“Perform or Leave”, Minister Charges New Management of Housing Agencies …..Says Current Housing Crisis Leaves no Room for Underperformance The Hon. Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has charged newly appointed Executive Management Teams of federal housing agencies to deliver on reform targets saying that “anyone who fails to perform will be asked to leave”.   The Hon. Minister gave this charge during his first meeting with the Management Teams of Nigeria’s premier housing agencies - the Federal Mortgage Bank of Nigeria (FMBN) and Federal Housing Authority (FHA), at the Ministry’s headquarters in Abuja on Thursday 22nd February 2024.   Recall that President Bola Ahmed Tinubu had on Thursday 15th February 2024 approved the appointment of new management teams for the FMBN and FHA, with Mr. Shehu Usman Osidi emerging as the new Managing Director and Chief Executive of the FMBN and Hon. Oyetunde Oladimeji Ojo as Managing Director and Chief Executive of the FHA.   Arc. Dangiwa noted that the new leadership should see their appointment by the President as a call to impactful service, and not an opportunity to make merry and self-enrich. He reiterated the President’s resolve to periodically assess and replace appointees that fail to meet expectations, reminding them of their responsibility to Nigerians.   “As Minister of Housing and Urban Development, I have my deliverables from Mr. President. As leaders of agencies under the supervision of my Ministry, you are to fashion out ways to deliver on them. If you work hard and deliver, you will stay. If you don’t work hard and fail to deliver, you will leave before your term. I believe that is a strong message that Mr. President has already passed across to all appointees. Don’t look at the 5-year term, look at your ability to meet the targets for every review session. Because when it comes to review and KPIs, I won't be looking at your faces.   “What we want is action, progress, improved customer service delivery and more Nigerians owning homes. Both the FMBN and FHA Management Teams must see this as a new beginning for real progress. This must reflect in the quantum of houses delivered and fully occupied by Nigerians.   The Minister added that despite the harsh economic realities and the rising cost of housing construction, the new leadership must transform and innovate in order to drive Mr President’s Renewed Hope vision for housing and urban development.   Speaking on the expectations of the FMBN, he said the bank should work towards delivering a minimum of 5,000 new homes annually, disburse mortgage loans to at least 20,000 Nigerians annually, increase the National Housing Fund (NHF) collection by expanding the subscription net, address the backlog of audited accounts and clean up its books for better financing opportunities, and quickly roll out the Diaspora Mortgage Scheme for increased housing delivery, among others.   “For the FHA, I expect to see more flexibility and innovation in its operations rather than the usual, conventional, docile way of doing things. The ministry expects the FHA to make judicious use of its license to operate across all income segments in the broad strategy of the government to deliver housing to Nigerians, as well as get more funding from the capital market by issuing bonds to deliver mass housing projects across the country, market them, pay back the loans, and declare profit.   “We also expect to see the FHA delivering a minimum of 5,000 houses annually to Nigerians. The agency should also take advantage of its status as an agency without budgetary allocations to be inventive, partner with credible investors, and local and international financing partners to deliver more houses to Nigerians,” he said.   Dangiwa added that the Ministry will keep track of the progress in both agencies on a year-to-year basis, noting that their KPIs are the only things that will matter when the time comes to assess them. “We have a responsibility to Nigerians, and we cannot afford to fail. On our part, we will continue to work to strengthen your capacities and break down the limitations that hamper your performance.   “Let me, once again, reiterate the seriousness of His Excellency, President Bola Ahmed Tinubu, GCFR, to ensure the full implementation of the Renewed Hope Agenda for Housing and Urban Development. We can already see that the Renewed Hope Cities and Estates Programme is one of the signpost projects of his administration. He will not tolerate failure or mediocrity, and neither will I,” he said.   Other members of the Executive Management Team of the FMBN are Mr. Ibidapo Odojukan, Executive Director, Finance & Corporate Services; Mr. Muhammad Sani Audu, Executive Director, Loans & Mortgage Services; and Mrs. Executive Director, Business Development & Portfolios. In the FHA Management are Mr. Mathias Terwase Byuan, Executive Director, Housing Finance & Accounts; Mr. Umar Dankane Abdullahi, Executive Director, Business Development; and Engr. Oluremi Omowaiye, Executive Director, Project Implementation. ...

