


Dangiwa Expresses Support for NUJ's Journalists’ Village Project * acknowledges the crucial role of the media in national development Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa has given his support to the NUJ FCT Council in order to bring to fruition, their Journalists village project in the FCT, Abuja. He also gave assurance to include members of the FCT Council of the Nigeria Union of Journalists (NUJ), in the housing programmes of the Ministry. The minister gave this assurance when a delegation from the NUJ FCT Council, led by its Chairman, Comrade Grace Ike, paid him a courtesy visit at the Ministry’s headquarters in Abuja. Dangiwa acknowledged the crucial role of the media in National development, saying that they bridge the gap between government and the people, informing, explaining and challenging the government to do better. The Minister equally expressed appreciation to the NUJ FCT Council for their consistent efforts alongside the Media and Communications team of the Ministry, in spotlighting the programmes of the Ministry and policy actions, despite resource constraints. Dangiwa told the Journalists' Union about key programmes of the Ministry under the Renewed Hope Agenda of President Bola Ahmed Tinubu; the Renewed Hope Housing Programme which he described as a transformative initiative designed to address housing deficit and create jobs. Accordingly, he explained the three (3) structured components of the Renewed Housing Agenda to include; Renewed Hope Cities of 1000 units in each of the six geo-political zones and the FCT; Renewed Hope Estates of 250 units in each state capital; and Renewed Hope Social Housing planned for 100 housing units in each Local Government Area of the country. The Minister further informed about the commencement of work for over 10,000 housing units across 14 states and the FCT, as well as the completion of more than 150 slum upgrade and urban renewal projects across the six geopolitical zones, delivering roads, solar streetlights, clean water, among others, to deserving communities. Dangiwa also spoke about the transparency approach the ministry adopted in the sale of the houses by creating the Renewed Hope Housing Portal-www.renewedhopehomes.fmhud.gov.ng, in order to give all Nigerians a level playing opportunity to purchase the houses of their choice Speaking on structural reform, Arc. Dangiwa informed of the Ministry’s collaboration with the state governments and the World Bank to modernize land administration by implementing the Nigeria Land Registration, Documentation, and Titling Programme, which would unlock more than $300 billion in dead capital, to boost investment and productivity. Similarly, he also spoke of partnership with Shelter Afrique Development Bank to finance the construction of 5,000 affordable housing units, “we are laying the groundwork for Building Materials Manufacturing Hubs in each geopolitical zone to support domestic production and reduce construction costs”, he said. The Minister while emphasizing on the significance of the media in national development, requested for continuous collaboration with the Union, in educating the public to dispel misinformation and highlight the importance of the programs of the Ministry. Responding to the request of the Union on Journalists’ village project, Dangiwa gave assurance that Ministry will support the union in securing land and facilitate building the estate through the Cooperative Housing Development of Nigeria under the Federal Mortgage Bank of Nigeria (FMBN). He adviced that the Union secures a titled land as well as an architect who would design the houses, promising to direct the Federal Mortgage Bank to create corporative housing development to build the estate for the journalists, while the Union brings off takers who gets allocated to the houses, with a payment plan of up to thirty (30) years, at 6% interest rate. Minister Dangiwa equally promised that the Ministry would inspect the ongoing pentagon building of the NUJ FCT council, for further necessary support. Speaking earlier, the chairman of the NUJ FCT council, Comrade. Grace Ike, commended the visionary leadership of the Minister in the housing sector, describing it as bold, strategic and people-centred, with remarkable strides. She applauded Minister Dangiwa’s global engagements, particularly at the World Urban Forum, as well as his commitment to disability-friendly housing in compliance with national laws. Comrade Ike, sought the support and intervention of the Ministry in the NUJ FCT Journalists’ Village project in order to actualize affordable housing scheme for journalists; infrastructure support for the completion of a Pentagon building and a new ultramodern hall to accommodate over 2,000 journalists. She also appealed for support in access to Housing finance and Capacity Building, seeking the inclusion of journalists in housing finance schemes through FMBN and other platforms. “We are not just here with requests, we come as partners, ready to spotlight your successes, engage critically where needed, and be part of the national solution. With your support, the NUJ FCT Council will continue to strengthen the pillars of democracy, holding the powerful accountable, while working with government to achieve national goals”, she voiced. The Chairman, further extended an invitation to the Honorable Minister to be a special guest at the Press Week event of the Union, scheduled for next month.
