Dangiwa Advocates Cross-Subsidy Inclusion in MOFI Real Estate Investment Fund Framework * Epresess Ministry’s support for MREIF Minister of Housing and Urban Development, Ahmed Musa Dangiwa, has urged the management of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to integrate cross-subsidy mechanisms into its framework for housing sector operations. The Minister made the call in Abuja during an interactive session organized by the House of Representatives Committee on Housing and Habitat with a focused on the Federal Government's establishment of MREIF and the suspension of the Single Obligor Limit imposed by the Central Bank of Nigeria (CBN) on the Federal Mortgage Bank of Nigeria (FMBN). Arc Dangiwa emphasized that such an approach would enable the construction of cost-effective housing, making homeownership more accessible to low-income Nigerians. Citing Algeria’s success where the government delivered one million homes in a year through cross-subsidy mechanisms, Arc Dangiwa proposed allocating 20–30% of funding for housing estates in Nigeria toward cross-subsidization. He explained that this approach would ensure uniform infrastructure and external features while adjusting internal finishes to suit varying affordability levels, thereby enhancing homeownership opportunities for low-income Nigerians. “Whenever we are funding any estate to be developed, 20 to 30 percent of the funding should be cross-subsidized,” the Minister emphasized. Dangiwa commended the Honourable Minister of Finance, Mr. Wale Edun, for securing Federal Executive Council approval for MREIF, and described it as a transformative initiative poised to revolutionize the housing sector and call for innovative funding strategies beyond traditional budgetary allocations. Dangiwa while addressing the restrictive impact of the Single Obligor Limit imposed by the CBN on FMBN, praised the House Committee on Housing and Habitat for intervening to halt the practice, noting that the cap on disbursements of 50 percent shareholders’ fund has limited the bank’s ability to fund primary mortgage institutions (PMIs), thereby hindering mortgage accessibility for Nigerians. Dangiwa also advocated for the recapitalization of FMBN, to enable it create affordable mortgages without relying on MREIF funding while more support for FHA would enhance their capacity to strengthen housing development in the country. The Minister reiterated the importance of innovative financing, institutional collaboration, and affordability as critical to addressing Nigeria’s housing deficit and expressed confidence in achieving sustainable growth in the housing sector under the Renewed Hope Agenda. In his welcome remarks, the Chairman of the House Committee on Housing and Habitat, Hon. Abdulmumini Jibrin, noted the importance of engaging key stakeholders in shaping the framework for MREIF. He confirmed the committee’s position on halting the Single Obligor Limit and emphasized ongoing efforts to address concerns raised by stakeholders, including the FMBN and MBAN. The Chairnan directed representatives of the CBN, FMBN, and MBAN to collaborate and propose practical solutions within a week. Dr. Armstrong Takang, Chief Executive Director of MOFI, highlighted President Bola Ahmed Tinubu’s directive to prioritize liquidity in the housing sector and stressed the need for accessible and affordable mortgages with longer repayment terms to address affordability challenges and reduce the prevalence of abandoned houses. Dr. Takang also outlined MREIF’s dual strategy of supporting developers with off-take guarantees and facilitating low-cost mortgages for buyers. Representatives from the CBN, FHA, MBAN, and REDAN expressed support for the establishment of MREIF, emphasizing the importance of a well-structured and approved framework. Suggestions included leveraging funds from unclaimed dividends, dormant accounts, and PENCOM funds to enhance the fund’s liquidity. The CBN requested a detailed conceptual framework to conduct a thorough review before making an informed decision.
