiatives under President Bola Tinubu’s government.

    She urged civil servants to take advantage of these opportunities, assuring them that the houses would be of high quality and affordable.

    “We understand that the earnings of civil servants are not much, so we try as much as possible to get the best quality.

    “Civil servants will not get those opportunities anywhere else. The houses will be on a first-come, first-served basis,”she said.

    During the groundbreaking ceremony of the Federal Integrated Staff Housing (FISH) Estate, Yemi-Esan was accompanied by the Head of the Civil Service Designate, Mrs. Didi Esther Walson-Jack, and several Permanent Secretaries from the Federal Civil Service.

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    In addition to the housing project, Yemi-Esan commissioned a new indoor sports complex built by PSIN. She encouraged civil servants to regularly engage in physical activities to maintain their physical and mental health.

    Dr. Abdul-Ganiyu Obatoyinbo, the Administrator of PSIN, lauded the sports complex as a lasting legacy of Yemi-Esan’s administration, highlighting its role in promoting the well-being of civil servants.

    He announced that the complex would be named in her honor, acknowledging her significant contributions to civil service welfare.

    “These projects are part of our efforts to realize Pillar 6 of the Federal Civil Service Strategies and Implementation Plan (FCSSIP 25), which prioritizes staff welfare to boost productivity and service delivery.

    “Sports offer a healthy outlet for stress and support mental well-being, aligning with the Renewed Hope Agenda’s focus on sports, entertainment, and culture,” Obatoyinbo stated.

  • Firm seeks solution to housing problem in Nigeria

    Firm seeks solution to housing problem in Nigeria

    In response to the increasing demand for shelter, Resavation, an innovative property renting solution, aims to address the challenges house seekers face in finding suitable accommodation in Nigeria.

    Stephen Adeyemo, the CEO of Resavation, stated that the company provides detailed and reliable accommodation options through its unique features, helping customers choose from a list of available houses.

    “Resavation offers a comprehensive online search tool that allows tenants to browse through a wide range of available apartments. By connecting with verified agents and property owners, tenants can rest assured that the listings are legitimate and trustworthy. 

    “The platform includes detailed property descriptions, high-quality photos, and virtual tours, enabling tenants to inspect properties remotely. 

    “This feature is particularly beneficial for those who may be relocating from different cities or countries, saving them the time and expense of physical visits. Once a suitable property is found, tenants can securely pay their rent online through Resavation robust payment system, which ensures that transactions are safe and efficient.”

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    Adeyemo noted that Resavation has also offered in place for property owners, agents, and real estate companies to advertise their houses and properties to potential tenants. 

    “Resavation provides an excellent platform for property owners, agents, and real estate companies to list their properties. The easy-to-use interface allows them to upload property details, photos, and virtual tour videos, making their listings more attractive to potential tenants. 

    “Additionally, Resavation includes tools for organizing property inspections, helping agents and owners manage their time more effectively. By using the platform, they can also receive rental payments promptly and securely, reducing the risks associated with traditional payment methods.”

    Speaking on the importance of shelter to man, Adeyemo said quality shelter helps in creating a sane and safe environment for a man, reducing the risk of anxiety and mental illness. 

    “Quality shelter promotes stability and safety, which reduces stress and anxiety. It provides a safe place for rest and relaxation, promoting a sense of belonging and personal dignity. This stability can benefit overall mental health by improving sleep, lowering worries, and increasing emotional well-being.”

    Resavation offers a wide range of home listings where tenants and house owners can apply within and be rest assured that the listings are legitimate and trustworthy.

  • Govt plans to build 50,000 housing units – Minister

    Govt plans to build 50,000 housing units – Minister

    Minister of Housing and Urban Development, Ahmed Musa Dangiwa says, President Bola Ahmed Tinubu plans to build 50,000 housing units across the country to create jobs, uplift lives, and boost economic development.

