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Tag: Shelter Afrique

  • Shelter Afrique doles out $24m for Landmark Centre’s relocation plans

    Shelter Afrique doles out $24m for Landmark Centre’s relocation plans

    The Lagos /Calabar Coastal Highway is one of the legacy projects of the current administration but has come under some heavy criticisms. One of the affected entities, Landmark Event Centre owned by Paul Onwuanibe, has planned to relocate his headquarters from Lagos after his alleged beach demolition.

    The founder in a statement said Landmark Africa which is behind the Landmark Beach Resort in Lagos, is planning to relocate its Nigerian headquarters and expand its operations.

    CEO and founder Paul Onwuanibe revealed that the company will extend its reach into two other African countries, establish a presence in three Nigerian states, and move its headquarters out of Lagos.

    This decision comes in the wake of the April 2024 demolition of the Landmark Beach Resort, which Onwuanibe described as a devastating setback, resulting in an estimated $80 million loss.

    Appearing on The KK Show – Key to Keys podcast, featured on Eden Oasis’ official YouTube channel, Onwuanibe explained that the demolition highlighted the need for geographical diversification to reduce the risks of concentrated investments.

    Read Also: Shelter Afrique to improve on $220 million worth of housing loans

    He also shared plans to relocate Landmark Africa’s entire events and tourism platform outside of Nigeria.

    “We’re going to have some diversification. We’re going to diversify to two other African countries. We’re going to go into three different states.

    “We’re going to move our Nigeria Headquarters location out of Lagos. And we’re going to move our entire sort of events and tourism platform out of Nigeria,” Onwuanibe said.

    Onwuanibe shared that Landmark Africa received interest from governors in 12 states across Nigeria, with three states selected for new ventures after a six-month evaluation. He did not disclose the names of the states or new African countries for expansion.

    Onwuanibe detailed the impact of the April 2024 Landmark Beach Resort demolition, revealing the short notice and ongoing financial strain.

  • Fed Govt, Shelter Afrique to produce 5,000 housing units

    Fed Govt, Shelter Afrique to produce 5,000 housing units

    The Federal Government has entered into a partnership with Shelter Afrique, a pan-African housing development finance institution, to construct 5,000 housing units across the country.

    Speaking on the strides of his ministry in the past one year, Dangiwa emphasised that this initiative marks the first time the Ministry is engaging in such a direct and practical partnership with a multilateral institution.

    “We are set to sign a Housing Development Partnership with the Shelter Afrique Development,” he stated.

    “Under the Partnership, the Pan-African housing institution will support the Renewed Hope Programme with advisory services and financing of competent developers,” he added.

    Dangiwa also underscored Nigeria’s significant stake in Shelter Afrique, noting that the country is the second-largest shareholder in the institution, following Kenya.

    Read Also: Shelter Afrique to improve on $220 million worth of housing loans

    “Nigeria holds over $29m in share subscription in ShafDB. This partnership is not just timely but necessary as we work towards bridging the massive housing deficit that our nation faces.”

    The minister lauded the commitment of Shelter Afrique’s leadership, particularly acknowledging the presence of the Managing Director, Mr. Thierno Hann, who travelled from Kenya to attend the event.

    “I want to especially thank the Managing Director of the Bank, Mr Thierno Habib Hann, for coming from Kenya to be a part of today’s event. His presence underscores the importance of this partnership,” he said.

    This initiative is a component of the broader Renewed Hope Agenda of President Bola Tinubu’s administration, which seeks to increase the stock of affordable housing in Nigeria.

    Dangiwa outlined the progress made under this agenda, including the groundbreaking of 6,612 housing units across 13 locations nationwide.

    “Construction is ongoing at all these project sites,” Dangiwa said, adding that the homes are expected to be completed within three months.

    The minister also highlighted the job creation potential of these projects, stating that the 6,612 housing units are expected to employ over 165,000 skilled and unskilled Nigerians.

    “At an average of 25 jobs per house, these units are providing jobs for thousands of Nigerians, further contributing to economic growth,” he said.

    He said  further more the ministry will develop additional housing  units in Kano, Enugu, Bornu, Rivers, Nassarawa and Lagos  under the Renewed Hope Cities and Estates Programme.

    “We plan to do groundbreaking for 2,000 housing units Renewed Hope Cities in Lagos and 1,500 housing units in Kano next month,” he revealed.

    As the ministry continues to implement these ambitious housing projects, Dangiwa called for increased budgetary allocations to sustain the momentum.

     “We made a solemn request for the budgetary allocation of a minimum of N500bn per annum for the Renewed Hope Cities and Estates Programme,” he said, noting that this request was well-received by the National Assembly.

    Dangiwa reiterated the Federal Government’s commitment to making a difference in the housing sector and expressed gratitude to President Tinubu for the opportunity to serve.

