Tag: The Housing Development Advocacy Network (HDAN)

The Housing Development Advocacy Network (HDAN) has passionately appealed to the National Assembly to provide necessary support to Family Homes Funds Limited (FHFL), emphasizing its crucial role in delivering social housing across Nigeria.

The advocacy group stressed that sustained legislative backing is essential to ensuring affordable homeownership for low-income earners, particularly in light of rising construction costs and economic fluctuations.

The Executive Director of HDAN, Festus Adebayo made this call in a statement released in Abuja highlighting its long-standing struggle pushing for the establishment of a dedicated entity responsible for providing housing for low-income Nigerians.

The group acknowledged that the previous administration of President Buhari responded to this need by creating Family Homes Funds with a target to deliver substantial housing units, and since its inception, FHFL has delivered over 20,000 houses across various states.

This achievement underscores the organization’s capacity to contribute to addressing the nation’s housing deficit, yet challenges persist.

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The advocacy group pointed to the drastic increase in exchange rates and the consequential impact on the cost of building materials. Cement prices, for instance, have surged from about 2,000 naira per bag to approximately 10,000 naira, creating a substantial hurdle for affordable housing development.

In light of these challenges, HDAN is urging the government and the National Assembly to create incentives that enable low-income earners to access housing through Family Homes Funds. The group advocates for the support of initiatives like rent-to-own, student housing, and help-to-buy schemes, aimed at making homeownership more attainable.

HDAN also calls upon state governments partnering with Family Homes Funds to prioritise the allocation of completed houses to first-time homeowners, ensuring that the social housing program benefits its intended recipients.

The advocacy group insists that by reinforcing legislative and financial backing, the National Assembly can play a pivotal role in safeguarding and expanding affordable housing opportunities for millions of Nigerians.

Adebayo, emphasised the importance of continued support, stating, “The National Assembly must step up and ensure that Family Homes Funds receives the necessary backing to continue its vital work. Housing is a fundamental human need, and without affordable options, millions of Nigerians will remain in precarious living conditions. We have seen the impact of FHFL’s efforts, but they need sustained financial and policy support to scale up and reach more people.

The rising cost of construction materials has made it even more critical for the government to step in with strong incentives and funding mechanisms.”

The call for support comes amidst recognition of Family Homes Funds Limited’s strong financial standing and contributions to the housing sector. Rating agency Agusto & Co. recently upgraded FHFL’s rating from “A+” to “Aa-,” citing the company’s financial stability, commitment to affordable housing, and strategic approach to sustainable development.

The rating upgrade also reflects FHFL’s rising developmental impact, strong capitalisation, good liquidity and funding profile, experienced management team, and good asset quality while reaffirming FHFL’s commitment to leveraging its financial strengths and strategic partnerships to create lasting impacts in Nigeria’s housing sector.

Family Homes Funds Limited has been at the forefront of reducing Nigeria’s housing deficit by financing the development of affordable homes and promoting innovative paths to homeownership. The company also aims to foster the development of relevant skills, support the industry, and generate employment.

Since its establishment, Family Homes Funds Limited has achieved significant milestones, including a strong focus on affordable housing, recognition through numerous awards for their housing initiatives and finance products, consistent maintenance of strong credit ratings, successful issuance of Sukuk bonds, and the implementation of impactful housing projects across the country.

The FHFL has commissioned housing estates for low-income families, handed over homes to civil servants and families affected by conflict in areas such as Chibok, Borno State among others, and is actively involved in large-scale projects like the Renewed Hope Cities and Estates project and student housing programs across the country.

The Housing Development Advocacy Network (HDAN) has commended the Federal Government for its N250 million commitment to addressing Nigeria’s housing deficit.

This was highlighted during the body’s visit to the Ministry of Finance Incorporated (MOFI), where the organisation expressed confidence in the Ministry’s readiness to transform the housing sector.

During the visit, HDAN observed MOFI’s robust plans to tackle both the demand and supply challenges in the sector.

Specifically, HDAN noted that MOFI’s approach aligns with its own advocacy goals which has seen it over the years promoting through their parent organisation, the Africa International Housing Show.

“We are happy that MOFI is ready to raise money from the capital market which is one area that has not been tapped in Nigeria. We are hopeful that from 2025 our sector will witness a new development in the area of financing for affordable housing and mortgage financing on the demand side of housing,” HDAN added.

They however cautioned MOFI to learn from the previous housing experiments of the federal government.

“We urge you to deal only with professionals and estate developers that have excellent records of delivery and performance,those with loan defaulting records must be totally avoided.”

The Executive Director of HDAN, Festus Adebayo, lauded MOFI’s proactive measures but also provided constructive input to further refine its strategies.

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He therefore called on estate developers that are not fraudulent to rally support for the success of this new idea of building one million houses by President Bola Ahmed Tinubu.

Dr Ugochukwu Chime, former Chairman of the Federal Government Reform Committee on Land who was at the meeting emphasised the critical need for MOFI to address the issue of land titling, according to him this created a significant barrier to accessing housing funds.

