Ministry of Housing Charges Federal Housing Agencies to Embrace Innovation and Bold Ideas to Deliver Renewed Hope Agenda for Housing   The Federal Ministry of Housing and Urban Development has charged federal housing agencies to focus on innovation and audacity in the collective quest to deliver the Renewed Hope Agenda for Housing. This was contained in an address by the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa during a multi-agency meeting at the ministry’s headquarters in Abuja on Wednesday 25th October 2023.   The meeting was attended by the leadership of the Federal Mortgage Bank of Nigeria (FMBN), the Nigeria Mortgage Refinance Company (NMRC), Family Homes Fund Limited (FHFL), and the Federal Housing Authority (FHA), and led by their Managing Directors and Chief Executive Officers. While noting that the meeting became necessary as part of efforts to ensure all federal agencies within the housing ecosystem work in synergy to achieve the vision of President Bola Ahmed Tinubu for Housing and Urban Development, the Minister urged them to be creative and ensure that their initiatives match the size of the housing challenge that the country faces.   “Under Mr. President’s Renewed Hope Agenda for Housing, the government expects all federal housing agencies to work with the clear understanding that at the core of what they do is providing housing Nigerians. Even though you may differ by name, the end result of your operations, no matter how technically different the institutional framework that guides you, is enabling access to decent and quality housing for all Nigerians across all income segments”, Dangiwa said.   He added that the agencies were strategically established to cater to all segments of the housing market, such as the social housing segment serviced by the FHFL; the affordable housing segment where the FMBN operates, and the mid to high-end segment of the market which is catered by the FHA.   “The Nigeria Mortgage Refinance Company (NMRC), on the other hand, has a significant role to play in developing the housing market and building a robust housing finance market through its mortgage refinancing operations that are designed to boost liquidity in the housing market. So, clearly, our problem is not the lack of institutions. We have them. But as we speak, we must all be humbled by how little we have collectively and individually done to address the housing problems of our country. If we consider the state of the housing market, the systemic challenges we still confront, the estimated size of the housing deficit, the prevalence of slum dwellings, the cost of land acquisition, interest on mortgage loans, among several other challenges, and how little progress we have made to tackling them, we can all agree that we have fallen short of expectations”, he noted.   Arc. Dangiwa reiterated the ambitious plans for housing as captured in the Renewed Hope Agenda and called for increased urgency in the delivery of housing tangibles in a bid to change the embarrassing narrative. “Our population is rapidly increasing, and the demand is rising. We must, therefore, resolve to act in a way that shows the urgency of the moment and the size of the problem we seek to solve. That is what Mr. President requires of us, and that is what we must do going forward”.   The Minister acknowledged the enormous systemic and macro-environment related challenges confronting the sector, including the Land Use Act, Establishment Acts of the FHA and the FMBN, the obsolete provisions of the NHF Act, the rising inflation rate, lack of government capital interventions, and other gaps in the value chain. “Despite these challenges, I believe that there still exist areas that we can leverage despite these challenges to make a greater impact. During my time at the FMBN, we made historic progress despite these challenges. That is what we should aim to do”, he added.   He further highlighted the Action Plan of the Ministry, which includes strengthening the institutional capacity of federal housing agencies, increasing the supply of decent and affordable housing stock, establishment of a National Social Housing Fund (NSHF), implementation of Land Reforms to ease land administration and access for private sector players, setting up Building Materials Manufacturing Hubs across the six geopolitical zones, development of New Cities that are integrated, inclusive, and demand-driven, as well as implementing Urban Renewal and Slum-Upgrading Programmes.   Stressing that President Bola Ahmed Tinubu is a game-changer who is willing to tackle Nigeria’s problems head-on, he called for the total commitment of the agencies to collaborate and participate with other housing stakeholders to see to the delivery of the Renewed Hope Agenda for Housing.   Managing Director and Chief Executive Officer of the NMRC, Kehinde Ogundimu expressed satisfaction with the policy direction and action plan of the ministry, noting that the implementation of the initiatives outlined by the Minister will trigger significant development in the housing sector. “On our part, we’re working to bring about a number of solutions, including the provision of data in partnership with bodies like the Central Bank of Nigeria, National Bureau of Statistics, Office of the Statistician-General of the Federation, and several others to assemble housing-related data based on the 117 indicators we ascertained through engagement with the Association of Affordable Housing.   “We are also working to dematerialize the entire titling process, find solutions to issues around construction such as technology, materials, cost, etc., and find ways around the scarcity of funds and financing”, he said.   In his response, Arc. Dangiwa asked the NMRC to make a presentation at the forthcoming National Council on Housing to educate the commissioners coming from various states on the need for states to adopt the model mortgage foreclosure law. “That way, they can take the message back to their governors. My desire is that we see to the full implementation of the law across the 36 states of the Federation during my time as Minister”, Dangiwa said.   Also commenting, Managing Director and Chief Executive Officer of Family Homes Fund Limited, Abdul Mutallab Muktar said that rising inflation and low incomes are major challenges to the delivery of affordable housing to Nigerians. “We’re finding creative ways to deliver more social housing, and I believe collaboration with other agencies like the NMRC, FMBN, and the FHA can create more avenues for social housing delivery to Nigerians. Data is important for this to happen and so is improved technologies. We’re working with the NMRC and other bodies on those areas as well”, he noted.   Other heads of agencies at the meeting were the Managing Director and Chief Executive Officer of the FHA, Sen. Gbenga Ashafa, MD/CEO of the FMBN represented by the Executive Director, Business Development and Portfolio Management, Mr. Kingsley Chukwuma, and the Managing Director of FHA Mortgage Bank, Mr. Hayatuddeen Auwal. While they pledged to deepen collaboration for better implementation of the Renewed Hope Agenda for Housing, the FHA called on the NMRC to accept other recognized documentation asides the Certificate of Occupancy towards refinancing loans issued by the FHA Mortgage Bank. ...

