Feb

09

2017

The federal government has reiterated that it will consolidate on the various existing housing projects across the nation as a way of boosting the economy and taking Nigeria out of the present economy recession.

The minister of Power, Works and Housing, Mr Babatunde Raji Fashola, SAN, stated this while presenting the 2017 budget proposal of the Housing Sector of the ministry at the Joint Committee on Works, Power, Housing and Urban Development recently.

The minister, while giving an overview of the 2016 appropriation noted that despite the delay in budget passage of 2016 coupled with the process of finalization/standardization of the prototype designs for the National Housing Projects which was concluded around December, the ministry has issued award letters to competent and successful contractors.

The contractors, who have since been mobilized, have moved to their various sites to commence work. He further stated that the ministry was only able to achieve about 57 per cent of the estimated budget appropriation in 2016 due to paucity of funds and delay in releases, adding that the ministry will have done better if sufficient funds were released for designated projects.

Fashola said that the country will soon begin to feel the impact as laid-off workers have been re-absorbed, more are being employed, goods and services are in exchange and the local economy of the various project locations/sites around the country are now taking shapes.

While giving the broad framework of the proposal for 2017, the minister noted that the highlight of this year’s budget will focus mainly on the National Housing Programme, completion and award of new federal secretariats in some states of the federation and payment of outstanding local debt to contractors, adding that this in the overall will positively impact on the nation’s economy.

The chairman, Joint committee on Works, Power and Housing Urban Development, Hon. Ahmed Babba Usman Keita thanked the minister and his team for their efforts and requested that the minister should furnish the committee with a detailed breakdown and clarifications of the proposed 2017 budget to help in facilitating necessary appropriation for the ministry.

Hon. Keita also assured the minister that the committee will use every constitutional means available to it to ensure the release of adequate funds to the ministry.

Sep

25

2016

Theme: "Housing and Africa’s Growth Agenda" at PDTF Centre, Central Business District, Abuja, 14th -16th September, 2016. By The Honourable Minister of Power, Works & Housing; Babatunde  Raji  Fashola, SAN.

Protocols

I am delighted to address you on the occasion of this 2016 Annual Conference and General Meeting of the African Union for Housing Finance (AUHF) holding in Abuja, Nigeria. The political will and momentum of the present administration in her housing sector agenda are further invigorated by this conference taking place few months after the June 2016 National Housing Summit. You will recall that the outcome of the recent National Housing Summit identified Housing Finance as one of the major pillars necessary for realizing Affordable housing delivery in Nigeria apart from others like Land, Concessions/incentives, Off-taker Strategy and General Skills Acquisition. It is indeed, heartwarming and reassuring to note that AUHF is an association of Mortgage Banks, Building Societies, Housing Corporations and other organizations involved in mobilizing funds for housing on the African continent. Also that the goals of AUHF includes promoting and facilitating housing finance and unlocking its multiplier effects on National economies, hence leading to Africa’s economic growth. I understand that the Conference attracts stakeholders from across the African Continent, all with the purpose of advancing investment in affordable housing.

2.     Let me begin by thanking the Nigerian Mortgage Refinance Company (NMRC) and other partners for hosting this important conference. The hosting of AUHF 2016 conference in Nigeria could not have come at a more auspicious time than now that Nigeria needs aggressive unleashing of new housing finance investments and opportunities. I will also like to thank all the stakeholders and experts from Africa and around the world for coming together to proffer solutions to the age long challenge of providing housing finance for Africans, especially Nigerians that are facing harsh economic challenges.

3.     Housing, we know is critical to every human development and fundamental right of every citizen. Therefore, Housing is central to this Administration’s policy thrust. However, housing a population of over 180 million is an arduous task that cannot be left for Federal Government alone, especially now that the Government’s revenue and the economy is  under pressure.  The fund to support the construction and mortgages for the end-users is a big challenge for the government. The production cost versus the selling price of the present housing stock is beyond the reach of majority of Nigerians.  Demand for affordable housing has grown over the years as a result of population explosion, rural-urban drift and search for higher quality of life. This demand has rapidly overwhelmed the supply capacity of existing Government resources. Many years of inadequate investment and poor maintenance culture have left Nigeria with a significant housing deficit which is slowing down the country’s development and economic growth and will clearly require close collaboration from stakeholders like the AUHF. The above demanding task is the mandate of my Ministry, Federal Ministry of Power, Works and Housing. Therefore, all stakeholders especially the Private sector and AUHF must play major role in this process of creating innovative housing finance in Nigeria.