Land Administration: We are committed to fixing gaps in the Housing Sector - Dangiwa The Minister of Housing and Urban Development Arc. Ahmed Musa Dangiwa, has reiterated the Ministry’s commitment to fixing the existent gaps and making a historic difference in the housing and urban landscape of the country. The Minister brought this to light in a meeting with the Technical Mission from the World Bank on Land Titling, Registration and Cadastre, at the Ministry’s Headquarters in Abuja. He appreciated the Ministry’s longstanding partnership with the World Bank, noting that it was aimed at tackling systemic issues that have hindered effective land administration, management, governance, and urban development. Recalling a recent engagement of the Ministry with the World Bank Vice President for Infrastructure, Mr. Guangzhe Chen alongside his team, the Minister revealed some identified key focus areas where the Ministry needs the technical and financial support of the Bank to enable the commencement of realizing the Renewed Hope Agenda of President Bola Ahmed Tinubu, which is to streamline land administration and ensure effective urban governance in the country. According to the Minister, some of the priority areas are the Implementation of a National Land Registration and Titling Programme in partnership with State Governments, a move that would unlock over $300 billion dead capital tied up in undocumented land. He said the initiative would enable the registration, documentation, and titling of all land parcels, development and launch of a National Digital Land Information System (NDLIS), Increase the formalization of land transactions from less than 10% to over 50% within the next 10 years, as well as train and deploy technically competent land registration officers nationwide. Other priority areas for collaboration as stated by the Minister are the Implementation of the National Urban Development Policy which contains vital initiatives for improving the management of urban areas; and the area of development of a Framework to address systemic barriers along the housing value chain. Dangiwa expressed excitement in the massive institutional capacity of the Bank, as well as their technical expertise and knowledge garnered over decades from implementing similar interventions in countries around the world. Accordingly, he conveyed his expectations that the Bank would bring in experts who have successfully led similar programs in other countries, particularly African Countries like Kenya, Sierra Leone, and South Africa, with similar contexts, and in collaboration with the Team at the Ministry, State governments, and other critical stakeholders, to design the implementation plan. While the Minister decried the unfortunate 10% statistics of registered and titled land in the country, as well as the low livability of urban centers, he expressed optimism that the challenge posed an opportunity to make a difference; “Under the Renewed Hope Agenda of Mr. President, we at the Ministry are committed to making this difference. With the support of the World Bank under this partnership, I believe we are on the verge of making history in Nigeria”, he said. Disclosing a timeline of November to commence work, as agreed in the Ministry’s last meeting with the World Bank in September, Dangiwa further expressed confidence that the technical sessions was a testament that the ball has been set rolling as planned. The minister in addition, sought a timeline for the Integrated Implementation Plan, as well as deliverables. Speaking earlier, Dr. Fuad Malkawi, Senior Urban Specialist and Task Team Leader of the Technical Mission of the World Bank on Land, said they were in the ministry to discuss strategic support for land governance in Nigeria. He noted that the objective of their visit was to identify challenges facing the country's land administration, evaluate existing initiatives, and outline strategic areas where the World Bank can provide support to drive sustainable development Dr. Malkawi as well stated that the World Bank was keenly interested in land-related issues, ranging from surveying and mapping, to property taxation and infrastructure. He further informed that the bank's goal was to produce a flagship example in the African region while expressing optimism that with Nigeria's immense resources and ongoing development, Nigeria can set the standard for the rest of the continent to follow. Earlier in his opening remarks, the Permanent Secretary of the Ministry, Dr. Marcus Ogunbiyi welcomed the World Bank Technical Mission to the Ministry and the Country at large, informing the team of the Ministry’s great expectations of what they would do. He said his direct conversation with Dr. Fuad Malkawi was an attestation to the preparedness of the World Bank to intervene in the critical areas where the Ministry needs assistance. Ogunbiyi further assured the team that the Ministry would do all in their parts to support the intervention. ...
