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Stakeholder Engagement Meeting

*  Facilitated by the FMHUD on the Report on Preparation of Strategic Regional Development Plan for North Central Geo-political zone

*  Held at Shoprite Building, Wuse zone 5 Abuja, Thursday,  November 21st, 2024.

* The aim of the engagement is to facilitate balanced development within the region and reduce regional disparities

* This is part of the FMHUD under the leadership of the Hon Minister,  Arc. Ahmed Musa Dangiwa to actualize the Renewed Hope Urban Renewal and Development Agenda of President Bola Ahmed Tinubu,  GCFR

OPENING STATEMENT BY THE MINISTER OF STATE, FEDERAL MINISTRY OF HOUSING AND URBAN DEVELOPMENT, RT. HON YUSUF ABDULLAHI ATA AT THE STAKEHOLDER'S ENGAGEMENT ON THE DEVELOPMENT OF FISCAL INCENTIVES FOR MANUFACTURERS OF LOCAL BUILDING MATERIALS COMPONENTS IN NIGERIA, HELD AT THE RADISSON BLU HOTEL, G.R.A IKEJA, LAGOS ON 20^TH FEBRUARY, 2025

PROTOCOL

Honourable Minister,

Chairman Senate Committee on Lands, Housing & Urban Development,

Chairmen of the relevant House Committees,

Permanent Secretary,

Directors and Staff of the Ministry,

Speakers at this event,

Chairmen of the Four (4) Reform Task Teams,

Stakeholders from relevant MDAs and the Private Sector,

Officials of the Lagos State Government,

Members of the Press,

Ladies & Gentlemen.

It is my honour and great previlege to give the opening statement at this very important session on the development of fiscal incentives for manufacturers of local building materials components in Nigeria. We are gathered here today to discuss how we can jointly work to enhance the production of local building materials, reduce construction costs, and, in the process, stimulate economic growth in our nation.

2.       As part of the Federal Ministry of Housing and Urban Development’s (FMHUD) commitment to Nigeria’s development agenda under the Presidential Priorities and Ministerial Deliverables for 2023-2027, we are focused on addressing key challenges in the housing and construction sectors. Our objectives include rapidly reforming our housing institutions, establishing a National Social Housing Fund, revising the Land Use Act, and ensuring the construction of at least 20,000 housing units annually.

3.       However, one of the key focus areas of this administration is establishing a private sector-led local building materials manufacturing cluster in each of Nigeria’s six geopolitical zones. This initiative will focus on the development of fiscal incentives to support private investors, particularly in the local production of building components.

4.       The construction and real estate sectors are vital drivers of Nigeria’s economic growth. They employ millions of people and contribute significantly to our GDP. But we face some daunting challenges in these sectors. The high cost and inconsistent supply of building materials remain critical obstacles. Import dependence on materials like cement, iron rods, tiles, glass, and roofing sheets inflates construction costs. Moreover, the production capabilities of our local manufacturers remain underdeveloped, adding to the cost burden.

5.       To meet the needs of our growing population and rapidly urbanizing communities, we must focus on increasing local production. We need to reduce reliance on imports, make building materials more affordable, and create jobs for our people.

6.       In light of these challenges, we are exploring the establishment of manufacturing hubs in each of Nigeria’s six geopolitical zones. These hubs will focus on producing key building materials, such as cement, steel, roofing materials, tiles, paints, and glass etc. By boosting local production, we aim to reduce construction costs, stimulate economic development, promote regional growth, and generate employment opportunities.

7.       The hubs will be strategically placed in key locations like Ogun, Delta, Abia, Kano, Gombe, and Kwara states, with each hub serving its respective region. These hubs will not only enhance production capabilities but will also offer significant opportunities for private sector investment, vocational training, and innovation.

