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.
Senate Moves To Ensure Provision Of Affordable Housing For Poor Nigerians The Senate on Thursday mandated its Committee on Housing to urgently work out modalities with the various stakeholders in the National Housing Development sector to ensure the implementation of affordable housing for the poorest Nigerians. The resolution was reached after consideration of a motion on the “Urgent need to reform the Housing Policy and Mortgage Financing in Nigeria to meet the escalating housing demand in the country.” Sponsor of the motion, Albert Bassey Akpan, said low and middle class income earners constitute the largest active population in Nigeria. This population, according to him, finds it difficult to have access to housing in their lifetime. He recalled that the creation of the National Housing Fund through the National Housing Fund (NHF) Act of 1992 was specifically intended to cater for Nigerians in line with the various Housing policies and International Conventions and Treaties to which Nigeria is a signatory. Akpan stated that by virtue of the provisions of the NHF Act, a working class Nigerian is required to contribute 2.5 percent of his or her monthly salary to the fund which provides the source of funding to the Primary Mortgage Institutions (PMIs). He said, “Access to the fund through the PMI is cumbersome due to stringent and complex eligibility criteria which makes the development of housing through the fund challenging or practically impossible to date.” “Since the creation of the fund in 1992, the Federal Mortgage Bank of Nigeria as at 2013 disbursed only N100.5 billion. “In 2015, out of 4 million registered contributors to the fund, only 60,000 (1.5%) were able to access mortgage loans through the funds, leading to the construction of only 40,653 houses across the country,” Akpan said. The lawmaker further lamented that there exist little or no impact of the National Social Housing Development Programme in the country over the years owing to the escalating population growth in Nigeria. “There is dire and urgent need for a total review of our National Housing Policy framework to meet the needs of our people, especially the poorest Nigerians in line with the various International Conventions/Treaties of which Nigeria is a signatory,” Bassey said. In his contribution, Senator Fadahunsi (PDP, Osun East) called on the Federal Government to undertake an immediate overhaul of the country’s housing policies with a view to easing the burdens of poor Nigerians. “There is need to reorganise the housing policy, so that it will benefit the whole of Nigerians as soon as possible,” he said. Another lawmaker, Senator Binos Yaroe Dauda (PDP, Adamawa South) described Housing as “one of the fundamental needs of man.” The lawmaker, who called for a review of housing policies and mortgage financing, added, “It is important for this sector to be reformed, so that our people can have houses.” ...
We Are Critical Stakeholders To Create 10 Million Jobs For Nigerians-Fashola The Honourable e Minister of Works and Housing, Mr Babatunde Raji Fashola SAN has declared that his Ministry is strategizing towards playing a vital role in supporting President Mohammadu Buhari’s determination to create 10 million jobs for Nigerians, especially for the teaming youths. He made the declaration today at the 25th meeting of the National Council on Works in Calabar, Cross River State. The theme of the Council Meeting is ‘’ Infrastructure as the pathway for prosperity’’ which according to him was carefully chosen to address the complex issues of road infrastructure development in the country with the view to proffering tangible solutions to some of the problems in Nigeria , thereby giving the good people of Nigeria qualitative services they deserve. Fashola who was ably represented by the Minister of State for Works and Housing, Engr. Abubakar D. Aliyu maintained that it behoves on all Stakeholders in the Works sector to find new enduring possibilities on how to establish the link between infrastructure development and job creation, poverty alleviation and empowerment of the informal sector in ensuring that the 10 million jobs target for the next ten years by Mr. President was achieved. The Minister disclosed that his Ministry would effectively collaborate with other relevant agencies saddled with similar responsibilities of monitoring, maintenance and survey of roads network in Nigeria with the view to develop them to the desired standard. He commended the Government and the good of Cross River State for providing a safe and conducive environment for the 25th Meeting of the National Council on Works and hosting the prestigious annual International Calabar Carnival event which according to him has made the ancient city, not only, a global home for entertainment but also a veritable economic hub to reckon with , in South- South Nigeria. In his address, the Executive Governor of Cross River State, His Excellency, Prof. Ben. Ayade who was represented by his Deputy, Prof. Ivara Esu urged the Federal Road Maintenance Agency to rise up to the challenge of road maintenance , ‘’ We have thrown overboard our maintenance culture, let us revive our road maintenance culture, let us maintain the roads so that the failing path will not expand the more’’ he said. While commending the Management and staff of the Federal Ministry of Works and Housing, and all the Stakeholders in the Works Sector for considering his state worthy to host the 25th Meeting of the National Council on Works, Ayade called on Federal Government to reconstruct the failed highways in his State with concrete , adding that the Ikom, Itu, Bakasi and Katsina-Ala highways were vital and of Scio- economic importance to Cross River State in particular and Nigeria in general. ...
We Need States To Achieve Affordable Housing In Nigeria - Fashola Works and Housing Minister, Babatunde Raji Fashola, SAN said that for Nigeria to achieve affordable housing for its teeming population, the Federal Government has to work with the State Governments. Delivering his keynote address at the 8th Meeting of the National Council on Lands, Housing and Urban Development with the theme: " Housing Development and Consumer Credit as Strategies for National Development" the Minister said that collaboration between the Federal and State Governments was very crucial in achieving affordable houses for Nigerians. According to the Minister, the basic requirement for building and owning a house is land which is owned and controlled by the states, adding that the urban development and planning is also a matter within the jurisdiction of the states as determined by the Supreme Court. "Whether you can build a filling station, school, business centres is determined by the states, " he explained. Fashola also noted that the issue of housing deficit in Nigeria is an urban issue. " In our rural areas there is no housing deficit, no traffic and waste management issues, these are mostly prevalent in the urban areas, " he said. The Minister also described the theme of this year's Council as apt and carefully chosen as a step towards the ladder of prosperity, adding that, the meeting would afford participants from the Federal level the opportunity to interface with their states counterparts as a foundation for achieving national prosperity. Continuing, Fashola also said housing projects could add value to Mr. President's vision of lifting over 100 million Nigerians out of poverty in the next 10 years by creating access to opportunities, income, nutrition, shelter and freedom from diseases. "By Government's action in construction sites all over Nigeria, we are reaching out to people and moving them from Poverty to prosperity, " he said. In his opening remarks the Minister of the Federal Capital Territory, Muhammad Musa Bello represented by Engr. Umar Gambo Jibrin, the Executive Secretary Federal Capital Territory Authority (FCDA), said, the theme for this year's council was pertinent considering the housing deficit challenge the country is currently facing and the lack of financing to tackle it. He said that, as one of the fastest growing cities in the world, FCT has a major problem of shortage of housing. While calling on Financial Houses to make a long financing opportunities to address challenges in the housing sector, Bello said that, the process of land administration was transparent and that the Federal Capital Territory Administration was working to ease the collection of certificates of occupancies (C of Os). Delivering his Goodwill message, the Chairman of Senate Committee on Housing, Senator Sam Egwu said the responsibility of any Government was to provide affordable houses for its citizens. "We at the National Assembly will provide the legislative support to move the housing sector forward. We are ready to work on any bill sent to us, " he said. ...
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