Meet the Press: Housing Minister Outlines Milestone Achievements Under Renewed Hope Agenda * Says President Tinubu's Transformative leadership enables ministry's focus on implementation Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has proudly outlined the ministry's remarkable achievements, transformative programs, and impactful reforms undertaken in alignment with the Renewed Hope Agenda, spearheaded by His Excellency, President Bola Ahmed Tinubu, GCFR. The Minister gave this outline when he made his presentation at a media parley tagged "Meet the Press," which held at Nigeria's State House in Abuja on Sunday, 17th November, 2024. Commending President Tinubu's transformative leadership for demerging the ministry from the Federal Ministry of Works, Dangiwa said the move has enabled the ministry to focus its efforts on implementing the Renewed Hope Agenda in the housing sector. Furthermore, he stated that the vision President Tinubu has for the housing ministry was that of prioritizing housing as a vital element for improving the lives of Nigerians, creating jobs, and boosting economic growth. Dangiwa informed that the Ministry has embarked on various initiatives to address the housing deficit in Nigeria, which includes: Increasing Housing Supply. He emphasised that the Ministry was committed to closing the national housing gap through the construction of 10,112 housing units via the Renewed Hope Cities and Estates Program, with 14 active sites across the nation. He explained that under the Renewed Hope Estates, twelve estates are currently under construction, with each comprising 250 housing units in 12 states, totaling approximately 3,000 units while for the Renewed Hope Cities, major urban projects are underway in the Federal Capital Territory (FCT) with 3,112 units, and additional developments in Kano and Lagos, among other states. Speaking on Job Creation and economic impact of construction in the housing sector, particularly, the Renewed Hope Housing Project, the Minister noted that over 252,800 jobs have directly been created for Nigerians, significantly contributing to the nation’s economic landscape, affirming skilled and unskilled workers are benefitting from robust employment opportunities, earning significantly above the national minimum wage. "At an average daily wage of ₦5,000, many workers are earning over ₦150,000 monthly, which is far above the national minimum wage," he said. Dangiwa, while informing Nigerians of the flexibility and seamlessness of applying for houses under the Renewed Hope Cities and Estates, introduced the Renewed Hope Online Housing Delivery Portal;www.renewedhopehomes.fmhud.gov.ng, explaining it is a user-friendly platform that has empowered over 47,605 Nigerians to explore, apply, and track their housing applications online, streamlining the homeownership process. On options of home ownership available to interested buyers, the Minister explained that the Ministry has introduced various affordable homeownership options through the National Housing Fund (NHF) and the Federal Mortgage Bank’s Rent-to-Own scheme, allowing many Nigerians access to affordable housing, Outright purchase for Nigerians who afford to pay upfront and Installmental payment option with upto four instalments allowable for convenience. "I want to use this medium to appeal to Nigerians in both formal and informal employment to join the National Housing Fund (NHF) Scheme to enable them benefit from this affordable homeownership options from the Federal Mortgage Bank of Nigeria. They are the best in the market, " He said. To enable the ministry churn out affordable housing , Dangiwa informed Nigerians the ministry has opted budgetary provisions, Public-Private Partnerships (PPPs), and international collaborations to diversify funding for housing projects, ensuring low and middle-income earners can access housing options. He said, " We are funding the 12 Renewed Hope Estates from the ₦50 billion 2023 Supplementary Budget. We also have an additional ₦27.2 billion allocated in the 2024 budget to complete their infrastructure fully while awaiting 2025 budget to expand the programme to cover more of the remaining states." Minister expressed that the ministry is committed to fulfilling the Renewed Hope Agenda by ensuring every Nigerian has access to affordable and dignified housing. "Our efforts are not just about building houses; we are building a brighter future for generations to come," he added. In addition, the Minister said that under the Public-Private Partnerships arrangement, the ministry is constructing 3 Renewed Hope Cities in FCT, Lagos and Kano and are being funded through a PPP that the Ministry signed with a consortium of developers for the delivery of 100,000 housing units nationwide. "Under this strategy, the developers source land and construction finance while the government creates an enabling environment for them to deliver housing. So far, the Ministry has facilitated a N100billion Bankable Offtaker Guarantee by the Federal Mortgage Bank of Nigeria (FMBN) for the Karsana Renewed Hope City," the Minister noted. However, unlike housing construction funded through the budgetary allocation which are relatively cheap, the PPP arrangement are usually costlier and cater for high and middle income earners because developers get their loan in double digits. "For example, a one-bedroom apartment at the Renewed Hope City in Karsana, built under a PPP model, costs about N22 million, whereas a similar unit under the Renewed Hope Estates, funded through budgetary allocations, costs approximately N8–9 million," Dangiwa maintained. Accordingly, other sources of funding strategy include collaborations with reputable organisations such as Shelter Afrique Development Bank (ShafDB) for the financing of 5,000 housing units under phase one, representing an estimated investment of ₦50 billion. The Minister informed the partnership was the first time the Ministry was directly leveraging housing finance from ShafDB,.a Pan African institution where it is currently the largest shareholder, noting ShafDB housing finance collaboration is also another Renewed Hope First that being recorded at the Ministry. Similarly, Dangiwa mentioned that progress is being made in the National Social Housing in the establishment of fund to ensure that all Nigerians, regardless of income, have access to decent housing, noting, saying, aside from the budgetary funding, the ministry is engaging with philantrophic organizations, Corporate Social Responsibility and voluntary donations from Nigerians. " We also have some willing and capable potential investors in the NSHF who are working to meet the requirements of the Infrastructure Concessionary and Regulatory Commission (ICRC)," the Minister remarked. As part of efforts to ensure effective Land Administration and not oblivion to the crucial role of land governance, the Minister disclosed that the Ministry has launched initiatives to improve land administration, including fair compensation frameworks and the National Land Registration Program. Also mentioned by the Minister was the plan to establish Building Materials Manufacturing Hubs aimed at reducing construction costs and stimulating job creation. He added that the ministry is in partnership with World Bank to develop National Digital Land System to ensure seamless land titling and registration across the country. While emphasising President Tinubu's unwavering commitment to transforming the country's housing landscape, he noted that the ministry has achieved significant milestones within 14 months of its existence as a standalone ministry, ensuring that housing and urban development receive the priority they rightly deserve. The Minister later extended invitation to all Nigerians and stakeholders to join in the effort towards a more prosperous Nigeria by participating in the National Housing Fund and exploring the available affordable housing options. ...