  • Shelter Afrique to improve on $220 million worth of housing loans

    Shelter Afrique to improve on $220 million worth of housing loans

    Shelter Afrique Development Bank (ShafDB), said it is committed to improve upon its $220 million worth of housing loans already approved in Nigeria with $117.6 million disbursed.

    Managing Director and Chief Executive Officer ShafDB, Mr. Thierno-Habib Hann revealed plans to explore more areas of entry into the Nigerian housing market, pledging its support to assist the country in her effort to bridge the housing deficit.

    He said the institution, is enthusiastic about the Pulaku Resettlement Scheme of the Federal Government, which aims to provide shelter for displaced Nigerians affected by banditry in selected states across the country.

    Hann stated this during the Institutions one-week working mission to meet critical government leaders towards deepening its capacity and housing development plans in the country.

    Read Also: Shelter Afrique to improve on $220 million worth of housing loans

    He said, “We are enthusiastic about the PULAAKU Resettlement Scheme of the Federal Government, which aims to provide shelter for displaced Nigerians affected by banditry in selected states across the country. I will like to express the bank’s interest in playing a part in such initiatives like PULAAKU and the National Social Housing Fund (NSHF), as we looks to improve upon our $220 million worth of housing loans already approved in Nigeria with $117.6 million disbursed.

     “We are looking for more ways to collaborate with Nigeria on housing delivery. We believe the PULAAKU Initiative, and the National Social Housing Fund provide us an opportunity to further drive our mandate, which is to eradicate slums in Africa. We have done a lot of work already with several financial institutions, reputable developers, and some state governments, and we intend to do more.

    “Since October 2023, the Bank has undergone major transformations thanks to the leadership of the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, who is the Chairperson of the institution’s 42nd AGM Bureau. We are better positioned to create wealth, increase GDP, and address security through our housing finance model.”

  • CSOs urge Shelter Afrique to reduce housing deficit

    CSOs urge Shelter Afrique to reduce housing deficit

    A coalition of civil society organisations has urged Shelter Afrique to help Nigeria reduce its housing deficits.

    Executive Director of the group, Paul Samuel said this during a press conference in Abuja yesterday.

    The coalition commended the transformation of Shelter Afrique into Shelter Afrique Development Bank.

    Samuel said the transformation promised to reshape the landscape of Africans housing and urban development.

    While commending Shelter Afrique Shareholders for approving the revised Statutes to elevate the pan-African housing and urban development finance into a dynamic Development Bank during the Extraordinary General Meeting (EGM) in Algiers, Algeria, Samuel urged Shelter Afrique to live up to its expectations in Nigeria as the second largest contributor of fund to the institution.

    He said the renaming of Shelter Afrique to Shelter Afrique Development Bank (ShafDB) reiterated a renewed sense of purpose, solidifying the finance status as a transformative and sustainable development bank solely dedicated to advancing urban housing and related infrastructural development across Africa.

    He reminded Shelter Afrique that Nigeria was in housing deficit of over 40 percent of Africa total deficit that need an urgent action.

    He said: “Shelter Afrique must know that Nigeria has a population of over 200 million people, so , their impact must be noticed seriously across our country.

    Read Also: Agency upgrades Shelter Afrique’s outlook

    cit is as a result of banditry, flooding, kidnapping and other natural disasters. We seriously call on Shelter Afrique to immediately collaborate with the relevant body or institution in tackling the housing deficit in Nigeria. This is our demand.

    “We are not begging but we are demanding that Shelter Afrique must do the needful now that they have transformed from Shelter Afrique, Shelter Afrique Development Bank with a vision on Housing and Urban Development.

    “What is more interesting now that our Minister for Housing and Urban Development, Arc. Ahmed Musa Dangiwa is the new chairman of SHAFDB, and while the chairman of the board of directors is also a Nigerian, Chii Akpoji.”

  • ‘FMBN, REDAN, Shelter Afrique to create $2b affordable housing fund’

    ‘FMBN, REDAN, Shelter Afrique to create $2b affordable housing fund’

    Some stakeholders have agreed to pool resources to tackle the housing problem headlong. This is by ensuring  improved access to credit facility and reducing development costs for low-income housing.

    The Federal Mortgage Bank of Nigeria (FMBN), Real Estate Developers Association of Nigeria (REDAN) and a pan-African finance institution, Shelter Afrique have joined forces to create a $2 billion affordable housing fund.

    The money, will be disbursed at $200 million yearly to developers, to help in financing the construction of a targeted 10,000 homes over the next decade.

    Activities to be generated from the construction works are expected to  create more than 150,000 jobs.

    “We agreed that we needed to bring in Shelter Afrique to work in partnership with REDAN to make available some funds over the next 10 years by providing REDAN members with the necessary construction finance that is required to drive the national housing model,” the Acting Managing Director of FMBN, Richard Esri, explained.

