Ministry of Housing & Urban Development Plans Visionary Cross-Subsidization Initiative to Boost Inclusive & Affordable Housing The Ministry of Housing and Urban Development has revealed plans to introduce a groundbreaking initiative aimed at revolutionizing inclusivity and affordability in Nigeria through the introduction of cross subsidies in housing projects. This visionary strategy, championed by the Honorable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, promises to redefine housing accessibility by integrating a mix of low, medium, and high-end housing projects, ensuring inclusivity for Nigerians of all income brackets. Arc. Dangiwa, unveiled this innovative approach while reviewing affordable housing options presented by the Ministry’s Affordable Housing Building Design Committee. The Minister had established the Committee during his first week in office to review designs of Ministry’s projects and ensure that houses that the Ministry promotes fall within price-ranges that low- and medium-income earners can afford. The revised designs featured several cost-saving changes including organic one one-bedroom bungalows to lower cost of purchase while allowing beneficiaries the latitude to expand to two and three-bedrooms as his income increases, optimized space management, smart roofing techniques and basic internal finishings amongst several others.  In his remarks, Arc. Dangiwa commended the Design Team for their creativity. He also emphasized the necessity of embracing innovative concepts like cross subsidies to counter the challenges posed by inflation, the soaring costs of building materials, which have led to an increase in planned house prices.  "I am impressed with the work that the Affordable Housing Design Team has accomplished, thus far, in reducing the cost of houses that we plan to promote so that all Nigerians can benefit. While there is progress, the escalating cost of building materials has almost taken off all the savings from the revised designs. For us to achieve our goals, we have to think out of the box and embrace creative solutions. This is why we plan to work out a comprehensive framework for introducing cross subsidies in projects delivered through Public Private Partnerships and the agencies under the Ministry," stated Arc. Ahmed Dangiwa, the Minister of Housing and Urban Development. He explained that cross subsidies are important policy tools used by governments and urban planners to address housing affordability issues and promote inclusive urban development.  He added that the approach involves redistributing the costs and benefits of housing development across different income groups. “The reality of the affordable housing debate is that many civil servants and other Nigerians working in the public sector cannot even afford a decent mortgage with their salaries. Our mechanism will be to promote market-based prices for high end developments to those who can afford it, thereby subsidizing housing costs for lower-income households.” The Ministry's vision for implementing cross-subsidy is rooted in a commitment to social equity and inclusive urban development. By strategically channeling profits from high-end housing projects, the Ministry aims to promote a housing landscape where every citizen, regardless of income, finds a place to call home. This approach is not merely about constructing houses; it's about fostering communities where opportunities are equal, and prosperity knows no bounds. Arc. Ahmed Dangiwa further elaborated on the Ministry's ambitious objective: "We are not driven by profit but the desire to ensure that all Nigerians have access to decent and affordable housing. Through cross-subsidy, we aspire to create a blueprint for a harmonious society, ensuring that the benefits of growth are shared by all. We are transforming the dream of affordable housing into a tangible reality for our citizens."   About Cross Subsidies for Housing: Housing projects are designed with a mix of units catering to varying income levels. Market-rate units are priced higher, often reflecting the actual cost of construction and profit margins for developers. Within the same project, a certain percentage of units are allocated as affordable housing. These units are sold or rented at prices significantly lower than the market rate. Revenues generated from the market-rate units subsidize the construction and maintenance costs of affordable units. This subsidization allows lower-income families to access housing at a reduced cost. Cross subsidies ensure that diverse income groups can reside within the same community, promoting social integration and preventing the formation of economically segregated neighborhoods. ...

