REMARKS BY THE HONOURABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT ON THE GOLDEN JUBILEE CELEBRATION OF FEDERAL HOUSING AUTHORITY AT THE INTERNATIONAL CONFERENCE CENTRE ABUJA ON 23RD NOVEMBER 2023.
Protocols
1. I would like to start by congratulating the Federal Housing Authority (FHA), Nigeria’s oldest housing institution, on this occasion of its 50th anniversary celebration.
2. I also want to congratulate the Management and staff – retired and present – of FHA for keeping the fire of its mandate burning through these 50 years despite systemic, human-made and macroeconomic challenges.
3. While we mark 50 years it is important for us to confront the truth of its history to learn the lessons from there. It is only based on this basis that we can begin the process of building a new FHA that delivers on its mandate.
4. In 1973, the Federal Housing Authority was created with the mandate to provide housing to low- and medium-income earners nationwide. These functions were further expanded under the 2012 National Housing Policy to include the following key provisions.
• To develop and manage real estate on a commercial basis in all states of the Federation and the Federal Capital Territory (FCT).
• To provide sites and services for all income groups.
• To execute housing programmes in the public interest as may be approved by the Federal Government and
• To mobilize offshore funding for housing development.
5. Pursuant to the re-defined roles, the National Council on Privatization in May 2013, approved FHA’s commercialization. The aim was to reduce the magnitude and scope of financial support of the Federal Government and allow the Authority to adapt to changing business requirements. At this time FHA had only managed to deliver 37,000 houses in its 40 years of existence.
6. Now, ten years after commercialization, records show that FHA has only delivered a cumulative of just over 50,000 housing units. That shows an average of 1,000 houses per year in 50 years. This is clearly not acceptable, especially from Nigeria’s foremost housing agency that has so many institutional advantages that it can leverage to deliver more results. This includes free access to land from the federal government in all layouts and new districts, relationships with other government entities like the Federal Capital Development Authority (FCDA) and strategic positioning to engage in Public Private Partnerships (PPPs) with reputable developers given its name recognition as a government agency.
Last month, during the Shelter Afrique EGM in Algeria, I discovered from my engagements with the Algerian Government that an Agency like the FHA delivers between 400,000 and 1m houses annually. In fact, in a particular year, that Agency delivered 1,060,000 houses. This underscores the need for FHA to aggressively upscale its delivery capacity.
7. I am also pained to say that analysis of all the PPPs that the FHA has entered into over the years have delivered little or no value to the country. This is also not acceptable. FHA needs to wake up to its responsibilities.
8. We have a serious housing crisis and current efforts; speed of delivery and strategies must be increased to meet the challenge. FHA must see this 50 years anniversary as a moment of soul-searching and resolve that the next 50 years will tell a different story. Like they say, we cannot change the past, but we can shape the future by doing things differently.
9. What we need at FHA is leadership that is visionary and can innovate, think outside the box, while tackling problems. We can see this from the progressive, agenda setting and performance-driven leadership style of His Excellency, President Bola Ahmed Tinubu, GCFR.
10. His leadership is gradually re-setting Nigeria on the path of sustainable growth and economic prosperity. It is this sort of leadership that Mr. President demands for the housing and urban development sector, which we must all collectively provide.
11. So, today, we are celebrating the Renewed Hope for the Federal Housing Authority. The fact that FHA is marking its 50th anniversary just six months into the administration of His Excellency, President Bola Ahmed Tinubu, is not only a pleasant coincidence, but a golden opportunity for us to begin the process of writing a different, more progressive story for the next 50-years of the institution.
12. Under the Renewed Hope Vision of His Excellency, President Bola Ahmed Tinubu, GCFR, we want to see a reformed, more efficient, and capable Federal Housing Authority (FHA) that would have the financial strength to deliver more on its mandate.
13. FHA is the one agency that has the license to play in all income segments, so the ministry expects the FHA to make judicious use of this advantage in the broad strategy of the government to deliver housing to Nigerians. I want to see the FHA go to the capital market, issue bonds, and raise funding to deliver mass housing projects across the country, market them, payback the loans, and declare profit. In the next fifty years, we expect that FHA would be celebrating millions of homes built and successfully delivered to Nigerians.
14. As the Minister of Housing and Urban Development, I am ready to provide the necessary leadership that is required to move FHA forward. This includes granting the necessary Ministerial support for FHA to access funding from international development finance institutions such as Shelter Afrique.
15. We can do this because we have a President who is a gamechanger. He has the political will to break all systemic barriers that have prevented government agencies such as FHA from delivering on their mandates and playing their role in moving Nigeria forward.
16. As part of our plans to ensure that housing agencies under the supervision of the Ministry are optimized to deliver on our target of providing affordable homes to Nigerians, we have composed a Housing Reform Team of experts, stakeholders, agency representatives, professional bodies, and academia to develop a robust framework for reform of the housing sector including thorough review of relevant laws and facilitation of necessary legislative amendments. This includes the following:
a. The Land Use Act, 1978
b. National Housing Fund (NHF) Act,1992
c. Federal Mortgage Bank of Nigeria (FMBN) Establishment Act, 1993
d. Federal Housing Authority (FHA) Act,1973
e. PenCom Act to allow for increased investment in housing.
f. Driving Nationwide adoption and passage of the foreclosure law in states.
