Ministry of Finance Incorporated Explores Collaborative Areas with Housing Ministry   *  We have Structures on ground to leverage on -  Dangiwa *      FMHUD, Key Collaborator -  MOFI   Minister of Housing and Urban Development Arc Ahmed Dangiwa has told the Ministry of Finance incorporated (MOFI) that housing ministry has so many existing structures on ground for MOFI to leverage on, in its quest to carry out its supervising function of government enterprises.   Dangiwa stated this when he received members of the Ministry of Finance Incorporated (MOFI) on a visit to his ministry and presented a strategic partnership proposal to the ministry    MOFI, is a subsidiary under the office of the Accountant General of the Federation, responsible for supervising assets and investments of the federal government owned enterprises, interests, estates and rights.    The Minister told MOFI that, the Federal Housing Authority (FHA), an Agency under the Housing Ministry has branches in all the 36 States of the federation, including  lands with various mortgages to cater for the housing needs of Nigerians, urging MOFI to work with FHA regardless of their developers to create a healthy competition.   He said "most of the federal government assets are being managed by the ministry of housing and urban development.   " One of the deliverables of the ministry under this administration is reforming the Housing Institutions and the ministry is doing everything possible to recapitalize the Federal Mortgage Bank. FHA has been partially commercialized to invest in the capital market by constructing and selling  houses", he stated    In the same vein, Dangiwa disclosed that, the Ministry plans to generate Two Trillion Real Estate Investment, which is in line with President Bola Ahmed Tinubu 's Renewed Hope agenda and inorder to make this a reality, he added that the ministry decided to partner with Public Private Partnership which is the biggest aspect of the funding structure.     Speaking earlier, the Chief Executive Officer and managing Director of the MOFI, Dr. Armstrong Ume Takang, told the Minister that the essence of their visit was to support what Federal Ministry of Housing and Urban Development is doing to use government platform to  mobilize funds.    He explained that proper Titles to Assets especially landed properties can unlock capital to do other things, adding that most properties both in rural and urban areas don't have proper titles including  government properties.   The MD described the ministry of housing as a key collaborator in achieving their primary objective of long term, low- cost mortgage financing at scale for Nigerians.   He stated that asset optimization in line with National Housing and Urban Development goals, facilitates capital base for housing and urban development renewal and ensures seemless integration between asset management and urban planning initiatives.   Dr. Takang further disclosed that MOFI's aim is to create jobs through construction and urban development projects, skills development programs in real estate and property management, as well as affordable housing initiatives for low and middle income families.   " There should be a Mechanism where people can find affordable loans with long term payment plan of monthly payment, in that case, the demand will be high and when demands are high you are creating more jobs for developers, not only meeting the demands but also improving Urban development", he explained    "We need more money to build houses, we need more money to provide mortgages, we need to be creative on how we source the money", He added.   ...