    Recently, the Federal Government announced it would waive an initial 10 per cent payment on mortgages below N5 million or $15,700, being administered by the FMBN. This is targeted at future homeowners planning to take out mortgages in the low-to-mid price range. According to the Centre for Affordable Housing in Africa, the average cost of a mortgage is $18,000, with interest rates at around 19 per cent as of last September. This move comes on the heels of the establishment of the Family Homes Fund by the government, last September.

    Aside from helping to develop more houses, the injection of the $2 billion fund is to keep mortgage rates in affordable housing schemes at well under the average 23 per cent, with a target of 9.99 per cent and payable over 20 years. Under this arrangement, prospective buyers are required to make an initial deposit of 10 per cent of the house value to qualify for these home loans; 70 per cent of the mortgages are expected to go to houses priced between N2.5m ($7, 900) and N4.5m ($20,000).

    Financed through the Sovereign Wealth Fund, Federal Government bonds and Bank of New York, the scheme will work as a public-private partnership (PPP). It is also expected to promote the development of primary mortgage institutions, which tend to have a narrow banking licence and are generally reliant on wholesale funding, making them more vulnerable in times of financial or economic crisis.

    These changes will come as welcome news to many Nigerians, with half of the population living on less than $1 a day. Furthermore, the minimum wage is currently around $60 per month, meaning home ownership is often out of reach for those in the low- to middle-income wage bracket.

    The Centre for Affordable Home Financing in Africa reports that a standard mid-level apartment in an urban area in the country can cost as much as $100,000, with rent averaging around $5, 000 a year; the situation has kept home-ownership rate at 25 per cent.

    Meanwhile, the mortgage penetration rate stands at about 0.6 per cent of gross domestic product (GDP).  The World Bank data which although is low by standards in more developed economies, puts Nigeria roughly in line with many other large African markets. The report also attributed low mortgage uptake to lack of awareness and cost, as high interest rates can make mortgages too expensive for middle-and low-income earners.

    According to the Oxford Business Group, a global research and consultancy company with a presence in over 35 countries, including the Middle East, Africa and Asia to the Americas, in order to begin filling Nigeria’s existing deficit of 17 million housing units as projected by the World Bank and to meet the increase in demand, the government will need to support the construction of 170,000 units per year over the next decade. With almost half of the country’s 170 million population residing in cities and urbanisation growing at an annual rate of 3.75 per cent, demand for affordable houses is also set to remain strong.

  • FMBN signs $2b MoU with Shelter Afrique, REDAN

    FMBN signs $2b MoU with Shelter Afrique, REDAN

    The Federal Mortgage Bank of Nigeria (FMBN) has signed a $2billion tripartite Memorandum of Understanding with Shelter Afrique, and Real Estate Developers Association of Nigeria (REDAN).

    The agreement, which was signed at the weekend, involves a commitment by Shelter Afrique to avail the sector of $2billion construction finance towards housing provision in Nigeria.

    The Acting Managing Director of the Federal Mortgage Bank of Nigeria, Mr. Richard Esin, said the collaboration was a “proactive step taken in recognition of the opportunities that would arise from the launch of a National Housing Model.

    He said: “The objective of the strategic collaboration is to harness each party’s competencies and strengths in the areas of training, research, advocacy, and mobilisation of financial resources, both international & domestic, in support of projects of mutual interest to ensure the successful delivery of affordable housing in Nigeria and involves a commitment by Shelter Afrique to avail the sector $2 billion construction finance towards housing provision in Nigeria.

    “The development is coming at an auspicious time in the life of the bank when it has moved from a deficit position to operating surplus in 2016, creating 736 individual mortgages up to the tune of N5.4billion within the period.

    “We are optimistic that the partnership would result in the growth of the sector and lead to an increase in the contribution of the sector to the nation’s Gross Domestic Product. He called for the commitment of all parties to the successful execution of the programme.

    The President of the Real Estate Developers Association of Nigeria (REDAN), Rev. Ugo Chime commended all the parties involved.

    He said the cooperation was a “strategic attempt to create a seamless interface from construction finance to mortgage finance and all in-between, towards easing the challenges faced in the sector.”

    He called for immediate recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) by the Federal Government, to ensure that it has the capacity to finance mortgages.

    He said the mortgage sector was expected to rise by annual $200million construction finance injection.

    The Managing Director/Chief Executive, Shelter Afrique’, Mr. James Mugerwa, said  the occasion was a turning point for the housing sector in Nigeria.

    He expressed delight to be part of “such strategic alliance, which aims to forge an end to end solution that addresses issues within the entire value chain, from supply to demand.”

    He called for commitment and dedication in order to achieve the set objectives.

  • FG earmarks N40bn for housing

    President Muhammadu Buhari on Wednesday said the Federal Government would spend about N40 billion to provide affordable housing for Nigerians.

