Dangiwa Charges Mortgage Bankers on Innovation, Says Nigeria's Housing Crisis Requires Creative Solutions   …Sues for affordable mortgage products to match current economic realities   Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has called on heads of mortgage banks to be creative in developing mortgage products for Nigerians. The Minister said Nigeria's current economic challenges call for innovative solutions that will make housing finance more easily accessible to Nigerians, and at affordable rates.   Speaking during the 20th edition of the Mortgage Banking CEOs Annual Retreat at the Transcorp Hilton Hotel in Abuja on Saturday 2nd December 2023, Arc. Dangiwa said CEOs of mortgage banks must find new ways to navigate the harsh macroeconomic environment and ensure that ordinary Nigerians- especially those in the low-and-medium-income bracket- can access the finance they need for homeownership.   "While the government works to fix this macro-economic challenge, I still believe that as CEOs of mortgage banks, you can find creative ways to develop innovative mortgage products that are responsive to Nigeria's current economic situation. This includes adopting rent to own mortgage options, flexible monthly mortgage loan repayments to make commercial loans more affordable.   "I note with concern that the Capital Market has not been maximally tapped to raise long term funds to refinance mortgage loans and to explore more creative ways to make mortgages more affordable even as we work to fix the larger macro-economic problems. As leaders, we must not only see provision of housing and home loans from a business and profit perspective, but also see expanding access to affordable mortgages as a moral imperative. So, we must do all we can even in these difficult times to ensure that not only the elites, but Nigerians within the low- and medium-income segments have access to affordable mortgages," he said.   While he acknowledged the presence of legacy challenges and barriers that hamper development in the sector, he charged the mortgage bankers to see themselves as leaders with a moral imperative to make housing more affordable and easily accessible to Nigerians.   The Minister noted that the theme for this year's retreat, "Advancing Sustainable and Affordable Housing in Nigeria: Navigating Macro-Economic, Legislative, and Policy Frontiers”, clearly captures the need of the hour. "The theme emphasizes the need for all players to find ways to navigate the macro, legal and policy bottlenecks. This speaks to the need for innovation. It speaks to the need for creativity. And it speaks to the need for effective leadership at every point in the value chain. This is because leaders are supposed to make progress despite challenges. Leaders are supposed to navigate the complexities of situations to make progress," he added.   Aware of the cost of funding and its impact on lending rate, which is a reflection of the broader economic reality, the Minister expressed confidence at the ability and willingness of President Bola Ahmed Tinubu to drive economic growth and create a more friendly environment for mortgage banking to thrive in Nigeria. He assured them that the jinx of macro-economic, legislative and policy issues that have held down the growth of effective housing delivery in the country will be broken under the leadership of President Bola Tinubu.   Speaking earlier, President of the Mortgage Banking Association of Nigeria (MBAN), Ebilate Mac-Yoroki noted that the retreat provided a platform for deliberation in order to harness policies and partnerships to create products that would enhance the extension of access to affordable housing finance to a larger segment of the Nigerian populace.   Also speaking at the event were Managing Director and Chief Executive of Nigeria Mortgage Refinance Company (NMRC), Kehinde Ogundimu, who observed that despite efforts by mortgage bankers in the past years, the industry has performed below expectation. "We must find ways to make affordable housing delivery work, starting with lowering the cost of lending. There's no where in the world that mortgage thrives with double-digit interest rates," he said.   Other attendees include Managing Director and Chief Executive of the Federal Mortgage Bank of Nigeria, Madu Hamman, the leadership of Family Homes Fund Limited, the leadership of the Real Estate Developers Association of Nigeria (REDAN), heads of mortgage banks and institutions, and representayives of regulatory bodies. ...