FG Expresses Strong Displeasure at Cement Manufacturers, Says They Can Do More Despite Economic Headwinds .....We Are Government, we have Options, says Minister of State .....Sets up a Technical Committee to Review & Establish Validity of Cement Manufacturers’ Concern .....To Present Valid Concerns to FEC for Consideration The Federal Government has said cement manufacturers are not doing enough to stem the rising cost of cement in the country, stating that it will not accept a situation where the price of essential building materials like cement continue to rise uncontrollably. This was relayed by the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa when he summoned cement manufacturers to a meeting at the Ministry headquarters in Abuja, on Tuesday 20th February 2024.   Arc. Dangiwa expressed displeasure over the steady, recurring, and alarming increase in the prices of cement and other building materials and accused the manufacturers of hiding behind unstable FOREX to inflict hardship on Nigerians. He described the situation as unacceptable and inimical to the country's growth, saying that the government cannot accept such illicit price hikes.   Dangiwa noted that the incessant hike has overtaken the country in the past few months, which has seen the price rise by over 100%, from N5,500 a few months ago to more than N10,000 today.   “This represents a 100 percent rise. And it is not only cement; we have also seen near-record high escalations in the prices of other building materials such as iron rods and other fittings. I recall that late last year, BUA Cement announced a commendable reduction in the price of cement from N5,500 to N3,500 per bag. I applauded the gesture, and several other stakeholders did too. But today, the reality is that of escalating cement prices. This is a crisis for housing delivery.   "An increase in essential building materials means an increase in the prices of houses. An increase in the cost of building houses means more and more Nigerians can no longer afford to own houses and provide decent shelter for themselves and their loved ones”, he noted.   Arc. Dangiwa charged the manufacturers to be honest in their dealings and desist from making life difficult for Nigerians. "We know that some of the key components of producing building materials, especially cement, are locally sourced, so the recurring disproportionate increase in the price of cement is unacceptable and unreasonable. Key input materials such as limestone, clay, silica sand, and gypsum within our borders should not be dollar-rated.   "You cannot continue to give excuses and blame it on the dollar all the time. The worst part is that other building materials manufacturers take a cue from cement manufacturers, and once they see that you increase your price, they do the same. Recently, this is happening almost every week, and it has to stop”, he said.   He noted that rather than make Nigerians bear the brunt in their quest to make a profit in the face of slight macroeconomic headwinds, cement manufacturers need to be innovative and come up with a roadmap as part of the committee that has been set up to tackle the challenges for the benefit of Nigerians.   Speaking further, he said the unfortunate situation poses a threat to housing delivery which is the main focus of the Ministry, and a priority of the Bola Ahmed Tinubu administration. “For example, if we were planning to build a one-bedroom apartment for about N8 million, it will now cost twice that much, about N16 million to build. If a Nigerian could afford to own a home of N8 million, it would now be impossible to do so. We are also aware of several persons who have had to suspend construction work because of this development”, he said.   He added that the Ministry is alarmed by the current situation, especially considering the projects the Ministry has embarked on to provide affordable and social housing delivery to low- and medium-income earners and vulnerable members of society. “We have already awarded contracts for Renewed Hope Cities and Estates in 15 states of the Federation. There is also the PULAKU Initiative through which we intend to build at least 1,000 houses in seven (7) states affected by banditry. We are worried that the rising cost of cement and other building materials in the country will affect these plans”, he said.   He further directed the Permanent Secretary, Dr. Marcus Ogunbiyi, to get the committee working quickly and come up with recommendations based on the issues raised by manufacturers, so that they can be taken to the Federal Executive Council.   Also speaking, Minister of State for Housing and Urban Development, Abdullahi Tijjani Gwarzo, called on the manufacturers to make some sacrifices in their operations, understanding that they have a corporate social responsibility to stand by Nigeria in difficult times. “This is not the time to focus too much on profit, but on our collective responsibility to the people of Nigeria.   “Cement manufacturers must realize that, as government, we have options, but we would not want it to get to the point where we have to use those options because it may not be good for local producers. That is not to say we do not have options. As the Minister said, the Federal Government placed a ban on cement importation in a bid to empower you to flourish, but that cannot happen at the detriment of Nigerians", he said.   In the meeting were the Group Chief Commercial Officer for Dangote Industries Limited, Rabiu Umar; Commercial Director for Lafarge Cement PLC, Gbenga Onimowo; and Secretary of the Cement Manufacturers Association of Nigeria (CMAN), James Salako, among other top officials of the represented cement companies. ...