17. We have secured the Presidential consent and will be inaugurating the Team within the next two weeks with a mandate to deliver their reports within two months. It is important to say that we are not trying to re-invent the wheel but to build on the existing body of industry knowledge. What we have lacked over the years is the POLITICAL WILL to implement them, which we now have in President Bola Ahmed Tinubu.
18. I believe that the reforms and legislative amendments that the Housing Reform Team will execute in collaboration with stakeholders and the National Assembly will be the most comprehensive set ever done in the history of housing and urban development in Nigeria. This will give birth to a new FHA and other housing agencies that are fully empowered with the legal and financial capacity to deliver on their mandates.
19. We are also working to implement the much-needed reforms that will ensure quick, easy, and efficient access to land. We have composed and secured Presidential consent to inaugurate a land reforms committee comprising state governments, traditional rulers, relevant agencies, professional bodies, academia, stakeholders to ensure buy-in and inclusivity.
20. With their recommendations we will draft an Executive Bill and proceed to the National Assembly for the amendment of the obsolete Land Use Act 1978 that has hindered the development of the housing sector.
21. In line with our policy of building on existing knowledge so we can move at a faster pace to deliver value, we invited and met with the Presidential Technical Committee on Land Reforms. And I must say that it was a wise decision to do so. This is because we now have access to the comprehensive work they have done over the past 14 years on Land Reforms in our country. Immediately after the meeting we set up an Internal Ministerial Committee to review and recommend for inclusion in our land reforms strategy relevant parts of their recommendations. Part of this will be the establishment of the National Land Commission to spell out the guidelines and regulations for operationalizing the Land Use Act, 1978.
22. On policy implementation we have called up and met with the FMDQs on the National Housing Strategy (NHS) that was launched in May this year. We have reviewed the document thoroughly towards identifying initiatives for inclusion in our plans for implementation.
23. In line with the Renewed Hope plan to ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation, we are also creating the framework for the establishment of a National Social Housing Fund (NSHF). This is because we believe that access to decent shelter is a not only a necessity but a human right and that all Nigerians across all income segments deserve a decent home to live and grow.
24. We have also prioritized building materials manufacturing in the country. This will ensure economic growth, create jobs, and reduce dependency on imports. To ensure success, we have composed a Building Materials Manufacturing Task Team comprising of experts and representatives from relevant government agencies, academia, professional bodies, and industry associations. They will conduct a thorough assessment of the current state of the building materials manufacturing sector and produce a strategic plan for reforming the sector for implementation. We plan to inaugurate the Team very soon. Our plan is to build six (6) building materials manufacturing hubs, one in each of the six (6) regions of the country.
25. To increase the stock of housing supply, we have also composed and will inaugurate a Multi-Agency Project Delivery Team. The Team will ensure that all housing agencies including FHA work together towards optimizing their strengths to increase the stock of quality houses to Nigerians. The Team comprises highly qualified and experienced professionals with expertise in housing development, urban planning, infrastructure, finance, and project management.
26. FHA will also play a key role in our New City Development Plan. Here the Ministry plans to lead partnerships with the private sector, local and international investors, towards redefining the concept of cities in Nigeria and decongesting city centers and state capitals in line with the Renewed Hope Agenda of Mr. President.
27. The first phase of the New City Development Plan aims to deliver Renewed Hope Cities ranging from 1,000 housing units per site in one location in each of the six geo-political zones of the country and FCT namely: Abuja, Lagos, Kano, Borno, Nasarawa, Rivers, and Enugu States, while the remaining thirty (30) States will have Renewed Hope Estates each with a minimum of 500 housing units.
28. The Renewed Hope Cities will have inclusivity at their core: They will include Multi-Level Flats to cater to low-medium income earners; Terrace and Detached Bungalows and Duplexes for the high-income earners. The Renewed Hope Estates will have 1,2- and 3-bedroom affordable bungalows.
29. Overall, we aim to deliver under this phase 1, a total of 40,000 homes from a mix of sponsors comprising the Federal Ministry of Housing and Urban Development’s budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and through Public Private Partnerships with reputable developers in the delivery of the new cities.
30. Ownership Options include Mortgage Loans, Rent-to-Own and Outright Purchase.
31. At 25 jobs per unit, the first phase of the project will create direct and indirect 1,000,000 jobs helping to achieve the target to lift 1million Nigerians out of poverty.
32. Under Phase 1 of the Slum Upgrading Programme, the Ministry plans a total of 26 sites nationwide. This includes four (4) sites in each of the six regions of the country totaling twenty-four (24) and two (2) in the FCT. The key services to be provided at the identified sites will include water supply, solar streetlights, rehabilitation of access roads, construction of drainages and waste management and sanitation services amongst others.
33. The Federal Housing Authority has a major role to play in our ‘Renewed Hope Agenda’ for housing and urban development. So, getting FHA to fulfill its mandate is a priority to us. We will encourage the Authority to operate optimally. We will drive the process for the release of the Take- off grant proposed for the Authority prior to its partial commercialization.
34. As an agency that is not on the budget, we will strengthen FHA to be able to source private sector funds -locally and internationally – to drive its operations. What I want the FHA to know is that being partially commercialized and not being on the budget is a good thing. It gives you the latitude to become more creative and innovative in tapping financing for your activities.
35. On this note, once again, I thank you all for joining us to mark the 50th Anniversary of Nigeria’s oldest housing institution and to celebrate the Renewed Hope for a more impactful and progressive FHA. It’s the Renewed Hope Era and all federal agencies must be primed to fire on all cylinders towards meeting Nigeria’s housing needs.
36. Thank you all.