Similarly, Emmanuel Akinwumi, another key stakeholder at the meeting urged the government to review outdated housing and mortgage laws to improve sector performance and ensure the success of the new initiatives.

MOFI’s plans include close collaboration with key housing agencies, including Family Homes Funds Ltd. and the Federal Mortgage Bank of Nigeria. The company has also pledged support to Primary Mortgage Institutions (PMIs), aiming to enhance their operational capacity to meet the growing demand for affordable housing.

Meanwhile, the CEO of MOFI, Dr. Armstrong Takang said the Federal Government has launched the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a significant step toward addressing Nigeria’s housing deficit. This fund is a cornerstone of the One Million Homes Presidential Initiative, designed to offer affordable housing through innovative financing solutions.

The MREIF will operate as a market-driven framework, integrating pension funds and other financial sector resources to provide affordable mortgage options, particularly to pension account holders.

Takang emphasised that the fund is a pivotal step toward broadening homeownership opportunities and addressing long-standing housing challenges.

According to him, transparency and market efficiency will underpin the fund’s operations, strengthening the mortgage market and creating sustainable pathways to homeownership.

To ensure the success of the MREIF, the government has engaged key figures from the pension and financial sectors.

These include the Accountant General of the Federation, Dr. Oluwatoyin Madein, and executives such as Wale Odutola of ARM Pensions, Funmi Ekundayo of STC Trustees, and Saadu Jijji of PAL Pensions.

Their collective expertise in fund management, real estate financing, and investment advisory will shape the fund’s structure and deployment.

The MREIF offers a groundbreaking opportunity for pension account holders, granting access to mortgage loans at reduced interest rates. This innovative approach aims to dismantle the barriers that have hindered affordable homeownership for many Nigerians, aligning with the government’s broader vision for an inclusive and sustainable housing sector. 

The Housing Development Advocacy Network (HDAN) has voiced serious concerns over the recent allocation of over 200 acres of land in Abuja’s Phase 5 area for mass housing. This allocation, reportedly granted to a single organisation, has sparked debates on the current state of housing policy, land use, and urban planning within the Federal Capital Territory (FCT). In a media chat, HDAN Executive Director, Festus Adebayo urged the Minister of the FCT, Nyesom Wike, to adopt a more inclusive, balanced approach that prioritises sustainable housing development, economic growth, and job creation over immediate revenue generation.

Adebayo highlighted ongoing demolitions in Phase 5, where over 100 housing units have already been turned down on the minister’s orders. According to him, these demolitions stem from the fact that this area has yet to be officially designated as a development zone and remains ungazetted.

Adebayo cautioned that the hurried allocation and clearing of land in such an unplanned area sets a concerning precedent, with negative implications for property owners, developers, and the economy of the FCT. 

He emphasised the need for comprehensive planning before large-scale housing developments are sanctioned, citing that Phase 5’s lack of formal planning has led to unnecessary property destruction and financial loss.

HDAN’s investigation also revealed that many of the land recipients in the Phase 5 allocation intend to sell their parcels rather than develop them. “Why allocate land to individuals or entities that may lack the resources or intention to build?” Adebayo questioned. He argued that allocating large portions of land to those who prioritize profit over development undermines the larger goals of housing policy and urban growth. 

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He also highlighted a policy inconsistency, stating that the FCT’s Mass Housing Policy generally restricts allocations to a maximum of 10 hectares in urban areas and 20 hectares in rural areas. The recent over 200-acre allocation clearly deviates from this policy, raising questions about its legality and oversight.

Adebayo also voiced concerns over organisations that are in partnership with AMAC, and some of these organizations’ land have been taken over in the course of the recent allocations. From the records made available to HDAN, we have found out that some of those allocations have been made some years ago where the concerned developers have also paid compensation and even received invoice for payments from the development control.

There will be need for FCDA to look into the loss of these investors, who have already paid compensation to the settlers of this land. “We need clarification on whether AMAC and FCDA will address these losses faced by those partners in housing developments,” he noted.

HDAN urged Minister Wike to use land resources to address the housing shortage, foster job creation, and strengthen the FCT’s economy.

Adebayo appealed to the FCT Minister to consider land use as a tool for public good, advocating for projects that could generate employment, increase housing access, and drive overall economic development. “This is a unique opportunity for the Minister to reposition the Urban and Regional Planning Department within the FCT,” Adebayo said, emphasizing that past failures to effectively manage planning have contributed to today’s housing crises.

HDAN further suggested that any future mass housing allocation should be preceded by consultations with stakeholders and professional bodies to align on urban planning goals and ensure accountability.

Calling for a shift in focus, Adebayo encouraged Minister Wike to view land management not just as a source of revenue but as a means to drive sustainable development within the FCT.HDAN is a research, non-profit, volunteer and non-governmental organization that is promoting affordable housing in Africa, with over 5,000 members drawn from all professions in the housing and construction industry.