DANGIWA WOOS FOREIGN INVESTORS FOR RENEWED HOPE HOUSING PROGRAMME AT SAUDI REAL ESTATE FORUM
Tuesday, January 28, 2025, Riyadh - Hon. Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has called on global investors in Saudi Arabia to take advantage of the huge opportunities in Nigeria's housing sector, specifically the Renewed Hope Cities and Estates Programme of the Federal Government.
Speaking in a Panel Discussion at the Saudi Arabia Real Estate Forum yesterday, he disclosed that Nigeria's huge housing deficit offers enormous business opportunities, and the Renewed Hope Cities and Estates Programme serves as a low-hanging fruit for investors in the Middle Eastern nation to take advantage of and get good returns.
The Forum themed, "Balance and Innovation in the Real Estate Landscape." was held at the Four Points Hotel in Riyadh and featured esteemed panelists including HE Eng. Abdullah Al-Attiya, Minister of Municipality, Qatar, and HE Dr. Abdulla Muththalib, Minister of Construction, Housing, and Infrastructure, Republic of Maldives.
"Nigeria's real estate sector contributed around 5.2% to the nation's GDP in 2024, and will increase in market volume to $2.25 trillion by the end of 2025. Despite this, there is still tremendous opportunity for investment, especially in the Residential Real Estate segment. Nigerians need homes now more than ever and you can partner with the Nigerian government to deliver these houses at scale," he said.
Dangiwa noted that Nigeria faces an estimated housing deficit of 28 million units, a situation exacerbated by rapid urbanization and migration. "The government is tackling this by prioritizing large-scale housing delivery through public-private partnerships, innovative financing, and government-led interventions. Additionally, efforts are underway to engage state governments in unlocking land for affordable housing projects, as difficulties in land acquisition continue to hinder progress," he added.
Speaking on the theme, Dangiwa set the context by emphasizing that housing is a fundamental driver of economic growth, social stability, and national development. However, achieving a balance in the real estate sector between affordability and profitability means that the challenges of sustainability and cost efficiency, as well as policy and private sector incentives must be addressed.
"In Nigeria, rapid urbanization, population growth, and economic pressures necessitate a rethinking of housing delivery strategies. The Federal Government is committed to addressing these challenges through initiatives like the Renewed Hope Cities and Estates Programme, the National Social Housing Fund, and strategic partnerships with local and international stakeholders," he said.
Addressing the tension between affordable housing and profitability for developers, he acknowledged concerns that affordability often conflicts with commercial viability. "To counter this in Nigeria, the government is using incentives such as bankable offtake guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing.
"The planned National Social Housing Fund aims to mobilize long-term concessional financing to ensure accessibility for lower and middle-income Nigerians. Furthermore, innovative models such as off-plan sales and bulk purchasing by cooperatives are being explored to reduce financial risks for developers while ensuring affordability for buyers," he noted.
The Minister also touched on the subject of sustainability, stressing that energy-efficient buildings, the use of local materials, and smart construction techniques ultimately lower maintenance and operational costs. On this note, he said the Ministry is working with international partners like IFC EDGE to integrate green building practices into Nigeria’s housing sector through capacity building, technology transfer, and financial incentives. "Additionally, the establishment of Building Materials Manufacturing Hubs across Nigeria’s six geopolitical zones is expected to reduce reliance on imported materials, cut costs, create jobs, and support sustainable housing solutions," he said.
He further assured the investors of the government's commitment and actions towards enhancing the affordability of Nigerians to purchase homes through mortgage. Dangiwa pointed out that high-interest mortgage rates, which can reach up to 30% per annum, have historically made homeownership difficult for many Nigerians. To address this, he said the government is expanding the Federal Mortgage Bank of Nigeria’s reach and recapitalizing it with N500 billion to provide more accessible single-digit mortgage products.
"Additionally, collaborations with the Ministry of Finance Incorporated are in progress to leverage the Nigerian Capital Market and mobilize private sector funding for housing development. The Real Estate Investment Fund, targeting 12% mortgage interest rates instead of the market’s 28-30%, aims to provide bankable offtaker guarantees for developers. Meanwhile, rent-to-own schemes are being introduced to facilitate homeownership through flexible payment structures, including a rental assistance product that enables qualifying applicants to pay rent in monthly installments rather than upfront lump sums," he added.
Technology and digital transformation in real estate also formed part of the Minister’s discussions. He underscored the importance of PropTech in digitizing property transactions and management, making them more efficient and secure. He revealed that this was being done in collaboration with the World Bank, who is undertaking a National Land Registration and Documentation Programme to streamline land titling, enhance transparency, and improve formalization in the sector.
"Localization of housing production remains a priority, with the Ministry championing modular and prefabricated housing technologies to accelerate delivery and reduce costs. By promoting local production and reducing dependence on expensive imports, Nigeria aims to build more homes efficiently and affordably," he stressed.
Declaring that Nigeria's Real Estate sector is open for business, Dangiwa reaffirmed the government’s commitment to creating an enabling environment for real estate growth through strong policies, regulatory frameworks, and investment incentives. "Collaboration with the Nigeria Governors’ Forum is also ongoing to improve land access, streamline approval processes, and enhance urban planning policies. Furthermore, urban renewal and slum upgrading initiatives are being expanded to improve living conditions in rural, semi-urban, and urban areas," he explained.
While he acknowledged the headache investors feel with regards to achieving balance in the sector, he urged all not to treat balance and innovation in real estate as mutually exclusive, noting that they can be pursued simultaneously through smart policies, innovative financing, sustainable construction, and digital transformation. He reiterated his commitment to advancing policies that make housing more accessible, affordable, and sustainable in alignment with the Renewed Hope Agenda of the Tinubu Administration.
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