Fashola Inaugurates FHA Executive Management Team Minister of Works and Housing, Babatunde Raji Fashola SAN has today inaugurated the Executive Management Team of the Federal Housing Authority (FHA), with a charge to strive to complete the ongoing housing projects of the Federal Government. The new executive management team of the FHA has Senator Olugbenga Ashafa as Managing Director/Chief Executive Officer while Honourable Abdulmumuni Jibril is Executive Director, Business Development and Mr. Maurice Ekpeyong is Executive Director, Housing Finance and Corporate Services. While congratulating the management team for the confidence reposed on them by the President, the Minister expressed the hope that the trust and confidence would be well kept in the discharge of their duties. Fashola said, “Mr. President has chosen well because the team members have the requisite skill and experience needed to move the FHA forward”. The Minister who took time to analyse the positive qualities of the appointees, stated that the combined effort of the trio would form a strong team that would actualize the aim of the current administration of providing affordable houses which is being addressed in various fronts. While explaining that the Act establishing the FHA sets out clear responsibilities for the organisation, he urged the management team to work assiduously to ensure that the challenge of housing gaps in Nigeria is addressed. Accordingly, the Minister pointed out that, through the Federal Government Housing projects, people are empowered at the grassroots by way of strategic and planned maintenance. He also urged the management team to commit to developing new estates in urban centers in order to address the housing needs which are greater in urban centers. The Minister also assured the management team of the Ministry’s readiness to give them the necessary support to ensure their success, adding that the ministry would not meddle in their affairs unnecessarily. “We don’t interfere on what Parastatals do but we will intervene if we see you veering off”, he said. In a goodwill message, Senator Sam Egwu, Chairman Senate Committee on Housing enjoined the members to work as a team so as to realize their mandate while assuring them of support by the National Assembly. Responding on behalf of the Management team, the new MD/CEO of FHA Senator Bareehu Olugbenga Ashafa expressed gratitude to President Muhammadu Buhari for the trust and confidence reposed on them by the appointment. He pledged his team’s unalloyed support and commitment towards providing affordable houses for Nigerians. ...
Fashola To Professional Builders : Intervene During Construction To Avoid Building Collapse * Condoles with Governor, Government and People of Lagos over Sunday’s explosion in the State * As Nigerian Institute of Building confers Honorary Fellowship on Minister * Debunks recent misrepresentation in the media over unoccupied houses across the country * Underscores need to build knowledge and values as he describes building as “a very ennobling undertaking” The Minister of Works and Housing, Mr. Babatunde Fashola SAN, Monday charged members of the Nigerian Institute of Building (NIOB) to endeavour to intervene at the time of construction of any building in any part of the country as a proactive step to stem the incidence of building collapse and consequent loss of life and property. Fashola, who gave the charge when he hosted members of the Institute who paid a courtesy visit and conferred the honorary Fellowship of the Institute on him, expressed deep condolence to the Governor, Government and people of Lagos State over the explosion that caused loss of life and property and left many injured in the Abule Ado part of the State. Speaking at the Conference Room of the Ministry, Fashola, who began his remarks by acknowledging the sad incident which occurred on Sunday, expressed deep sorrow at the unfortunate incident describing it as a tragedy which, according to him, had caused a painful separation of the dead victims from their loved ones. Noting also that the incident was avoidable, the Minister declared, “I join many Nigerians and non-Nigerians in expressing my very deep condolences to those who lost loved ones and also those who suffered varying degrees of injuries and also lost properties; our very deep and sincere sympathy go to the Governor and the Government and people of Lagos State”. “Our thoughts, our prayers and sympathy and best wishes are with you as you go through these difficult time, especially in helping bereaved residents to deal with the very tragic pain of separation in an untimely, very painful and perhaps avoidable manner and I pray that the souls of the dear departed rest in peace”, he said. Fashola, who charged the Institute to take interest during the construction of buildings to ensure that the right things were done, said at that point the opportunity to give advice and effect correction was still available adding that such intervention would be more timely and valuable than after a building had collapsed. Obviously responding to the opening remarks of the President of the Institute who stressed the need to enforce the law to serve as deterrence, the Minister said as important as it is to enforce the law in the Built Industry as a means of minimizing incidences of building collapse, questions should be better asked during the construction of the buildings to ensure that the right things were being done. He declared, “Mr. President, I couldn’t agree with you more that we need to enforce the law. But, I think there is a lot of work for all of us to do; because we must ask questions and I believe that as an Institute and as Professionals we, more than anybody, have the rights to ask those questions. And it is not when buildings have collapsed that we can ask those questions; it is while those buildings are being constructed”. “You can go in there and see who is there; and that must not and should not offend anybody; just to see that the right thing is being done. In the interest of the preservation of life, that should not offend anybody. That will be my real charge to the Institute: How we can ensure that every building under construction is our business because every death that happens when a building collapses is also our business. Reiterating that the most auspicious time to intervene was during the construction of a building, the Minister declared, “If we see something that is wrong during construction that is the time to intervene, to advise and to correct”, adding that his Ministry would continue