4.     Every Nigerian’s dream is to have a roof over their head! Hence, for an average Nigerian "owning a house" is a mark of economic success and security.  Housing is also believed to be a long term investment that protects that investment against high inflation and the unpredictable economic down turn. Therefore, provision of housing is a major tool to reduce corruption. Why is it so difficult for the average Nigerian to realize this dream? Lack of Housing Finance in the public and corporate institutions and double digit housing loans are the major culprits while others include land for housing, population explosion, high cost of building materials, inflation that brings about unemployment and decreased purchasing power of the low and medium income earners.

5.     The major housing Finance trends and developments in the Nigerian market can be summarized by tracing the historical tendency of the influence of the financial sector in the housing industry. In 1956, a Secondary Mortgage Institution called Nigerian Building Society (NBS) assumed the role of the main conduit for housing finance delivery. NBS was a British and Nigeria partnership arrangement. Nigeria’s housing finance development can be classified under major political periods, namely pre-independence (1914-1960), post-independence (1960-1979) and a second and subsequent civilian administrations (1979 to date). However, the mortgage institutions decree No. 53 of 1989 led to the establishment of the following; Primary Mortgage Institutions (PMI) as mortgage savings for on-lending property development and mortgage creation. And, the Secondary mortgage institution, the Federal Mortgage Bank of Nigeria (FMBN), to function as the Apex mortgage institution for regulation.  While the National Housing Policy of 1991 was a bold step by the Federal Government of Nigeria to address the challenge of lack of finance for housing development and mortgage.  The National Housing Fund (Act. No. 3) of 1992 is a collating reservoir of long term funds in terms of monthly contributions from workers in the public and private sectors. Unfortunately, most Nigerians see mortgage loans from Government as part of their share of the "national cake" leading to high default rates. This has forced the Government to encourage prospective home owners to approach commercial banks who regrettably have high interest rates.  Thus, the Government who is supposed to be a major player in the provision of homes is now seemingly not on the frontline. The Government established the Nigerian Mortgage Refinancing Company (NMRC) to help in reducing the cost of mortgage loan by improving market efficiency.

6.     From the inception of Government initiative in organized housing finance system to date, only a meager sum have so far been injected to the system. This accounts for less than 0.5% of the Gross Domestic Product (GDP) as compared to other climes (like United Kingdom, South Africa etc) due to the inability of financial systems in providing low cost finance that meets the need of low and medium income earners. Therefore, the Secondary Mortgage institution (FMBN) should be strengthened by ensuring full compliance with the National Housing Funds (NHF) Act by affected stakeholders, like the Central Bank, commercial banks, insurance companies, Mutual and Trust Fund administrators.  However, I am happy to note that with the greater participation of the private sector in housing and embracing the new initiatives of this Administration, the journey to sustainable housing delivery is on course.

7.     Ladies and Gentlemen, it may interest you to note that the current Administration has taken cognizance of the housing sector as an important area requiring priority attention for reinvigoration and revitalization. This accounts for the appreciable budgetary allocation to the sector in the current annual estimate. This vision is increasingly being energized by the Federal Ministry of Power, Works and Housing. Only recently, the Ministry organized a National Housing Summit, where stakeholders met and examined the numerous constraints militating against the provision of affordable housing in Nigeria and proffered a clear, sustainable and strategic blueprint to mitigate same. Identified as a critical factor in the provision of affordable housing was lack of access to construction finance by developers including high risk in current mortgage finance structure which does not support the buying-off of houses to enable developers recoup their investments on time. The Summit resolved that there was need for necessary machinery to be put in place to promote appropriate construction finance schemes. AUHF members are hereby challenged in this regard. In the summit also, various definitions of affordable housing were adduced. However, the consensus from these definitions revealed that there is no one-size-fit all definition for Affordable Housing. The indices that should be used for defining Affordable Housing would include Segregation, Stratification, Classes of people and their income bracket, not more than one-third net household income of the target group and equity contribution of end-users.  