8        The key objective is to establish a sustainable, decentralized network of building materials manufacturing hubs across Nigeria's six geopolitical zones aimed at improving the nation’s manufacturing competitiveness. The hubs will bring together the states in the region, industry partners, local businesses, local governments, economic development agencies, and educational institutions, to collaborate and grow the required regional manufacturing.  The development of a strong local manufacturing ecosystem will ensure the hubs are driven from within the geo-political zones, based on local knowledge and insight. The ecosystem will develop over time and position the hubs to be self-sustaining, going forward.

9.       The hubs will synergize with our vocational and tertiary institutions to develop a workforce with strong skills in science, technology, and engineering and provide a significant opportunity by bringing together industry and researchers in one place to potentially work on developmental projects together. The advantages associated with the hub include the offering of significant and transformational benefits for regional manufacturing businesses including:

1. a benchmarking service;
2. saving time for business and helping manufacturers focus more on developing their products;
3. assistance to help bring products to market;
4. showcasing regional manufacturers and maximization of regional cost advantages;
5. Workforce Development and Training for businesses and employees;
6. business mentoring and coaching;  
7. developing important career pathways to and from schools and universities;
8. growing SMEs to drive growth in regional areas and job creation;
9. bringing together business and research to improve regional manufacturing capabilities

10.     The co-location strategy is to amongst others, ensure that the value added through innovations in these hubs, spread rapidly across the six geo-political zones. The hubs will be under the purview of the Federal Ministry of Housing and Urban Development and a central oversight committee may be established and chaired by the Honorable Minister or his representative. The Committee will be responsible for the strategic direction of the hubs, amongst others. Membership may include representatives of state governments, universities, vocational institutions, unions, and industry players.

11.     The Role of Fiscal Incentives in Boosting Local Manufacturing: As we discuss the role of fiscal incentives in driving the success of these manufacturing hubs, we recognize that it is critical for the government to provide robust and targeted support. The following incentives are currently under consideration:

1. Tax Incentives: As a Ministry, we intend to push for tax holidays or exemptions for new and expanding building materials factories and we believe that, reduced corporate tax rates and investment tax credits will make it easier for manufacturers to invest in technology, machinery, and capacity building.
2. Subsidies and Grants: We are considering subsidies for the importation or local procurement of raw materials, as well as government grants for research and development initiatives aimed at improving efficiency and reducing production costs.
3. Access to Cheap Financing: In synergy with other government agencies, we will work with local banks and development finance institutions to provide low-interest loans, credit guarantee schemes, and financing to encourage manufacturers to expand their operations.
4. Infrastructure Development: The government will focus on improving energy supply, transportation, and logistics infrastructure. This includes ensuring reliable power supply and upgrading key transport networks to reduce the cost of raw material supply and distribution.
5. Local Content Policies: We are exploring policies to provide preference for locally produced materials in government construction projects, encouraging manufacturers to increase production to meet the growing demand.
6. Duty Waivers on Equipment Imports: We will also synergize with relevant MDAs to consider offering duty-free or reduced duties on essential manufacturing equipment and raw materials to help reduce initial capital expenditure for manufacturers.
7. Building Material Manufacture Hubs (Industrial Parks and Special Economic Zones (SEZs)): The Building Materials Manufacturing Hubs under reference are being contemplated as industrial parks, specifically designed for building materials manufacturers, where they can benefit from tax incentives, shared infrastructure, and improved access to raw materials.
8. Capacity Building and Skills Development: In addition to fiscal incentives, we understand the importance of skills development. Training programs and vocational schemes will be rolled out to ensure that we have a well-equipped and highly skilled workforce to support the growth of the manufacturing hubs. This collaboration with educational and technical institutions will ensure that local manufacturers benefit from continuous skills development, which will in turn help improve product quality and operational efficiency.
9. Export Incentives: To further encourage growth, we will also explore export incentives, such as export subsidies, tax exemptions on profits from exported goods, and assistance with navigating international markets. This will allow our local manufacturers to scale up production and tap into regional and global markets, boosting the competitiveness of Nigerian-made building materials.
10. Collaboration and Support for Research and Innovation: As a Ministry, we recognize the role of research, development, and innovation in driving long-term success. Through government support for R&D, we aim to encourage the development of new technologies that will improve the sustainability, cost-efficiency, and competitiveness of local manufacturers.

