The federation government and experts in the housing sector have admitted the need for alternative funding to bridge the housing deficit in the country.
Speaking at the event, they also identified the relevance of housing contributions and why employers should also be contributing to the fund.
In his contribution, Comr. Benson Upah of the Nigerian Labour Congress stated that one of the challenges of the housing sector is the limitation of the National Housing Act Law with contribution only meant for employees at 2.5 per.
“Housing funding is low because unlike pensions where both employer and employees contribute, the NHF only stipulates contribution for employees which is why contributions have been low and the law doesn’t have a penalty for people who fail to contribute.
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“The law should make it compulsory for employers to contribute because the housing sector needs funding that is why pension funds have up to N20 trillion and housing funds are barely N1 trillion,” he said.
He added that there should be intervention from the federal government and the states.
Also speaking, the Saadiya Aminu also advocated the need for lower rates for developers seeking mortgages as it will go a long way in reducing cost of housing.
She added that alternative funding for housing in Nigeria is critical for the federal government while exploring other partnerships with the private sector.
In his contributions, the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, said in line with President Tinubu’s Renewed Hope Agenda to ensure that all Nigerians, including those with no income, vulnerable, and underprivileged groups, have access to decent and dignified accommodation, the ministry is working to establish a National Social Housing Fund (NSHF).
“Potential sources of funding include, Budget Allocation, Executive Order, tax incentives, Private Sector Donations – Telecoms USSD, Development Finance Institutions, Housing Development Tax/Value chain Tax and Corporate Nigeria Home Sponsorship
“Additionally, as part of our land reforms we are exploring a partnership with the World Bank towards the implementation of a National Land Registration and Titling Programme. Through this programme, we aim to partner with state governments towards improving land formalisation from less than 10% to 50% in the next ten years.
“The federal government aims to establish building materials manufacturing hubs in each of the six (6) geo-political zones across the country so that we can lower the cost of construction materials and housing delivery. We are actively seeking partnerships towards the delivery of these hubs and are open to partnerships from technically and financially capable institutions,” he said.
1,000 renewed hope houses to be ready this year – Housing minister
Meanwhile, Dangiwa revealed that ground-breaking ceremonies have been carried out for 13 sites under the Renewed Hope Housing Scheme so far in different states.
He said the scheme which is funded by the 2023 supplementary budget is expected to have about 1,000 houses ready in December and 2,000 by the middle of 2025.
He said the spread of the estate covers the entire nation across all geopolitical zones and even cut across all political parties.
“We have one city in Kano and the other two in each geopolitical zone of the country. The project is covering the Labour Party, NIPP, PDP, and APC. We took them through the public-private partnerships that we are doing with some of the reputable developers, one of which is Karsana. We are building 3,000 sites there,” he said.
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