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Ministry targets over 1,000 units in new housing scheme


Pressed to increase the housing stock, the Federal Government has announced that over 1,000 units are at various levels of completion under the second phase of the National Housing Programme(NHP).

It also stated that about 1,000 units have already been completed across the country through the first phase of the programme. Minister of State, Works and Housing, Abubakar Aliyu made this known at the 14th Abuja international housing show entitled, “Housing Finance and Livable Cities: Innovation for 2020 and Beyond”, held virtually.

He said the government is mitigating the deficit in the sector by providing more houses under the NHP to ensure that Nigerians have access to affordable, conducive and hygienic homes.


Aliyu also revealed that, the Federal Mortgage Bank of Nigeria and the Federal Housing Authority are increasing the housing stock through other schemes designed to achieve the 200,000 housing-unit yearly targets.

According to him, the Ministry has continued to align its affordable housing programmes towards meeting the government’s agenda on housing development. Under the budget, the national and social housing scheme will gulp N17.5 billion and N30 billion respectively.

According to him, the deliverables include, collaboration with research institutions and the public sector to build quality houses for Nigerians; construction of houses through the establishment of modular facilities across the country; collaborating with the private sector to create a large number of well- paying jobs for Nigerian youths; and implement a strategy towards the realisation of government’s pledge to take 100 million Nigerians out of poverty in the next 10 years.

The multi-faceted approach to housing delivery, he noted, encompasses the rent-to-own, mortgage finance ownership, site and services schemes, urban renewal/slum upgrade programmes, public private partnership estate developments, among others.

The minister said the government is concerned about the several figures on Nigeria’s housing deficit, ranging from 17 to 22 million and has constituted a special survey committee to verify the actual figures for proper planning. He assured that the government is willing to partner with credible private sector developers towards actualising government’s aspirations on housing development in the country. 

“The Federal Government through the Economic Sustainability Plan has selected housing delivery as one of the focal programmes to create more job opportunities to deal with the challenges of poverty exacerbated by the COVID-19 pandemic on the global economy,” he said. He called on participants to key into the government’s policy direction towards providing a veritable platform capable of networking and mobilizing housing finance.”


On his part, the Managing Director/Chief Executive, Federal Mortgage Bank of Nigeria (FMBN), Ahmed Musa Dangiwa explained that the NHF role in housing development cannot be jettison as over 21,000 mortgages in addition to 66,000 housing micro-finance loans have been provided at single-digit interest rate and long-tenor to solve issues of accessibility and affordability faced by largest portion of working population which earn less than $2 per day.
Dangiwa said government is introducing new products such as the diaspora mortgage loan, student hostel construction financing and full automation of NHF processes.

He stated that NHF opportunities to finance housing in Nigeria are endless, stressing that with compliance by institutional investors, full coverage of the local working population and integration of the diaspora market, annual collection can total over N400 billion. He said, “Despite its challenges, the NHF scheme has contributed significantly to housing finance and mortgage finance in particular. It accounts for a significant portion of outstanding mortgages in the country. Its greatest strength is its concessionary lending terms, which address accessibility and affordability challenges, which majority of Nigerians are facing. It has also evolved over the past 28 years of operation to address various housing finance needs asides from mortgage financing, and is to continue being innovative going forward in response to the needs of its contributors.

The FMBN managing director said, funding structure can be made sustainable with full compliance by contributions from workers and institutional investors and it offers endless opportunities to finance housing in Nigeria, to complement capital market funding system.”

He further said parts of efforts at revitalising the NHF scheme for impactful affordable housing in Nigeria include, the presentation of a proposal to Central Bank of Nigeria for consideration by Bankers’ Committee on the need for risk-based investment in NHF, and strategic initiatives to expand coverage to over 30 million contributors within next five years.

“We are focused on integration of the informal sector through cooperative societies. There is on-going efforts to review the NHF and Federal Mortgage Bank of Nigeria (FMBN) Acts and FMBN is part of advocacy for States’ adoption of Model Mortgage and Foreclosure Law (MMFL) and creation of the Internal Records Office (IRO) to bridge delays in mortgage origination.”


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