The federal government has reiterated its commitment in delivering affordable housing by providing mortgage financing that is easily accessible by Nigerians.
Minister of Housing and Urban Development, Arc. Ahmed Dangiwa made the disclosure on Tuesday at the opening ceremony of the 18th Africa International Housing Show (AIHS).
He said this year’s theme “Financing the Housing We Need” is important for Africa as a continent to adopt a ground-up approach and a domestic strategy that takes into consideration the peculiarities of housing needs as it will help in developing sustainable and resilient housing solutions that meet the needs of citizens.
Speaking on the challenges, he said “We have a dual challenge of inadequate housing supply to meet population growth and sub-standard housing which does not meet the conditions of Habitability, Safety & Security, Comfort, Sanitation, Accessibility, Infrastructure, Social Amenities, and Socio-Cultural adequacy as set out by United Nations (UN) and World Health Organisation (WHO).
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“In Nigeria for example, recent surveys show that 75% (i.e. 31.6 million) of the 42 million housing units in Nigeria are sub-standard. This means that our housing delivery strategies must combine urban renewal and the building of new houses to address Africa’s housing challenges,” he said.
Speaking on what government is doing to finance housing in Nigeria he added that “In January this year, we inaugurated four housing reform task teams focusing on producing blueprints that will guide us in improving land governance, strengthening federal housing agencies such as the Federal Housing Authority (FMBN) and the Federal Mortgage Bank of Nigeria (FMBN) and ensuring that they leverage their collective capacities to increase the stock of affordable units in our country.
“Another area of focus is encouraging the local manufacture of building materials. We aim 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.
“All the housing sector reform task teams are in the process of finalizing their reports and we are poised to examine and implement their recommendations to move the housing sector forward in our country,” Dangiwa further explained.
Speaking further, headed that the federal government had begun the implementing of the Renewed Hope Cities and Estates Programme aimed at delivering a total of 50,000 housing units across Nigeria under phase one.
“The cities are to have 1,000 housing units per site in one location in each of the six geo-political zones in the country and FCT, while the Estates will have 250 housing units per site in the remaining thirty (30) States. So far, we have done groundbreaking for a total of 6,612 homes in 13 locations across Nigeria,” he added.
Also in his welcome address, the Convener of AIHS, Barr. Festus Adebayo said the idea behind the theme, “financing and housing we need,” is critical to Nigeria’s growth and development by ensuring that the houses built by government and the private sector is used for what it is meant for.
He further stated that “We are also going to have nothing less than 500 exhibitors gathering together to showcase what they have and over 15,000 participants.
“The 2024 African International Housing Show is supported and organized in collaboration with the Federal Ministry of Housing and Urban Development And I am also happy to announce that our major partners for Africa International Show 2024 includes: the Dangote Cement Plc, Lafarge Cement Plc, Bua Cement Plc, Brains and Hamas, Urban Shelter, Federal Mortgage Bank of Nigeria, Federal Housing Authority Nigeria, Mortgage Finance Company, International Financial Corporation (IFC), Shelter Afrique and the shelter for affordable Housing Finance South Africa
“Similarly, the experts we have on ground today are going to provide us with insights and practical solutions on how federal and subnational levels can be able to finance Nigeria’s housing sector effectively,” the convener added.
Stakeholders speak
In her presentation, the head, Help-to-own-a-home Imitative at the Family Home Funds, Monsurat Mohammed stated that what Nigeria requires at the moment is affordable mortgage loans considering the high interest lending from banks.
According to her, Mortgage interest rates by commercial banks are very high at 26 per cent per annum of which very few can afford. We have less than 5 per cent of Nigerians accessing mortgage.
“Asides interest rates, other things include the cumbersome process, bureaucracy and economic instability among others,” she said.
On what the Family Homes Fund is doing, she added that “The initiative was introduced to link primary and secondary markets and also increase the housing value chain. So far, we have 58 project size 15 states, financed 15,000 homes. We have over 21,000 homes progressing at different levels. Also we have a lending Tenor of up to 20yrs,”
Also speaking, the Managing Director of Modern Shelter Systems and Services Limited, Abdulmalik Mahdi noted that mortgages are very important because the incomes are not so high in Nigeria.
He further suggested that “We need to look at how Primary Mortgage Institutions can streamline the process of accessing mortgage and reduce the bureaucratic process,”
Govt’s mortgage institutions capable of financing – MBAN
Similarly in his presentations, Mr Ebilate Mac-Yoroki, President of the Mortgage Bankers Association of Nigeria (MBAN) said government institutions are capable of providing housing financing.
“In my opinion, there is no reason to go to commercial banks because agencies like the National Pension Commission are doing a lot in that area. Total pension funds is about N20trn so 25 per cent of it designated for mortgage is about N5trn and so far we haven’t done even N500bn.
“Also family Homes Fund have been effective and even recently, we took people to family homes and in less than 2weeks, they have gotten their mortgage so there is no need to go to the commercial banks,” he said.
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