to interact and interface with the institute in the effort to serve Nigerians better. The Minister also used the opportunity to correct the misrepresentation in a section of the Media of a statement he made recently while hosting the Senate Committee on Housing reiterating that he only said the Ministry was understudying to see how to apply to the Public Sector the model by some organizations that are redesigning their large buildings to smaller units to make them affordable for rental. Fashola, who said the media report gave the impression that government planned to seize peoples’ unoccupied houses and lease them out, explained, “What I said, and I will repeat, was that we see a lot of empty houses; we see the experience of some corporate organizations beginning to break up these houses because they are too big and, therefore, people cannot afford them. “And that we see some people are now breaking them into smaller units and, therefore they become sizeable and therefore affordable for the pockets of some people. So those houses that have been empty for a while and generating no income are now generating income; and that we are understudying that model to see what is possible in the public sector”, he explained further. He declared, “So before you incite other people against me, I have no right to seize peoples’ houses and lease them out if they are private property”, and advised that those whose responsibility it is to report others have the right to ask questions as well as follow-up questions to clarify any issues that were not clear to them concerning the subject of their reports. Fashola also spoke on the need for builders to build what people could use adding that it was necessary to first plan and find out who would use the building before embarking on the construction. The Minister pointed out that going by the realities of the present generation, young people have shown that they do not need too much space adding that such realities should be imbibed into the building culture for the present generation. He told his Guests, “And the lesson we are seeing is that the generation of our children don’t have our own hoarding instincts. They are not taking on too much Aso-Ebi and all those things, they need very little space. So if we are building for that generation, we must build with their sensitivity and their needs in mind so that we can really then build what they will use and we must build to last”. Describing building as “a very ennobling undertaking”, Fashola, who said the profession both ennobles the builder and the beneficiary, added, “Whether it is a house or a road, building is ennobling and those who build really are those who contribute to prosperity as distinct from those who destroy,” acknowledging also that although it is good to build brick and mortar, it is also important to build knowledge and values. “So if we build without knowledge, without values, it will not last. If we build because we compromise values, we will compromise rules and the results are predictable and they are unpleasant”, he said adding that it is only true professionals that could be trusted to uphold the tenets of the Building Profession. Thanking the Institute for the honour of the Award, Fashola said he was receiving the award on behalf of all those people who worked with him in Lagos and those currently working with him, including the Minister of State, Engr. Abubakar Aliyu, the Permanent Secretary, Mohammed Bukar and the Directors pointing out that whatever achievements that earned the award was through a team effort. “Yes we hold a ceremony to confer Fellowship. But I have found it difficult, and still find it difficult, to take individual credit for any work that a team does. And, therefore, whatever may have attracted this award can only be the work of a collective effort. So I wear this gown and I don this hat on behalf of all the members of my team; those who had worked with me back in Lagos and those who continue to work with me here”, the Minister said. The Minister promised, however, that he would shoulder the enormous responsibility of upholding the knowledge and values of the Institute that come with the Award “to ensure that all the people who pass through the portals of this Institute are found worthy in knowledge and in values before they can be called members of the Institute of Building”. “It is those people who we can then trust to ensure, not just the production of the next generation, but the diligent application of all of the essential tenets of the Building Profession, because it is a Profession, it is a serious business”, he said. Earlier in his opening remarks, President of the Institute, Builder Kunle Awobodu said the Award was conceived as far back as when the Minister served meritoriously as Governor of Lagos State, who, among several other infrastructure renewal projects and policies which promoted an organized and livable society, raised a statue in honour of the engineering genius and social, Professor Ayodele Awojobi in Yaba. Another reason, the President said, was the work Fashola did and the awareness the former Governor raised on the tragedy of building collapse adding that the inspiration he got to champion the campaign against building collapse in the State came from the former Governor who, according to him, formed a technical committee in 2008 for the reform of the State’s Physical Planning Law with prominent Lagos Professionals including the present Lagos State Governor, Mr. Babajide Sanwo Olu as members. The President, who canvassed for the strict adherence to the Building Code and enforcement of the Law on Building, said strict enforcement of the law remained the only way to stem incessant building collapses across the country. Also present at the colourful Award ceremony were the Minister of State, Engr. Abubakar D. Aliyu, the Permanent Secretary, Mr Mohammed Bukar, Directors, Special Advisers and other top officials of the Ministry while President of the Institute was accompanied by the Chairman, Council of Registered Builders and Vice-Chancellor, Ahmadu Bello University, Professor Kabir Bala , Vice Chancellor, Plateau State University, Professor Yohanna Izam , Deputy Vice Chancellor, Federal University of Technology Akure, Professor Deji Ogunsemi , Chairman, NIOB College of Fellows, Builder (Mrs) Adebolanle Araba , NIOB Immediate Past President, Builder Kenneth Nduka , NIOB Trustee Member, Builder (Mrs) Iyabode Bolarinwa and Chairperson, Association of Professional Women Builders, Builder (Mrs) Lami Mohammed among many other prominent members. ...