Dangiwa Successfully Steers Shareholder Approval for Transformation of Shelter Afrique to Shelter Afrique Development Bank   In a landmark achievement, the Hon. Minister of Housing and Urban Development, Architect Ahmed Musa Dangiwa, and Chairman of the 42nd Shelter Afrique Annual General Meeting (AGM) Bureau, played a pivotal role in steering the successful transformation of Shelter Afrique into Shelter Afrique Development Bank (ShafDB). The milestone was realized during the Extraordinary General Meeting (EGM) held in Algiers, the capital of Algeria, on October 4-5, 2023. Under the chairmanship Arc. Dangiwa, the EGM witnessed constructive discussions and resolutions on critical issues, culminating in the approval of Shelter Afrique's revised Company Statutes by its esteemed shareholders. This historic approval marks a significant milestone, paving the way for Shelter Afrique’s evolution into Shelter Afrique Development Bank (ShafDB). As a Development Finance Institution, ShafDB is poised to significantly enhance its financing capacity for affordable housing projects across Africa.   Arc. Dangiwa, presiding over the meeting, commended Shelter Afrique's Board and Management for their dedication to the organization’s restructuring. He acknowledged the collective efforts invested in this monumental continental task, recognizing the progress towards building pre-meeting sharerholder consensus on knotty issues by the competent leadership of Board Chairman, Dr. Chii Akporji, and Managing Director, Mr. Thierno-Habib Hann.   In his address, Architect Dangiwa emphasized the importance of unity and collaboration among shareholders, underscoring their pivotal role in addressing Africa's housing challenge. He urged for a renewed sense of purpose, dedication, and trust among shareholders to work collectively towards overcoming the housing deficit that has plagued the continent for decades.   “We must be humbled by the progress Shelter Afrique has made in over 40 years, and we must resolve to set aside all tolerable ancillary issues. It is our collective responsibility to fix Africa’s housing problem, and this requires sincerity of purpose, hard work, and trust,” Architect Dangiwa stated.   The transformation of Shelter Afrique into Shelter Afrique Development Bank (ShafDB) heralds a new era of accelerated progress, reflecting the organization’s commitment to addressing Africa's housing challenges with renewed vigor and determination.   About Shelter Afrique Development Bank: Shelter Afrique Development Bank (ShafDB) is a leading Development Finance Institution dedicated to providing financing solutions for affordable housing projects across Africa. With a focus on collaboration, innovation, and sustainability, ShafDB aims to transform the housing sector and improve the lives of millions of people in Africa. ...

Dangiwa Initiates Technical Collaboration on Social Housing with Algeria’s Ministry of Housing, Urban Planning, and the City   In a significant move toward ensuring efficiency and sustainable impact of planned social housing initiatives in Nigeria, Arc. Ahmed Musa Dangiwa, Nigeria's Minister of Housing and Urban Development, met with Mohamed Tarek Belaribi, Minister of Housing, Urban Planning, and the City, Algeria, at the Sheraton Hotel in Algiers. The ministers engaged in a fruitful discussion centered around sharing expertise and knowledge on social housing programs. The meeting was on the sidelines of the 2023 Extraordinary General Meeting (EGM) of Shelter Afrique which held from 3rd to 6th October.   In his remarks, Arc. Dangiwa underscored Nigeria's commitment to addressing its housing challenges under the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR. He revealed plans to rapidly increase Nigeria’s housing stock annually and create new cities across the country. He also mentioned the government’s plans to establish a National Social Housing Fund (NSHF) to cater to the housing needs of No income and low-income Nigerians and expressed eagerness to learn from Algeria's successful social housing model.   Minister Belaribi welcomed the hon. minister and his team while acknowledging the pivotal role housing plays in Algeria. He highlighted Algeria's remarkable progress, producing and distributing 1,160,000 housing units in 2020 and 400,000 units in 2022. Belaribi outlined Algeria's Integrated Cities approach, which includes incorporating schools, hospitals, roads, and ensuring security measures. He stressed the importance of urban and land development, citing the National Scheme on Urban Development and the creation of five new cities as pivotal steps.   Regarding social housing formulas, Belaribi outlined diverse approaches, including delivering units without any upfront payment, a rent-to-own scheme managed by the Agency of Amelioration and Development of Housing (AADH), and tailoring housing sizes based on income and family size. He also discussed the innovative National Bank on Housing, allowing subscribers to save for homeownership, thereby reducing the government's financial burden.   Minister Belaribi expressed readiness for collaboration, organizing meetings with key officials and offering Algeria's expertise in various fields. He emphasized the importance of establishing a formal agreement between the two ministries and proposed a comprehensive framework for joint efforts.   The meeting between the two ministers marked a crucial step toward international cooperation, fostering collaboration that promises significant advancements in social housing, benefiting the citizens of both Nigeria and Algeria. ...