8.     I am happy to note that despite the challenges that housing delivery has encountered in the country over the years, the renewed vigor and policy re-orientation of this Administration have set the agenda for Housing revolution. In this regard, the Ministry has produced six (6) designs of one bedroom, two-bedroom, three-bedroom flats, bungalows and condominiums that will represent the Nigerian House which responds to our cultural diversity. Another key area of achievement is the pursuit and promotion of local content and standardization of building components such as doors, windows, tiles, roof boards and other accessories to be produced by local manufacturers as part of our support for local industries SMEs and in pursuit of diversification and job creation. Effort is already being made to embrace and deploy modern technology to mass production of housing in all the States of the Federation and FCT using the Traditional procurement platform and the Contractor Finance Initiative model, to reduce the housing deficit. 

9.     To make the Housing Sector attractive, viable and stimulate growth, the present Administration plans to de-risk lending to approved Housing Developers. This will entail the government providing guarantees and other credit enhancement to developers. Government therefore plans to issue promissory notes to reduce Developers financing requirements. Government recognizes that provision of leverage and guarantees are critical in attracting private sector funds into the industry thereby creating thousands of affordable houses each year as well as generate considerable employment and commercial activities. These are some of the far reaching contribution of the Finance Minister during the Housing Summit.

10.     Ladies and Gentlemen, I wish to state here that much discussion has been held on the housing deficit. There is therefore need to change the story to begin to discuss the housing opportunities. Regardless of issues facing the sector, real estate projects are increasingly being launched and completed in Nigeria. With the present Administration’s many incentives, new investors are expected in the market to continue to deliver positive results.

11.     It is on this note that I call on all stakeholders, especially members of the African Union for Housing Finance here present to join hands with the Federal Government towards the realization of its objectives in providing affordable housing to the people. As agent of change, members are enjoined to borrow a leaf from Nigeria and influence their respect home governments to domesticate or localize their housing options to reflect the peculiarities and expectations of the people as well as provide the private sector the needed impetus to invest in the sector.

12.     Finally, I wish to state that though the challenges to the sector are real and obvious, we are convinced that with the renewed commitment of this Administration, coupled with strengthened collaborations with all stakeholders in the industry, the desired revolution in the housing sector will be achieved in not too distant future.

13.     I wish you all very engaging and thoughtful deliberations and thank you for listening.

Mar

21

2017

* As Minister delivers President’s thank you message to young men, women at various construction sites in the North East

* Artisans, carpenters, bricklayers, welders, food vendors, suppliers hail Minister, Federal Government at Taraba, Gombe National Housing Project sites

* National Housing Programme currently going on in 33 States in the country

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has undertaken an extensive inspection tour of on-going infrastructure projects in the North East Zone saying the rapid progress being made on the projects and the employment opportunities created in the process were a manifestation of President Muhammadu Buhari’s determination to achieve economic recovery and create jobs through housing, roads and general infrastructural development.

Fashola, who spoke in Taraba and other States in the course of the four days tour, told workers at the site of the State’s National Housing Programme that the whole idea behind the road and Housing development projects going on now across the country was to create jobs for the teeming unemployed youth, get those who had lost their jobs back to work and, thereby, energize the economy.

The Minister, who was received by the obviously excited workers with chanting of praise for the Federal Government as they waved and hailed him with their raised fists and working implements, assured Nigerians that the present administration was committed to empowering, especially, the vulnerable in the society such as the artisans, welders, bricklayers, carpenters, food vendors, suppliers of building materials and others.

As the Minister waved back and moved round the site of the National Housing Programme in Taraba State and engaged several of them in a chat, those who were working on the walls and other areas within the site gathered round to hear him even as he marched their excitement by posing such questions as when the worker was engaged, what he was doing before his engagement, whether he loved the job and the pay among others. An excited worker, Rilwan Adamu, who answered all the questions at the site of the National Housing Programme in Jalingo, Taraba State, praised the government for providing jobs for them.