Fashola Commissions Gombe House Estate Minister of Works and Housing, Babatunde Raji Fashola, has commissioned the Gombe State Investment Housing Estate financed by the Federal Mortgage Bank of Nigeria (FMBN) The project was conceived as a result of partnership between FMBN and Gombe State Investment and Property Development Limited and was executed under the FMBN Estate Development Loan (EDL) Window. Speaking during the commissioning ceremony in Gombe, Fashola reiterated the commitment of President Muhamnadu Buhari to deliver affordable housing for Nigerians and to complete all inherited projects accross the country. He commended the vision of Gombe State Investment limited for starting the estate and the partnership it entered into with the FMBN that ensured the final delivery of the estate after many years of its inception. The Minister also used the occasion to flagg off the North East National Cooperative Housing Development Scheme which he said was basically to encourage people come into groups to build for themselves the type of houses they need. Accordingly, he explained that the idea of the housing Cooperative was for buyers to determine houses that meet their expectations and will also remove the middle men contractors and make houses more affordable to low and middle income earners. On the economy of Housing, Fashola stated that many jobs are created and welth redistributed through Housing contractions, pointing out that; food vendors, Masons, artisans, labourers, Carpenters, tailors, welders are engaged and earn income working on the sites. While urging people to come into Housing Cooperative, Mr Fashola congratulated the beneficiaries of the houses and prayed that they will find homes and peace in the estate by the grace of God. In his address, Gombe State Governor, Muhammadu Inuwa Yahaya commended the commitment of the government of President Muhamnadu Buhari in pproviding shelter to Nigerians. He explained that providing shelter is one of the responsibilities of any government that has concern for it's citizens. Speaking earlier, the Managing Director and Chief Executive Officer of FMBN, Arch Ahmed Dangiwa, commended the effort of the Minister Fashola for encouraging the FMBN to collaborate with states' government in providing housing through Cooperative. He explained that, it was through the partnership between the FMBN and Gombe State Investment limited that the estate was delivered. A total number of 150 houses have been completed out of the 311 conceived. This comprises 82 units detached two bedroom bungalows and 68 units of 3 bedroom detached. A beneficiaries of the estate Ayuba Maiyama who spoke on behalf of his colleagues, appreciated the effort of Gombe State Investment for providing them the opportunity to own the houses, and also appealed to the Minister and the FMBN to complete the remaining 161 houses to make up the 311 earlier conceived. The selling price is; N6 3 million for the 2 bedroom and N7.5 million for the 3 bedroom. ...
HOUSE OF REPS. COMMITTEE INTERACTIVE SESSION ON MREIF AND FMBN SINGLE OBLIGOR LIMIT
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa
OCCASSION OF THE 2024 PEWAN ANNUAL LECTURE AND CONFEREMENT OF AWARD OF RECOGNITION AS CONSISTENT CHAMPION OF ACCESSIBLE MORTGAGE AND AFFORDABLE HOUSING ON HON MINISTER ARC. AHMED MUSA DANGIWA, REPRESENTED BY THE DIRECTOR PRESS AND PUBLIC RELATIONS, SALISU BADAMASI HAIBA, AT LAGOS CHAMBER OF COMMERCE AND INDUSTRY
Occassion of the 2024 PEWAN Annual Lecture and conferement of Award of Recognition as Consistent Champion of Accessible Mortgage and Affordable Housing on Hon Minister Arc. Ahmed Musa Dangiwa, represented by the Director Press and Public Relations, Salisu Badamasi Haiba, at Lagos Chamber of Commerce and Industry