    The minister stated this yesterday in Lafia at the ground-breaking of the 250-housing unit Renewed Hope Estate in Nasarawa, adding that the ceremony is a continuation of the nationwide groundbreaking exercise that President Tinubu had launched early this year in Karsana, Abuja with 3,112-housing units.

    According to the minister “Under phase one of this programme, we plan to deliver a total of 50,000 housing units across Nigeria. This includes 7 Renewed Hope Cities that will have between 500 and 1,000 housing units per site in each of the six geo-political zones in the country and the FCT, while the renewed hope estate will have 250 units per site in the remaining 30 states.

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    “With this housing programme, we plan to unlock the massive potentials of housing development to create jobs, uplift lives, and boost economic development. This is in line with the Renewed Hope Agenda of Mr President to stimulate inclusive growth, lift 100 million Nigerians out of poverty, and build a $1 trillion economy,” he said

  • Fed Govt begins building of 250 housing units in Osun

    Fed Govt begins building of 250 housing units in Osun

    Federal Ministry of Housing and Urban Development is to build 250 housing units in Osun State, the Minister, Mr. Ahmed Dangiwa, has said.

    He spoke yesterday in Osogbo during the groundbreaking ceremony of the project.

    Dangiwa said the housing project was under the ‘Renewed Hope Cities and Estates Programme’ of the ministry.

    He said the estate would comprise 50 units of one bedroom semi-detached bungalows, 150 units of two bedroom semi-detached bungalows and 50 units of three bedroom semi-detached bungalows.

    Dangiwa added that the housing units were projected to be completed in the next three months

    He said the housing programme was launched in February by President Bola Ahmed Tinubu, with the inauguration of 3,112 housing units in Karsana, Abuja.

    “Under phase one of this programme, we plan to deliver 50,000 housing units across Nigeria.

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    “This will include seven ‘Renewed Hope Cities’ that will have between 500 and 1,000 housing units per site in each of the six geopolitical zones and the FCT.

    “The Renewed Hope Estates will have 250 units per site in the remaining 30 states,” he said.

    Dangiwa said the housing project was also aimed at unlocking the massive potential of housing development, creating jobs, uplifting lives, and to boost economic development, in line with the Renewed Hope Agenda of President Tinubu.

    He said the project is also to stimulate inclusive growth, lift 100 million Nigerians out of poverty and build a one trillion dollar economy.”

  • Transforming lives, communities through affordable housing

    Transforming lives, communities through affordable housing

    Addressing Nigeria’s housing crisis requires innovative solutions. With a deficit of 28 million homes and an estimated N21 trillion needed, the Ministry of Housing and Urban Development is spearheading transformative efforts for affordable housing, BOLAJI OGUNDELE reports

    Nigeria’s housing crisis, characterised by a 28 million home deficit as of 2023, requires an estimated N21 trillion to resolve. Stakeholders in the industry believe the current administration is addressing this challenge with innovative solutions tailored to different population segments.

    Ahmed Musa Dangiwa, an architect and expert in housing and urban development, was appointed to lead this critical effort.

    At a recent Ministerial Sectoral Briefing in Abuja, marking one year of the administration of President Bola Tinubu and nine months of Dangiwa’s leadership as the Minister of Housing and Urban Development, he highlighted the ministry’s achievements and future plans. This briefing provided an opportunity for officials to present their progress to the public. The Minister emphasised the ministry’s dedication to creating an efficient housing market and ensuring access to secure, decent and affordable homes for all Nigerians. A cornerstone of this vision is the Renewed Hope Cities and Estates Development Programme, launched earlier this year.

    This ground-breaking initiative aims to plan, design and develop modern, sustainable cities and estates that offer affordable housing solutions while fostering vibrant, inclusive communities. By focusing on urban development and housing infrastructure, the programme seeks to enhance the quality of life for Nigerians across various income levels. Nigeria is grappling with a housing crisis, with a deficit of 28 million homes as of 2023 and an estimated N21 trillion needed to address it. To tackle this issue, the administration has crafted innovative solutions for various population segments.