Ministry of Housing and Urban Development, IFC Agree to Partner on Reforms and Affordable Housing Delivery in Nigeria •    Sets up Technical Committee to Develop Framework for Comprehensive Partnership Agreement   The Ministry of Housing and Urban Development and the International Finance Corporation (IFC) have agreed to deepen collaboration towards the successful implementation of the Renewed Hope Action Plan for Housing and Urban Development in Nigeria. The Ministry’s Plan comprises housing reforms and initiatives which aim to deliver decent, affordable, and quality housing to Nigerians across all income segments.   This was revealed during a courtesy visit by a delegation from the IFC, led by Dr. Dahlia Khalifa - Regional Director, Central Africa and Anglophone West Africa, to the Minister at the ministry’s headquarters in Abuja on Tuesday 24th October 2023,   Represented by the Minister of State, Alhaji Abdullahi Tijjani Gwarzo, Arc. Ahmed Musa Dangiwa underscored the important work of the IFC in providing funding for developmental projects across Africa but noted that Nigeria was yet to maximise its partnership with the body, especially in the area of housing and urban development.   “I am aware that the ministry has had several interactions and engagements with the IFC in the past. However, it seems that we have not maximized our partnership with the IFC to empower private developers and the ministry to deliver at significant scale decent and affordable housing to Nigerians. Upon reviewing your 2023 Annual Report, I noticed that the IFC has committed over $128.3 billion in loans, grants, investments, and guarantees to partner countries and private businesses. In Sub-Saharan Africa, the report indicates that the IFC committed over $38.6 billion. What remains unclear to me is the specific amount of this investment that flowed into Nigeria, both for the country and private businesses” Dangiwa said. He noted that the focus and priorities of the new government require an enhanced and expanded partnership with the IFC. “We are determined to realize the bold vision of His Excellency, President Bola Ahmed Tinubu’s Renewed Hope Agenda for housing and urban development. As the drivers of His Excellency’s vision at the Ministry, we are intent on implementing a Comprehensive Framework for the Reform of the Housing and Urban Sector in the country”, he noted. Speaking further, the Minister reeled out the action plan of the ministry to include strengthening the institutional capacity of agencies under its supervision including the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA), increasing the supply of decent and affordable housing, establishing a National Social Housing Fund (NSHF), and implementing land reforms to enhance easy and cost-effective access to land. Others include establishing Building Materials Manufacturing Hubs across the country, implementing a Nationwide Urban Renewal and Slum Upgrading programme, as well as the development of New Cities that are integrated, inclusive using a demand driven strategy that will ensure prompt offtake of units built. “At the end of this meeting, we would like the IFC and our team to work out a Structured Actionable framework that would see the Ministry and IFC sign a Comprehensive Partnership Agreement on Housing and Urban Development covering all areas of IFC's interventions related to housing and urban development. We would expect this agreement to state what the IFC can do to assist us in achieving our housing and urban development plans, as well as the Ministry's responsibilities”, he added. Senior Country Manager of the IFC, Kalim Shah noted that housing is a major focus of the IFC across Africa where they service both the supply and demand sides of the industry. He said the purpose of the visit was to understand what the ministry is doing and see how the group can partner and support their efforts to enhance the delivery of affordable housing to Nigerians. “We see some honest desire on the part of the new government to provide affordable housing to the people, and we’ve come as partners to see how we can support what you’re doing. As an arm of the World Bank, our focus is primarily on private sector investment, so we’re looking for areas where we can work with the ministry in line with your vision for decent and affordable housing solutions to Nigerians”, he said. Also speaking, Senior Investment Officer, Public-Private Partnership of IFC, Alexander Leigh, said the corporation will be looking to engage more with the ministry in a bid to identify the specific needs that they have, so that they can provide solutions that are tailored to such needs. He added that the IFC considers factors like access to land and its administration, construction costs, the situation of beneficiaries to occupy the houses, and affordability in its dealings with countries, expressing optimism in the ministry’s efforts to address such issues. The minister reiterated the ministry’s commitment to creating an enabling environment for the private sector to thrive. “Particularly, the Ministry, like the IFC, views the private sector as a key partner in our efforts to increase access to affordable housing for Nigerians. A key part of our strategy is to create an enabling environment for increased private-sector investment in housing and urban development. Therefore, we seek a partnership with the IFC that enables more of our private developers to access funding through IFC mechanisms. While we work towards an agreement, in the interim, we propose that our teams collaborate to develop modalities for a Ministry-sponsored Workshop. This workshop will facilitate a meeting between the IFC and our private developers to explain the procedures for accessing finance to drive their projects. In this new era, we want more Nigerian developers to access funding using the mechanism of the IFC,” he said. He further assured the corporation of the ministry’s commitment to transparency and accountability in their dealings. “Our sole goal is to deliver on Mr. President’s objective of providing decent and quality accommodation to all Nigerians, especially the 80 percent falling within the medium and low segments. We aim to build livable communities and leverage the housing sector to lift 100 million Nigerians out of poverty”, he said. ...