Abubakar Umar also answered similar questions from the Minister at the site of the Housing Programme in Gombe State while an artisan, Jeremiah Barnabas, chatted with him at the site of the 40MW Hydro Power Plant in Dadin Kowa, Gombe State.

Thanking the workers on behalf of President Buhari, who, he told them, had asked him to greet them for contributing to the rebuilding and growth of their country, Fashola further encouraged them to be committed to their work as their contribution would help to put the nation’s economy back to shape and make the country prosperous for every Nigerian.

Addressing the workers, Fashola pointed out that the objective of the Federal Government was to get the youths back to work adding that the programme would energize the economy as artisans, carpenters, bricklayers, welders, food vendors, suppliers and many others engage in activities that put money in their pockets and food on their tables.

The Minister told them, “This is all what it is about; it takes care of the vulnerable members of our society. That is what Housing does; it energises the industry and it energizes employment. You will see trucks moving in and out, you will see bricklayers, you will see carpenters, you will see welders, you will see food vendors; and this is what we are igniting across the whole country”.

“That is why President Muhammadu Buhari said this year’s Budget is a Budget of Growth, getting people who have lost their jobs previously back to work, putting money in their pockets and restoring their dignity so that every morning they can tell their wives, they can tell their husbands ‘I am going to work’ ”, he said.

Earlier, the Federal Controller of Housing in the State, Mr Pius Eneji, who received and conducted the Minister round the site, had told the him that the site was on 16 hectares of land adding that the contractors were currently working on five hectares of the land.

He also told the Minister that there were a total of 76 units of houses in the site made up of four units of one bedroom semi-detached bungalows, 48 units of two bedroom semi-detached bungalows and 15 units of three bedroom semi-detached bungalows.

The Controller, who said the work on the site was delayed for some time because of some exigencies, informed the Minister that a total of 19 contractors were on the site and working pointed out that but for the delay, some of the houses would have gone beyond the levels that they were at the moment.

He said the number of workers that were engaged on a daily basis varies according to the volume of work at hand adding that when the building got to the stage of casting lintel, more workers would be required as well as at other stages of work as the buildings progress.

According to him, there is also a nine-man team sent from Abuja to monitor the project and the team was based in the State adding that his office has also deployed seven staff of the Ministry to complement the efforts of the Abuja team in order to ensure delivery of quality buildings for the people.

It could be observed at both the Gombe and Taraba sites that the buildings were at various stages of completion with some at the foundation level while others were already progressing towards the lintel level. 

Earlier at the site of the road inspection which was the construction of the Jalingo-Kona-Lam-Karim-Lamido Road, inside the State Capital, Fashola thanked the Taraba State Government for taking responsibility for the road, the contractor handling the project, for the quality of work done and the Taraba State Commissioner for Works and Transport, Dr. Tafarki Eneme, for supervising the project to completion.

The Minister, who assured that the Federal Government would reimburse the State the money they spent on the road, however, pointed out that the road was now a Metropolitan Municipal road as it ran inside the centre of the city adding that it no longer qualified as a Federal Road.

According to the Minister, “This is now a Metropolitan Municipal road. It really does not qualify in the sense of a Federal Highway because our work as a Federal Government is to connect states together. But obviously when this road was designated as a Federal Highway most of these developments were not here; but you now see that it now has a pedestrian sidewalk and all of the amenities.

“So it has become a Municipal road and if you apply, I think the Federal Government will be inclined to hand it over to you for maintenance and management”, he said, assuring the State Government, however, that the handover or any such arrangement in the future was without prejudice to its right to be fully reimbursed whatever it had spent on the road.

On Saturday, the Minister also took time off on his way to Yobe State to inspect the National Housing Programme in Gombe State during which he reiterated that President Buhari was determined to make Housing and Infrastructure development generally the main plank of his administration’s Economic Recovery Plan.

The Federal Controller of Housing in the State, Tpl. Yalin Luka Barnabas who received and conducted the Minister round the housing project, told him that there were altogether 76 housing units made up of 1,2 and 3 bedroom semi-detached bungalows adding that there were altogether about 500 workers on daily basis.