We are Set to Deliver 1000 Housing Units In Five Months Time - Dangiwa    … says housing ministry can generate N300bn from sale of houses in two years    Minister of Housing and Urban Development has disclosed that 1000 housing units of the Renewed Hope Cities is slated to be delivered by the end of the year, with the other units to be delivered by mid next year for commissioning by President Bola Ahmed Tinubu, at the pilot phase of the project in Karsana Abuja.   The Minister made this disclosure while briefing the Senate Committee on Lands, Housing and Urban Development, during their oversight visit to the Ministry.   He explained that a consortium of developers were contracted to deliver a total of 100,000 housing units all over the federation under the Renewed Hope Cities and Estates programme, 20,000 units of which will be in Abuja with the pilot phase at Karsana to house 3112 housing units.   He also noted that the developers are to provide the financing for the units, the land and off-takers, while the Ministry guarantees their loan with bankable off-takers guarantee, to enable them access the finance.   Dangiwa made a comprehensive three dimensional presentation of the work ongoing at the Renewed Hope City site in Karsana to the Senate Committee, stating that the developers have accessed funding through Family Homes funds and other means, and are on site working to ensure they deliver in due time.   He informed that a steering committee comprising the honourable Ministers, the Permanent Secretary and the consortium of developers was set up, as well as a monitoring committee made up of officials from the Ministry, Federal Mortgage Bank, Family Home Funds, the developers and other institutions, who monitors the projects on a weekly basis.   The Minister during his briefing, presented some documents earlier requested by the Senate Committee to include: a comprehensive briefing of the activities of the Ministry, the budget performance of 2023 and 2024 appropriation act covering all budget lines including the 2023 supplementary budget act, a detailed implementation of the Renewed Hope Cities and Estates programme.   Others are; detailed implementation of the Renewed Hope Urban Renewal and Slum upgrade programme, detailed progress report of the National Housing Programme Nationwide, a list of the federal government properties under the control of the Ministry Nationwide, details of partnership between the Ministry and the private sector or other public institution for urban development, amongst others.   While fielding questions from the journalists during the oversight visit, the Housing Minister was delighted to inform that the Senate Committee advocated for more funding for the Ministry to the tune of N500bn, further expressing hope that the Ministry can return up to N300bn to the coffers of government from the sale of houses in two years time, if given a budgetary allocation of N500bn.   He also noted with gladness that the ongoing efforts of the Ministry were highly appreciated by the Senate Committee, having done groundbreaking for the Renewed Hope Cities and Estates in 13 sites which is funded by the 2023 supplementary budget.   “We also took them through the public private partnerships that we are doing with some of the reputable developers to which Karsana is one of it where we are building 3112 unit; we have discussed also about the Slum Upgrade and Urban Renewal which cuts across 28 sites across the country. Most of these projects are almost completed and we are about to commence the 2024 budget”, he added.   On their part, the chairman of the committee on lands, housing and Urban Development Senator Aminu Waziri Tambuwal, noted that their visit signaled the commencement of oversight activities of the committee for the 2023 supplementary and 2024 budget, pointing out that committees of the senate are saddled with the responsibility of oversighting the activities of Ministries, Departments and Agencies under them, as required under the constitution of the federal republic of Nigeria.   He said that the 2023 supplementary budget has advanced, hence the need to visit the ministry and proceed to some sites where the appropriations are being implemented to see for themselves and access what is going on.   Tambuwal thanked the Minister for his cooperation, adding that it was in the interest of the country to make sure that monies appropriated are spent in accordance with extant laws and regulations.   He as well consented that more funds needs to be allocated to the Ministry giving that housing is one sector that will generally distribute wealth to the lowest of the low. ...

Nigeria Needs 550,000 Housing Units Annualy To Curb Housing Deficit - Dangiwa    *  Ministry ready for partnership with UK Build and Construction Trade Mission   Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has expressed optimism that the huge housing deficit facing the country can be brought to a halt if a total of 550,000 housing units are built annually at the cost of N5.5Trillion, over the next ten years.   Dangiwa made this expression in a meeting with delegates of the UK Build and Construction West Africa Trade Mission, at the Ministry’s Headquarters in Abuja.   While noting that Nigeria has a 200 million population with an annual growth rate of 2.5 percent per annum, the Minister said that the current state of housing in the country was far from where it ought to be, giving the 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 the United Nations (UN) and World Health Organization (WHO).   