Minister of Housing Unveils Plan to Build Renewed Hope Cities Nationwide • Phase 1 to Create 240,000 Jobs   Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has unveiled plans to build Renewed Hope Cities Nationwide as part of government efforts to promote integrated and functional communities in Nigeria.   The Renewed Hope Cities will have inclusivity at their core. Phase 1 of the project aims to deliver 34,500 housing units in a mix of 1, 2, and 3-bedroom affordable bungalows in Nigeria’s thirty (30) states; multi-level flats to cater to low-medium income earners and terrace and detached bungalows and duplexes for the high-income earners in select state capitals including Lagos, Kano, Borno, Nasarawa, Port Harcourt, Enugu, and the Federal Capital Territory (FCT).   Arc. Dangiwa revealed this when he received the Executive Governor of Taraba State, His Excellency, Dr. Agbu Kefas, at the Ministry’s Headquarters in Abuja on Thursday, October 19, 2023.   Speaking on the plans, the Minister espoused a multi-agency approach and private sector-led approach to delivering the project: “Overall, we aim to deliver under the phase 1 of this project, a total of 34,500 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.”   Additionally, he said that to ensure affordability and quick offtake of the houses by Nigerians, the Ministry has outlined the following mix of ownership options for potential beneficiaries. This includes leveraging the Federal Mortgage Bank of Nigeria (FMBN) to enable beneficiaries to access single mortgage loans payable over 30 years using the FMBN NHF Mortgage loan window, Primary Mortgage Banks, and the mechanism of the Nigeria Mortgage Refinance Company (NMRC) to enable beneficiaries who desire homes that are beyond the range offered by FMBN to access home loans at commercial rates.   “We plan to partner the private sector developers to sell the high-end buildings at commercial rates so we can apply the profits towards reducing the cost of the units targeting low-income earners” he added.   The Minister also said off-takers will also be encouraged to own the homes using the FMBN Rent-to-Own housing product which allows contributors to the National Housing Fund (NHF) Scheme to move into a home without equity payment and pay towards ownership over a maximum of 30 years depending on their age.   “To increase affordability, we are also exploring Public Rental where Nigerians who cannot afford to own their homes can rent housing units and pay on a monthly basis. They will also have an option to own the houses when their incomes improve,” he added.   “With the above affordability mix, Nigerians within the low- and medium-income brackets will have a wide range of convenient homeownership options to choose from to own their homes,” he said.   To deliver this, the Minister said the Ministry will need the support of State Governors in accessing free land as their contribution to the government’s plans to deliver affordable housing to all segments of the population.   “In our plan to deliver the Renewed Hope Agenda for Housing, one major area where we seek your support and collaboration is the provision of land. With this project alone, we aim to create over 240,000 jobs at 7 per housing unit. This is in line with Mr. President's goal to create jobs, lift 100 million Nigerians out of poverty, and grow the economy. To do this, we would need access to land at no cost from State Governments. Land is a major component of housing cost, so by giving us land, we would be ticking off a huge cost that will make it possible for the Ministry to deliver the houses at a price that Nigerians can afford,” he added.   He said that the Ministry has written letters to be sent to all State Governors seeking about 50 hectares of land for the Renewed Hope Cities. “I am sure that your Excellency will be kind and gracious enough to honor our request,” he added.   The Minister also noted other areas requiring the support of the Governor to include the reform of the Land Use Act, the passage and adoption of the foreclosure law, and setting up of mortgage.   In his response, the Executive Governor of Taraba State, Dr. Kefas, commended the Minister for the bold housing plans, saying that they fit into his state’s vision for inclusive and sustainable development.   “We are confident that the Renewed Hope Cities will not only create much-needed housing solutions but also generate significant employment opportunities for our people. Taraba State is ready to collaborate in every possible way to ensure the success of this project, bringing us one step closer to realizing the dream of adequate housing for all Nigerians. Once again, I commend the Ministry and assure you of our support in this laudable housing delivery plan,” Dr. Kefas added. ...