The National Housing Programme is currently going on in 33 states of the country.

Oct

29

2016

Says it is an increasing urgent necessity to provide secure and sustainable way of life for the 21stCentury population

"We cannot afford to fail our Nations. We cannot afford to fail our peoples. We must not fail the future generation" - Fashola

The Federal Government has called for urgent global action on sustainable urban development as an imperative for a secured future for the growing world urban population at the Third United Nations Conference on Housing and Sustainable Urban Development (Habitat III) in Quito, Ecuador.

In a Country Statement read on behalf of President Muhammadu Buhari at the global event, the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, said such global action had become an increasingly urgent necessity if the 21st Century was to provide a secure and sustainable way of life for the growing global population.

Fashola, told the gathering of world leaders, "The economic and health imperative to plan for people-centered societies and sustainable cities is no longer a luxury, but an increasing urgent necessity if the 21stCentury is to provide a secure and sustainable way of life for the growing global population".

Acknowledging that it would not be easy to embark on such development given the rapid growing urban population, Fashola, who noted that there were inherent opportunities in the challenges of urbanization, added that with political will and with the New Urban Agenda as blueprint, the world could secure a sustainable future.

The Minister declared, "It will not be an easy task, neither will the turn-around come quickly, but we strongly believe that through strengthened political will and intelligent planning, we can improve the lives of millions with the New Urban Agenda as our blueprint and road-map to a sustainable future".

Calling for the strengthening of UN-Habitat "as the focal point for its effective implementation and review", Fashola added, "We must collectively agree on the common principles that will guide our response to the challenges facing human settlements and ensure that we embark on a path of sustainable urbanization over the next two decades, as aptly captured in the New Urban Agenda".

The Minister, who noted that the decisions arrived at the Ecuador Conference would have long-term consequences for cities, and their dwellers, as well as for the wider issues of human sustainability and the quality of life of future generations, added "Indeed, as the world waits in anticipation for the outcome of this landmark Conference, we cannot afford to fail our Nations. We cannot afford to fail our peoples. In fact, we must not fail the future generation".

On the benefits and opportunities derivable from functional and sustainable urban centres, Fashola, who said they were already evident, pointed out that as crucial engines of growth for the economy and concentrations of activity and places of connectivity, creativity and innovation, "cities offer a multiplier effect for the development of their surrounding areas".

"Urbanization can help to jump-start industrialization and manufacturing, which in turn can result in a host of other productive and economic development processes. The occurring rapid urbanization must therefore be exploited to unlock its economic potentials, and provide a solution for rapid transformation of our urban centres", the Minister said.

According to him, "This Habitat lll Conference presents this precise opportunity. It is for us a reminder, and a call to action on our obligations if our cities are to be properly positioned to play a meaningful role in achieving the targets of the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs), as well as the Paris Agreement on Climate Change, and other internationally agreed instruments aimed at creating productive lives for the growing number of urban dwellers".

"Certainly, we owe humanity a responsibility to significantly step-up political commitments globally if we are to ensure a better quality of life - one that is dignified and productive- not only for all our citizens today, but especially for the generations to come, for whom we are merely holding the earth in trust", he said.

Fashola said nations must take bold and decisive measures to implement the provisions of the New Urban Agenda at all levels, and mobilize commitments for institutional and attitudinal changes backed by innovative funding arrangements adding that in order to record success the Private Sector and development assistance must be tapped into.

This, he said, was necessary in order to provide capacity, finance and technology to address in a comprehensive manner the critical challenges of homelessness, growing poverty, social exclusion, urban sprawl, lack of basic infrastructure and services, environmental degradation, increased vulnerability to disasters and the food and energy crises.

The Minister said in order to make the programme both inclusive and comprehensive, special provision must also be made for those with disabilities, women and youth in the human settlements policies through programmes and projects targeted at achieving equitable and efficient growth.

Nigeria, on her part, the Minister said, has demonstrated renewed political will to install a well-functioning urban system through the pursuance of efficient, transparent and accountable governance, including progressive economic reforms that were directed at creating jobs, reducing poverty and promoting stability - which are all essential elements to sustained growth and development.