    The President, who said this at the 35th Annual General Meeting (AGM) and international symposium of Shelter Afrique, on Wednesday in Abuja, noted that the fund would be used to implement a comprehensive housing development plan for the country.

    Represented by the Minister of the Federal Capital Territory (FCT), Mallam Muhammed Bello, Buhari, said Nigeria requires additional one million housing units yearly to reduce its 17 million housing deficit in order to avert a housing crisis by 2020.

    Buhari said: “We are, therefore, very much convinced of the catalytic development potentials of the housing sector and have accordingly, earmarked about N40 billion in the 2016 Budget to implement a comprehensive programme for housing development in Nigeria.

    “Nigeria with a population of about 170 million people and an annual population growth rate of 3.5 per cent requires a minimum of additional one million housing units per annum to reduce the much acclaimed national deficit of about 17 million housing units in order to avert a housing crisis by the year 2020.

    “The problem of housing the urban poor is not entirely new and I believe that different efforts must have been deployed in the past to confront it. But, even today, the problem is still with us. Such reality challenges us to re-assess our methodologies and evolve fresh strategies to meet the exigencies of these times.”

  • Affordable housing: Shelter Afrique, CMB sign N3.3b deal

    Affordable housing: Shelter Afrique, CMB sign N3.3b deal

    Shelter Afrique (SAf), a Pan-African housing finance and development agency, has signed an agreement with a real estate development company, CMB Building Maintenance and Investment Company Limited.

    The agreement, signed at the headquarters of the financial institution in Kenya, will provide  a loan of N3.3 billion to the firms.

    SAF’s Managing Director Mr. James Mugerwa and Managing Director of CMB, Mr Kelechukwu Mbagwu, signed for their firms.

    The cash is for the construction of Pearl Nuga Court Estate in Lagos, and also provide mortgage for off-takers that may want to key into the scheme.

    According to Mbagwu, the deal represents a step in the right direction as it fits into the vision of the government and other stakeholders to provide affordable housing for Nigerians.

    While agreeing that the private sector has the most strategic role to play in ensuring that housing deficit is reduced to its barest minimum, Mbagwu said the fundamentals of the real estate sector remains strong and healthy despite the turbulent economic terrain of last year.

    He urged the Federal Government to support the sector’s growth by creating and enforcing policies and laws that ensure that private sector development thrives through financial capitalisations and easily accessible construction finance.

    Mbagwu canvassed the government’s support.

    The Minister of Power, Works and Housing, Mr.Babatunde Fashola, in his inaugural ministerial briefing assured that the Federal Government will lead an intervention to increase housing supply by not only undertaking construction of public housing, but also by formulating policies that will invariably lead to private sector participation and ownership  to reduce the country’s housing deficit.

    Stakeholders have since lauded this initiative, as they see in it a further boost to tackle the housing shortage that is being faced in the country, especially when it is considered that the country’s proportion of urban dwellers rose from 10.6 per cent of total population in 1953 to 19.1 per cent in 1963; 35.7 per cent in 1991 and 48.2 per cent in 2006.

    Besides, the 2006 National Population Census projected the urban population in the country at 50 per cent of total population by last year, a figure expected to rise to 60 per cent by 2025. The effect of this is that up to three out of five urban dwellers live without adequate shelter and basic services.

    CMB with over 12 years in real estate is receiving the support as part of the pan-African finance institution’s support of the real estate sector.

    Through such strategic partnerships, the financial institution offers products and related services, which support the efficient delivery of commercial real estate and affordable housing. Shelter Afrique has over 30 years in the industry and is in partnership with 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.

  • Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank Plc has secured a $10 million development finance loan to support the real estate sector for Shelter Afrique, a Pan-African development finance institution focused on financing affordable housing in Africa.

    Speaking at the signing ceremony in Lagos, yesterday, the bank’s Managing Director/CEO, Segun Oloketuyi, said the facility underscores the confidence of local and international partners in the lender’s capacity to handle such transactions.

    He said Wema Bank is deeply committed to supporting the growth of real estate and affordable housing financing in the country, by providing access to loans as well as other value-added services, including financial advisory from its expert team of corporate banking professionals.

    Oloketuyi said Wema Bank remains a premier financial institution and Nigeria’s longest surviving lender with branches spread across 125 locations, adding that the bank provides a host of corporate banking, retail banking, electronic banking, treasury and trade services to its customers.

    The Managing Director, Shelter Afrique, James Mugerma, said his organisation remained committed to providing affordable housing in Africa, stating that the partnership with the bank through the grant of this facility, is another step in the right direction.

    He said strong mechanisms have been put in place to ensure that the viable projects get access to this fund. He also praised the unique nature of this transaction which not only provides project funding but also includes mortgage financing.