He informed the team of delegates that the Ministry was combining urban renewal and building of new houses as part of strategies to address the problem of substandard houses, as the findings by a recent survey by PwC housing industry shows that 75% (i.e. 31.6 million) of the 42million housing units in Nigeria were sub-standard.   The Minister enumerated the action plans the Ministry has taken since his administration in rewriting the housing and urban landscape to include; the inauguration of Four Housing Reform Task Teams namely: Housing Institutions Reform Task Team, the Multi-Agency Project Delivery Task Team, the Land Reforms Task Team and the Building Materials Manufacturing Hubs Task Team, “All the housing sector reform task teams are in the process of finalizing their reports”, he stated    Arc. Dangiwa reviewed the implementation of the Renewed Hope Cities and Estates Programme launched by President Bola Ahmed Tinubu, GCFR, in February with the groundbreaking of a 3,112-housing unit in Karsana, Abuja.   He explained that phase one of the program aims at 50,000 housing units across Nigeria with the Cities having 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, 250 housing units per site in the remaining thirty (30) States.   “So far, we have done groundbreaking for two Renewed Hope Cities under PPP (FCT and Kano), and Renewed Hope Estates in twelve States (Ebonyi, Abia, Akwa Ibom, Delta, Osun, Benue, Nasarawa, Oyo, Katsina, Yobe, Gombe and Sokoto), making a total of 6,612 homes”, he further explained.   He said the funding for the projects was from a mix of the Ministry’s 2023 Supplementary and 2024 budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and Public Private Partnerships with reputable developers.   Arc. Dangiwa further stated that the programme aims to address social inequality by providing a broad range of affordable ownership options which includes single digit and up to 30-year mortgage loans to be provided by FMBN, Rent-to-Own options and Outright Purchase for high income earners.   “We have also made cross subsidy a key part of our efforts to enhance affordability for low-medium income earners to foster integrated living. Under this concept, the housing units built in the Renewed Hope Cities will be sold at commercial rate while a substantial percentage will be sold at concessionary rates to low and medium income Nigerians”, he added.   The Minister also underscored the economic impact of the Renewed Hope Cities and Estate project growth giving that the construction and development of the new areas will generate employment opportunities, stimulate local businesses, and attract investments.   Accordingly, he informed the team about the launch of an online portal to ease the process of acquiring homes being built under the Renewed Hope Cities and Estates Programme; “The platform has recorded over 28,000 applications since its launch. This is helping us to plan”, he noted.   On the Ministry’s Urban Renewal and Slum Upgrade Programme, Dangiwa was delighted to inform about an expansion, “Under Phase 1 of the Programme, the Ministry has projects ongoing in a total of 26 sites nationwide which includes four (4) sites in each of the six regions of the country totaling twenty four, and two in the Federal Capital Territory (FCT)”.   He said key services of water supply, solar streetlights, rehabilitation of access roads, construction of drainages and waste management and sanitation services amongst others, were provided at the identified sites.   In addition, the Minister revealed that the Ministry was working to establish a National Social Housing Fund (NSHF) that would ensure that all Nigerians, including the no income, vulnerable, and underprivileged have access to decent and dignified accommodation, with potential sources of funding to include Budget Allocation, Executive Order – Tax Incentivs, Private Sector Donations – Telecomms USSD, Development Finance Institutions, amongst others.   Dangiwa as well told the team of delegates about a partnership with the World Bank towards the implementation of a National Land Registration and Titling Programme which aims to partner with State Governments towards improving land formalisation from the current statistics of less than 10% to 50% in the next ten years.   He requested partnership proposals from the UK Build and Construction Trade Mission for the Ministry’s consideration in the areas of the Renewed Hope Cities and Estate, Urban Renewal and Slum Upgrade Programme, as well as the building material hub, in order to work towards delivering on the Renewed Hope Agenda of President Bola Ahmed Tinubu.   Earlier, the spokesperson of the delegates from the UK Build and Construction West Africa Trade Mission, the deputy Country Director, Morayo Adekunle, sought for partnership in investment opportunities, and providing funding solutions for the housing sector in Nigeria.    The delegates expressed willingness to collaborate and understand areas where the Ministry needs their global experience, through the infrastructure project authority arm of the UK which is the main infrastructure expertise for the UK government, working globally to support governments in capacity buildings, trainings, and preparation of all the projects that needs advisory, on a government to government level.   The team further requested for a working group to be set up at the Ministry for the purpose of engaging and scoping out opportunities, while they provide the needed technical support for the group. ...