Housing Minister to Meet Cement, Other Building Materials Manufacturers to Tackle Rising Prices   In a bid to stem the incessant rising cost of cement and other building materials and enhance the delivery of affordable housing in Nigeria, Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has revealed plans to meet with manufacturers of Cement and other building materials in the country. The move is aimed at better understanding the challenges in the sector, sharpening measures to mitigate the rising cost of building materials in the country and finding sustainable ways to address them.   The Minister said this during a courtesy call by a delegation of the Federal Mortgage Bank of Nigeria (FMBN), Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Nigeria Employers Consultative Association (NECA) to discuss the progress of the collaboration between the FMBN and the labour centres, especially as it concerns the National Affordable Housing Delivery Programme for Nigerian Workers (NAHDEP), which he initiated during his time as Managing Director of the FMBN.   He queried the recurring disproportionate increase in the price of cement in particular, especially considering that cement producers in the country source virtually all their raw materials locally. “It is disheartening to see how much Nigerians have to pay for essential building commodities like cement, with the prices rising almost on a daily basis. I don’t understand the reason for this increase, and it is not acceptable.   “I am going to be meeting with these manufacturers soon, so that they can explain to Nigerians their reasons for such incessant hikes. I know that the cement producers source their raw materials in Nigeria, the limestone, clay, silica sand, gypsum, iron ore, and the rest. These minerals abound in Nigeria and these manufacturers get them here, so there is no justification to try and blame it all on the rise of dollar”, he said.   Arc. Dangiwa assured the delegation of the commitment of the President Bola Ahmed Tinubu administration to providing decent and affordable shelter and livable communities to low- and medium-income earners, as well as the vulnerable in society. He said this also involves creating a conducive environment for private sector to thrive, including through ensuring building materials are affordable and accessible.   Recall that the Ministry in January inaugurated the Building Materials Reform Task Team as part of efforts to develop the building materials industry through the creation of Building Materials Manufacturing Hubs in each of the six (6) geopolitical zones of the country. The Minister said while the hubs are yet to come on stream, there is a need to continue to interface with players in the industry such as building materials manufacturers in a bid to promote affordability.   Speaking on the partnership between the FMBN and Organized Labour, Dangiwa emphasized the need for the FMBN to reform and innovate its operations, calling on the NLC, TUC, and NECA to see the Bank and the National Housing Fund (NHF) Scheme as their own that they must encourage and support the institution to do better towards delivering decent shelter to their members.   “The truth is that despite FMBN’s inadequacies, which we are working to address, there is no other home ownership platform that can provide housing to the segment of Nigerians whom you represent at the terms and conditions that the FMBN provides.   “From the single-digit interest rate on loans ranging from 6 – 7 percent versus the commercial rates of 18-24 percent in commercial housing loans, to long tenors of 30-years versus 5-to-10-year commercial tenors, zero to maximum 10 percent equity versus 30 percent equity for commercial loans, FMBN is an institution that requires the support of all stakeholders so that it works. There is absolutely no alternative”, he said.   He noted that a key priority of President Tinubu is the reform of all federal housing agencies under the supervision of the ministry, clearly demonstrated by the inauguration of the Housing Institutions Reform Task Team under the Chairmanship of Mr. Adedeji Adesemoye with representatives from other stakeholders. The team, he said, will review and facilitate necessary legislative amendments of relevant housing industry laws, including those of the NHF Act, 1992 and the FMBN Establishment Act, 1993. ...