    Key objectives of the Renewed Hope Cities and Estates Development Programme include increasing the availability of affordable housing units, initiating urban and slum upgrading programmes, implementing policies that promote inclusivity, and fostering public-private partnerships to boost housing production and urban infrastructure development. Under this programme, the Federal Ministry of Housing and Urban Development aims to transform the urban landscape, improve living conditions, upgrade infrastructure, and provide essential services in informal settlements. By addressing the needs of vulnerable and marginalised groups, such as persons with disabilities, women and the elderly, the initiative underscores the government’s commitment to social equity and sustainable urban development.

    The ambitious phase one of the Renewed Hope Cities and Estates Development Programme is set to revolutionise the housing landscape in Nigeria by delivering a total of 50,000 housing units across the country. This initiative represents a significant step towards realising the vision of providing secure, decent and affordable homes for all Nigerians. As part of the plan, the Renewed Hope Cities will feature 1,000 housing units per site in strategic locations within each of the six geo-political zones and the Federal Capital Territory (FCT). These integrated living communities are designed to cater to individuals from all income brackets, offering a variety of housing options, including one-bedroom flats, two-bedroom flats, three-bedroom flats, terraces, and duplexes.

    In contrast, the Renewed Hope Estates are tailored to meet the needs of low- and medium-income earners, with each site accommodating 500 housing units in the remaining thirty states. These estates will feature one, two, and three-bedroom semi-detached bungalows, designed with flexibility in mind to allow for expansions as beneficiaries’ incomes grow over time. To ensure that the housing units are accessible to a wide range of prospective homeowners, the programme offers various affordable ownership options. These include single-digit mortgage loans with repayment terms of up to 30 years provided by the Federal Mortgage Bank of Nigeria, Rent-to-Own schemes that allow beneficiaries to gradually transition to homeownership through manageable instalments, and outright purchase options for high-income earners.

    With a total budget of N126.5 billion approved from the 2023 Supplementary and 2024 Budgets, the programme is well-funded to support the construction of housing units, slum upgrades and urban renewal projects nationwide. Currently, estates are under development in 12 states, while cities are taking shape in three key locations: Abuja, Yobe, and Lagos. Contractors have hit the ground running, with work underway to deliver the first phase of 3,500 housing units. Additionally, the Federal Ministry of Housing and Urban Development has forged partnerships with reputable developers through Memorandums of Understanding (MoUs) to accelerate the development of 100,000 housing units across the country. These initiatives underscore the government’s commitment to addressing inequalities, promoting homeownership, and creating sustainable communities that foster economic growth and social well-being for all.

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    Recent developments have seen the commencement of work on an additional 3,112 housing units through Public-Private Partnerships (PPP). This brings the total number of housing units currently under construction to an impressive 6,612, marking a major milestone in the government’s efforts to address the housing needs of Nigerians. A key strategy employed to enhance affordability and promote integrated living for low- and medium-income earners is the implementation of cross-subsidy schemes within the Renewed Hope Cities. Under this concept, housing units will be sold at commercial rates, with a significant percentage allocated for sale at concessionary rates to members of the Nigeria Labour Congress and the Trade Union Congress. This approach aims to ensure that affordable housing remains accessible to those who need it most, fostering inclusive communities and social well-being.

    The Renewed Hope Housing Programme is not only about providing shelter, but also serves as a catalyst for economic growth. The construction and development of new housing areas are expected to create a substantial number of employment opportunities, stimulate local businesses, and attract investments. The delivery of 50,000 housing units under phase one is projected to generate approximately 1,250,000 direct and indirect construction jobs, with additional economic benefits derived from the value-chain effects such as increased demand for building materials and services.

    In line with the commitment to expanding access to affordable housing, the Ministry is set to roll out another batch of Renewed Hope Estates comprising 250 housing units each in six additional states, totalling 1,500 housing units. This initiative is part of the broader strategy to provide diverse housing options and support homeownership for a wider segment of the population. To streamline the process of acquiring homes under the Renewed Hope Cities and Estates Programme, the Ministry recently launched an Online Housing Portal. This digital platform aims to simplify the home-buying process, enhance transparency, and make it easier for prospective homeowners to explore available housing options and access relevant information.