Noting that the country is currently one of the largest economies in Africa, blessed with significant natural and human resources, and with growing democratic institutions, the Minister added that as a mark of her commitment to the global urban development agenda, the country has endorsed the provisions of the New Urban Agenda with its strategic interventions to reverse identified urban lapses and ills.

"The Administration, under the leadership of President Muhammadu Buhari, has demonstrated renewed political will to install a well-functioning urban system through the pursuance of efficient, transparent and accountable governance, including progressive economic reforms that are directed at creating jobs, reducing poverty and promoting stability - which are all essential elements to sustained growth and development", the Minister said.

Pursuant to this commitment, he said, the country’s priority interventions have included among others, increased investments in affordable housing, modern road infrastructure, highways, bridges and robust, efficient transport networks adding, "The National Housing and Urban Development Policies have been reviewed, with the incorporation of new development strategies for dealing with the pertinent issues of housing finance, climate change, resettlement, participatory governance, and better land management and administration".

Fashola said in order to remove the inhibitions and obstacles to the supply of affordable housing units and to bridge the huge housing gap, Nigeria recently embarked on developing a sustainable National Housing Programme, that would form the bedrock for aggressively reducing the housing deficit in the country.

According to the Minister, critical features of the programme include; "Responsiveness to the needs of the end users based on surveys, affordability analysis and income differences; Responsiveness to cultural and climatic diversity; Responsiveness to local economic needs and focus on SMEs and cottage industries as drivers of building inputs like doors, windows, plumbing and electrical fittings; and Piloting and validating the concept by starting small with a N35 billion ($115million) to prove the concept".

Noting that the country has over the past six years contended with a violent insurgency in its North-East region, resulting in the dislocation of many communities,  and extensive damage to public infrastructure and basic services, Fashola said,  "Government’s strategic response has included a comprehensive humanitarian response actively supported by the United Nations System and International Non-Governmental Organizations, as well as our local Civil Society Organizations, to whom we remain deeply grateful".

The Minister said Government has evolved an elaborate redevelopment plan which, according to him, would soon be launched by President Buhari through the intervention of the Presidential Committee on the North-East Initiative (PCNEI) towards the rehabilitation and reconstruction of areas affected by the insurgency and relocation of the displaced populations in their communities.

He said despite the difficulties associated with the prevailing economic challenges which include the slowing GDP growth, high poverty rate and infrastructure gap, the Government has recently been exploiting new sources of growth in agriculture, industrialization, telecommunications and services.

"Our economic diversification policies, coupled with improved fiscal management are translating into significant decline in poverty levels, and bringing strong growth", Fashola said adding that the Nigerian Industrial Revolution Plan (NIRP) launched in 2012, provides a strategic and integrated Roadmap towards industrialization with an actionable plan across three sectors: agro-allied, solid minerals and oil and gas-related industries.

The Minister said stronger public-private partnerships for roads, agriculture, and power were also being developed to meet the overall national vision of promoting growth, creating jobs and generating wealth adding, "It is in furtherance of these, that Nigeria prepared its Habitat III National Report, and equally initiated and funded the development of a Common African Position for Habitat lll (CAPH3)under the auspices of the African Urban Agenda Project in full partnership with African Governments, UN-Habitat, the AU and UNECA, as a strategy to revitalize African cities.

He expressed delight that the essential elements of CAPH3 as endorsed by African Heads of States and Governments at the 27thOrdinary Assembly held in Kigali, Rwanda in May this year, were fully integrated in the New Urban Agenda, commending the support of his colleague African Ministers who worked diligently to bring it to fruition.

Congratulating President of the Bureau on his election, Fashola, who was also one of the three Vice Presidential nominees representing the Group of African States, expressed confidence that with the President’s wise guidance and support of members of the Bureau, the desired outcome at the Conference would be achieved

The Minister, who also conveyed President Buhari’s wishes of a successful Conference, expressed, on behalf of the Nigerian delegation, appreciation to the Government of Ecuador for the warm reception accorded them since the delegation’s arrival adding, "We appreciate the excellent work of the Preparatory Committee infinalizing the New Urban Agenda on schedule for adoption by this Session".