12.     Nigeria is already witnessing promising success stories in this sector. Companies like X Engineering Ltd and Green Build Nigeria have championed innovative solutions, producing high-quality cement alternatives and eco-friendly bricks using locally sourced materials. Through strategic partnerships and government support, these enterprises have demonstrated the viability and competitiveness of our local manufacturing industry. Furthermore, the adoption of indigenous materials such as stabilized earth blocks, bamboo-reinforced concrete, and locally sourced roofing materials has led to cost reductions of up to 30% in some housing projects.

13.     In the Northern Region, communities have embraced interlocking compressed earth bricks, significantly reducing dependency on imported alternatives. Similarly, in the Niger Delta, the use of recycled plastic as a construction material is not only tackling waste management issues but also providing affordable housing solutions.

14.     Finally, I will like to thank and specially recognize Arc. Nuhu S. Wya and his Task Team on the establishment of the Building Materials Manufacturing Hubs for their detailed work and guidance. The establishment of local building materials manufacturing hubs and the development of fiscal incentives are critical to addressing the challenges in the construction sector. These efforts of the FGN, will not only lower the cost of building materials but will also create jobs, stimulate regional development, and reduce our reliance on imports.

15.     We look forward to engaging with you, our esteemed stakeholders, to explore the best ways to implement these initiatives. Together, we can ensure that Nigeria’s construction industry becomes more self-sufficient, efficient, and competitive, contributing to the overall growth and prosperity of our nation.

16.     Thank you for your time and participation. We look forward to a fruitful and productive session.

KEYNOTE ADDRESS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE MINISTRY’S 2025 SECTOR RETREAT, HELD AT RADISSON BLU HOTEL, IKEJA, LAGOS, ON WEDNESDAY, 19TH FEBRUARY 2025.

Protocols

1. This is the first Housing and Urban Development Sector Retreat we are holding as a Ministry since assuming office about seventeen (17) months ago. It could not have come at a better time, as we are just about to enter another budget year following the recent passage of the 2025 Appropriation Bill by the National Assembly.

2. This Retreat is also special due to the participation of the Distinguished Chairmen and Members of the National Assembly Committees that oversee our Ministry. We are also joined by several other critical housing sector stakeholders, including Chairmen and members of the Reform Task Teams we set up, who have done excellent work, as well as professionals from the private sector.

3. Together, we have gathered here a distinguished pool of personalities to brainstorm, interact, and share knowledge, ideas, and insights on how to actualize the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR.

4. Before I proceed, I want to take a moment to specially appreciate the Chairmen and Distinguished Members of the National Assembly. When the Budget Office presented their budget, the Ministry initially received a significant reduction from the amount provided in 2024.

5. We engaged with the National Assembly Committees, and they intervened to increase our budget by an additional N50 billion. They deserve a big round of applause from us all on behalf of Nigerians. What they have done is not for us as individuals but for the many Nigerians who will benefit from the Ministry’s interventions, the additional jobs that will be created, the businesses and individuals that will be empowered through our increased capacity to offset inherited liabilities, and the positive impact on the economy.

6. While we are deeply grateful for this increase, like Oliver Twist, we would like to ask for more. If you recall, we had made a strong case for an additional N360 billion to enable us to expand the coverage and spread of Mr. President’s Renewed Hope Estates to 18 more states, expand our urban renewal program to cover over 100 more sites and to take care of liabilities alongside others.

7. The N50 billion is a good start. We will continue to engage with our National Assembly stakeholders, whom we hold in the highest esteem, as well as the Budget Office. In fact, I have set up a Stakeholders Management Team, led by the Hon. Minister of State and the Permanent Secretary, in whom I am well pleased, to ensure that we are proactive in carrying critical stakeholders along in all our activities.