    In addition to the housing initiatives, the Ministry is also actively engaged in the National Slum Upgrade Programme under Phase 1. This programme targets a total of 26 sites nationwide, focusing on improving essential services such as water supply, solar streetlights, access road rehabilitation, drainage construction, waste management, and sanitation services. Under the leadership of the Federal Ministry of Housing and Urban Development, the Renewed Hope Housing Programme has been unwavering in its commitment to fast-track the sale and occupation of housing units across the country. With a focus on inclusivity and affordability, the programme has adopted strategies to cater to the diverse housing needs of Nigerians.

    To facilitate the sale of homes and accommodate different income segments, the Ministry advertised expression-of-interest forms with four subscription windows, including outright payment, mortgage, rent-to-own, and instalment payment options. This approach has garnered significant interest with a total of 8,925 expressions-of-interest received, reflecting the broad appeal of the housing options offered. In a recent development, the Ministry released the first batch of offer of new provisional allocation letters for successful applicants who opted for outright payment. This milestone represents a significant step towards ensuring that more Nigerians have access to secure and affordable housing solutions, supporting the government’s vision of providing decent homes for all citizens.

    In alignment with the Renewed Hope Agenda and the commitment to ensuring that all Nigerians, including the most vulnerable and underprivileged groups, have access to dignified accommodation, the Ministry is in the process of creating a National Social Housing Fund (NSHF). This initiative aims to establish a sustainable framework that will provide financial support for social housing projects across the country, recognising housing as a fundamental human right that should be accessible to all. The National Social Housing Fund (NSHF) is poised to become a vital pillar in Nigeria’s quest to provide affordable housing for its citizens. Drawing from various funding sources such as the removal of fuel subsidy, post-tax profits from pension fund administrator investments, corporate contributions, and public-private partnerships, among others, the NSHF aims to significantly expand access to affordable housing and promote social inclusion. By leveraging these diverse funding streams, the NSHF is expected to play a pivotal role in the development of vibrant and sustainable communities across the country.

    In tandem with efforts to establish the NSHF, the Ministry of Housing and Urban Development has embarked on a wide-ranging reform initiative aimed at transforming the housing sector. Central to this initiative is the Housing Reform Task Team, which comprises experts, stakeholders, and industry representatives tasked with developing a robust framework for reforming the housing sector. This includes reviewing key legislations, such as the Land Use Act and National Housing Fund Act, to promote increased investment in housing and enhance legal protections for homeowners.

    Recognising the importance of building materials in housing affordability and sustainability, the Ministry has also established a Building Materials Manufacturing Task Team. This team is focused on boosting local manufacturing of building materials to lower costs, stimulate economic growth, and reduce reliance on imports. To expedite the delivery of housing projects, the Ministry has assembled a Multi-Agency Project Delivery Team comprising professionals with expertise in housing development, urban planning, infrastructure, finance, and project management. This team is dedicated to fostering collaboration among housing agencies to accelerate the implementation of housing projects.

    Furthermore, the Ministry is committed to streamlining access to land for housing development projects. By addressing existing bottlenecks and simplifying land acquisition procedures, the Ministry aims to facilitate quicker access to land resources and catalyze the growth of the housing sector. In a ground-breaking move, the Ministry has also initiated efforts to reform the obsolete Land Use Act of 1978. By establishing a dedicated Land Reforms Task Team and proposing amendments to the Act, the Ministry aims to unlock the full potential of the housing sector by fostering inclusivity and streamlining land administration processes. As these task teams make significant progress towards their objectives, the Ministry remains steadfast in its commitment to implementing reforms that will reshape the housing sector and create a brighter future for all Nigerians. Through strategic partnerships, legislative reforms, and targeted interventions, the Ministry seeks to foster sustainable growth, expand access to affordable homes, and create vibrant/inclusive communities across the nation.