Minister of Housing to Encourage Increased Private Sector Investment in Housing, Breaks Ground for 480-Unit CityGate Homes Project in Abuja   …Urges private developers to build integrated, inclusive communities that are inclusive.   As part of efforts to encourage increased private sector participation towards solving Nigeria’s housing deficit, the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, on Thursday, 30 November 2023 performed the ground-breaking for a 480-housing unit project at the Kukwaba area of Abuja.   Speaking at the ceremony, the Minister said the Renewed Hope Agenda for Housing and Urban Development requires the participation of the private sector to bridge the housing deficit in the country, as the quantum of funding required to fix the housing shortage is beyond what government can provide.   The project by CityGate Homes covers phases II and III of the company’s Kukwaba housing project. It comprises 480 housing units of 6-bedroom semi-detached duplexes and 4-bedroom blocks of flats. Arc. Dangiwa described the ground-breaking event as a significant contribution to the Ministry’s ongoing efforts to address the housing crisis in the country.   “The initiative taken by Citygate Homes aligns perfectly with the government's vision for sustainable urban development. This project embodies the collaborative efforts between the public and private sectors, showcasing how partnerships can drive impactful change and contribute to the growth and development of our nation.   “In a rapidly growing city like Abuja, the demand for housing has surged, and it is our collective responsibility to respond to this need. I commend Citygate Homes for their dedication and investment in this endeavor. This housing project will not only provide shelter but will also create job opportunities, stimulate economic growth, and contribute significantly to the enhancement of the local community,” he said.   While the Minister assured that government will continue to provide the enabling environment for private-sector investment to thrive, especially with the uncommon determination displayed by President Bola Ahmed Tinubu to cater for the welfare of Nigerians, he urged them to embrace sustainability, inclusivity, and affordability in their housing and urban development drive.   “I commend Citygate Homes for their dedication and investment in this endeavor. This housing project will not only provide shelter but will also create job opportunities, stimulate economic growth, and contribute significantly to the enhancement of the local community. Furthermore, I want to emphasize the importance of sustainability and inclusivity in urban development. As we move forward, it is imperative that our housing projects incorporate eco-friendly designs, embrace technological advancements, and cater to the diverse needs of our society, including the low- and medium-income earners.   “In this regard, I will request that the Management of City Gate Homes earmark a certain percentage of the 480-homes as affordable housing with price tags that average Nigerians can afford to buy. As the Minister of Housing and Urban Development, I am an advocate of affordable housing with the focus on the average Nigerian worker, who are indeed, the majority,” he added.   He added that developers should borrow a leaf from the Ministry which has recently designed a housing plan to create integrated communities with housing types that reflect the diverse income segments of the country, using cross subsidies. “This way we aim to sell high-end homes at market rates and deploy the profits towards subsidizing the units for low-and-medium-income households. This enhances inclusivity,” he added.   He further urged the management of CityGate Homes to ensure timely execution of the 480 units, while upholding the highest building codes and standards, as well as operating transparently.   Speaking earlier, Managing Director and Chief Executive Officer of CityGate Homes, Michael Ejiogu noted that the company has nine projects in Abuja, and is committed to partnering the government in its quest to bridge the housing gap in Nigeria, assuring that the company will work to ensure affordability for medium-income earners in the country. ...

Ministry to Partner IOD Centre for Corporate Governance on Staff Training and Capacity Building   The Ministry of Housing and Urban Development is set to enter into collaboration with the Institute of Directors’ Centre for Corporate Governance to provide training and capacity building for its staff. The move is intended to optimise the processes of both the Ministry and its agencies and bolster their outlook by entrenching professionalism and enhancing their corporate governance.   This was revealed by the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa during a courtesy visit by the institute to the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa at his office in the Ministry’s headquarters in Abuja on Tuesday. The Minister underscored the important role the institute plays in enhancing professionalism in the workplace, promoting good governance practices, and boosting performance across sectors.   “We would leverage your capacities and resources to boost professionalism and effective leadership at all levels within the Ministry and Agencies towards powering our Action Plan for Housing and Urban Development. We hope that we can do this through periodic retreats, seminars, brainstorming sessions to empower our professionals with the right leadership techniques.   “In line with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR, we intend to build a Ministry of Housing and Urban Development that embraces the performance-driven culture of the private sector so that we can more effectively deliver homes and livable communities for Nigerians,” he said.   Dangiwa noted that the most important resource in any establishment is the human resource, and all personnel must be empowered with the requisite skillsets, mentality, and attitude to bring about positive change and transformation. He added that the IoD is a trusted resource that has been instrumental in boosting efficiency for optimal performance across organisations in Nigeria.   “The ideals that the Center promotes align seamlessly with the fundamental principles that underpin effective and responsible leadership. This includes Integrity, Meritocracy, Professionalism, Accountability and Probity, Customer Centricity and Teamwork. I recall that as the Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN) IoD was a strong partner and insightful resource during the series of Board/Management Retreats and Capacity Building/Training programs that we carried out.   “During these sessions we sought to build a new culture of high performance that delivers results even while confronting systemic and institutional bottlenecks. I believe that the robust contributions and input from IoD helped to bring clarity to our initiatives and increase staff capacity. All these resulted in the historic performance that I was able to lead the Management to record within our five years at the Bank. I am proud to say that what we achieved in five years at FMBN was far more than what previous managements had achieved in 25 years before we came on board,” he said.   On his part, leader of the delegation and Chairman, Board of Governors of the Institute, Urum Eke noted that the purpose of the visit was to offer useful tools to the Ministry and seek the Minister’s intervention in ensuring that agencies such as the FMBN and the Federal Housing Authority (FHA) take advantage of their expertise to position themselves for growth.   “It is clear to us that, with respect to housing and urban development, government does not have the wherewithal to do the massive work that is needed. What that means is that you’ll certainly be doing more of Public-Private Partnerships. However, no private sector partner will put his money in a parastatal, agency or company where there is no strong corporate governance; that is clear. Corporate governance is at the root of corporate performance, so we want to urge you to prevail on the agencies under the Ministry to take advantage of what we offer” he said. ...