8. What I have been advocating for, in line with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR, is that as a country and a government, we must prioritize housing as a catalyst for economic growth. Investment in housing and urban development is not only a moral necessity but also an economic imperative. When we provide people with decent homes and build livable communities, we are not only improving their quality of life, making them proud and patriotic Nigerians, but we are also developing the economy and ensuring national security.

9. Under the Renewed Hope Agenda, Mr. President listed housing as critical infrastructure, in the same category as roads, bridges, and others. What we are engaging with relevant ministries and stakeholders in government to correct is the continuing mismatch between the required interventions in housing and the budgetary allocation. It is a great irony that housing still receives only a fraction of what is allocated to other similar infrastructure sectors despite its massive potential as a catalyst for economic growth.

10. As stakeholders, you would agree that there have been several attempts by previous administrations over the past 50 years to fix Nigeria’s housing problems.

11. If you look at the state of the housing sector today, you will see that the results are not encouraging. We have a huge housing deficit, with the majority of Nigeria’s 43 million households living in substandard housing. Additionally, the majority of our cities are surrounded by slums.

12. Our sector is one that has suffered political neglect since the period immediately after independence, when emphasis was placed on five-yearly Development Plans as the vehicle for economic growth.

13. Under the Renewed Hope Agenda of Mr. President, we are determined to make a difference. We are optimistic and encouraged by the possibilities that the future holds, rather than the failures of the past. Just because programs failed in the past does not mean they will fail today.

14. As you all know, leaders matter in the history of nation-building, and what they bring to the table also matters. That is what Mr. President represents, and we intend to replicate his CAN-DO SPIRIT at the Ministry of Housing and Urban Development, together with all stakeholders, to rewrite the history of housing and urban development.

15. We want the Renewed Hope Era for Housing to be the reference point for generations to come for massive and comprehensive housing and urban development.

16. We deliberately chose “Actualizing the Renewed Hope Agenda for Housing and Urban Development” as the theme of this Retreat. At this Retreat, we aim to review what we have done so far toward actualizing Mr. President’s Renewed Hope Agenda for Housing and Urban Development, interrogate our challenges and successes, explore opportunities, and set out a clear pathway to ramp up the tempo of our activities.

17. For the sake of establishing immediate context, it is important that I lay out the Action Plan which Mr. President handed to us when we assumed duty. This includes:

1. Increasing the supply and availability of decent and affordable housing to Nigerians.

2. Implementing land reforms to improve land administration, thereby unlocking the capacity of the real estate sector to contribute to economic growth and grow the Gross Domestic Product (GDP).

3. Reforming federal housing institutions, including the Federal Housing Authority (FHA) and the Federal Mortgage Bank of Nigeria (FMBN), to better deliver on their mandates.

4. Establishing a National Social Housing Fund (NSHF) to mobilize and administer concessionary funding for the provision of decent shelter for no-income, low-income, underprivileged, and internally displaced Nigerians.

5. Establishing Manufacturing Hubs—one in each of the six geo-political zones of the country.

6. Implementing a Multi-Agency Project Delivery Framework to ensure proper coordination among all housing institutions in the delivery of housing, ensuring alignment along the same focus.

7. Expanding the National Urban Renewal and Slum Upgrade Program.

18. The question I ask myself is how much progress we have made toward achieving these goals. If history were our reference point, we would say that we are doing well. The biggest achievement of the eight years before we came on board was the National Housing Programme, which started in 2016 with plans to build 7,522 housing units. Over the eight years, only 3,388 were completed.

19. On our part, within 17 months, we have 14 active construction sites for a total of 10,112 housing units. With the pace of work at these sites—many already at roofing levels—we are on course to have all these units and more completed within a maximum three-year period.

20. However, history is not our reference point. The size of the housing problem, which requires us to build at least 500,000 housing units annually, is what we have set our eyes on. On this front, we are not even scratching the surface.

21. Regarding the Ministerial Deliverable of increasing the supply of at least 20,000 housing units annually, which is our immediate target, we can say that with 10,112 housing units under construction in 14 locations nationwide, we are making progress.

22. Another area where we are making good progress is in reforming the land administration system in our country. This is a longstanding problem that has been listed in all policies and whitepapers on housing since independence over 50 years ago. The aim is to develop an effective land administration system to make land ownership available, secure, accessible, and easily transferable at affordable rates.

23. First, we set up a Land Reform Task Team, which has submitted a comprehensive blueprint on strategies and initiatives that the Ministry can implement to achieve effective governance of lands in our country. This is a subject of deliberation at this Summit.

24. Second, we are currently working with the World Bank, in partnership with state governments, toward the implementation of a National Land Registration and Titling Programme. The plan is to increase the formalization of land transactions in the country by 50% over a ten-year period. This would unlock over $150 billion in dead capital and help increase Nigeria’s GDP by 30%. The World Bank was here on the first Technical Mission in November last year and is scheduled to return for the second mission in early March.

25. On institutional reforms, the establishment of a National Social Housing Fund, and Building Materials Manufacturing Hubs, we have received the reports of the Task Teams, reviewed their recommendations internally, and are clear on the next steps. These positions will also be presented here at the Retreat for additional inputs from stakeholders.

26. Additionally, we have upscaled and expanded our National Urban Renewal and Slum Upgrade Programme in line with the urban development component of our mandate. We currently have over 100 projects completed in several locations nationwide to improve the livability of Nigerians in semi-urban, rural areas, and villages.

27. 2025 will be an ACTION YEAR for us at the Ministry. We aim to move with speed to get all these reforms off the ground. However, this is only possible with your support and input. WE HAVE A BIG HOUSING PROBLEM, AND WE INTEND TO APPROACH FIXING IT IN A BIG WAY. SMALL EFFORTS WILL NOT TAKE US ANYWHERE.

28. We are fully aware that a key part of the Ministry’s mandate is policy formulation. In this direction, we have also made notable progress. The Ministry worked with UN-Habitat to produce a National Urban Development Policy, which is pending presentation and approval by the Federal Executive Council (FEC).

29. The Policy outlines a framework for coordinating a 10-year program of action for sustainable urbanization in our country. Through this, we aim to domesticate and customize the goals of signed international policies, operationalize national policies in multiple sectors, and create cities that work for all residents.

30. The NUDP is prepared with the objective of harnessing well-managed urbanization as an engine of growth for the national economy.

31. We have also exhaustively studied the National Housing Strategy Report 2023, which was launched by my predecessor. I must acknowledge that the team that developed it, in liaison with FMDQs, PWC, and several other members from the Ministry and the industry, did a thorough job. It is a well-researched, Ministry-sponsored research and strategy paper on housing. However, because most of the data used was from 2019, and so much has changed within the macroeconomic environment, especially in the last three years, we are looking to review and update it.

32. Furthermore, we are working to create a framework for the establishment of a Real Estate Regulatory Authority. I must give credit and acknowledge the tireless efforts and advocacy of the House of Representatives Committee Chairman on Housing and Habitat, Abdulmumin Jibrin, for this initiative. We consider it necessary and are committed to working with the House Committee and all stakeholders to actualize it.

33. We have also taken note and are working on ways and strategies to ensure that Nigerians use properties only as designated in city plans. This is also a key point of concern for the Hon. Chairman, House Committee on Urban Development, Hon. Abiante. We shall be engaging with the Committee to actualize this as well.

34. In conclusion, distinguished guests and stakeholders, this retreat marks a pivotal moment in our collective journey to transform Nigeria’s housing and urban development landscape.

35. The discussions, insights, and collaborations we will foster here over the next two days reaffirm our shared commitment to the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR. As we discuss, engage, and share ideas at this retreat, let us carry with us the spirit of urgency, innovation, and collaboration. Let us remember that housing is not just a roof over one’s head; it is a foundation for economic growth, social stability, and national pride. Together, we have the power to rewrite the narrative of housing and urban development in Nigeria.

36. God bless the Federal Republic of Nigeria. God bless you all.