National Urban Development Policy to Transform Nigerian Cities into Sustainable, Resilient '15-Minute Cities' - Dangiwa - Calls for Annual National Urban Forum - Says New Urban Agenda to Promote Public Health, Tackle Climate Change Gombe, November 14, 2024 - The Hon. Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa has said that the National Urban Development Policy (NUDP) when introduced will transform Nigerian Cities into sustainable, resilient, '15-minute Cities'. Delivering the keynote address at the 13th meeting of the National Council on Lands, Housing, and Urban Development holding in Gombe, the Minister said rapid urbanisation which will see the nation's population rise to 70% by 2050 has made effective planning through innovative and sustained policies a priority. Noting that the NUDP is currently awaiting approval by the Federal Executive Council, he said such a policy is necessary for Nigeria's sustainable future as it can promote public health, mitigate climate change, and create a safe, resilient, and progressive ecosystem for all to thrive. "The NUDP's vision is clear: to transform Nigeria’s cities into well-functioning, prosperous, resilient, secure, and livable spaces for all. Achieving this vision demands a 'Business Unusual' approach, one that replaces 'Urban Pessimism' with 'Urban Optimism.' This means embracing high-density urban development over sprawl, safeguarding agricultural land and resources, and adopting integrated, evidence-based urban policies. "The NUDP also promotes a 'Healthy Cities' concept, integrating environmental health with secure, resilient urban spaces. This involves essential services like waste management, water, sanitation, and local public health systems. As the recent pandemic has shown, resilience in city design is critical for public health and community well-being. Models like the '15-minute city'— where essential services are within walking distance— offer accessible, self-sufficient neighborhoods that promote health and connectivity," he said. Dangiwa emphasised that the need for an Urban Policy is long overdue considering the fast pace at which the nation's Urban population is increasing. He, therefore, called for an Annual National Urban Forum, which he says was part of the resolutions reached at the recently concluded World Urban Forum in Egypt. "We must grasp the scale of our urban growth and the profound challenges it brings. Nigeria’s urban population is expanding rapidly, driven by an annual growth rate of 4.1%. From just 9.4% in 1950, our urban population now exceeds 52%, with projections indicating a rise to 70% by 2050. By then, Nigeria will likely be the world’s third most populous country, with over 400 million people." According to him, Nigeria has eight cities with a population above 1 million people each, and another 81 Cities each with a population ranging from 100,000 to one million, and yet with 58.8% of these urban dwellers living in Slum conditions. He added that the goal of the NUDP is to provide a framework that guides long-term, sustainable urban growth, addressing not only housing and infrastructure needs but also creating the foundation for economically vibrant, climate-resilient, and inclusive cities. Explaining the nexus between effective urban planning, public health, and climate change, Dangiwa said proper planning will ensure better sanitation, disease control and containment, quicker access to health facilities, as well as smart city designs which support climate action. "NUDP also prioritizes climate responsiveness. Climate change poses a severe threat, with impacts like drought, flooding, and extreme weather intensifying. Without adaptation, climate change could cost Nigeria between 6% and 30% of its GDP by 2050. Therefore, urban planning is a frontline defense in building climate resilience and economic security," he observed. The Minister called on the Federal, State, and Local Governments to embark on urgent collective action towards the implementation of the policy when it comes on stream, noting that while massive housing construction and new cities development are urgent priorities at this time, they must be done alongside effective urban planning. He commended the efforts of President Bola Ahmed Tinubu over the last one year, especially in the area of Housing development, noting that the ministry has more houses under construction in one year than it built in the previous eight years put together. He also said the ministry's strategy of embracing Public Private Partnerships (PPPs) is crucial to that success, but admitted that the country is still only scratching the surface compared to its housing requirements. "We recently returned from the 12th World Urban Forum in Cairo, Egypt. What we observed there was inspiring and should motivate us as a nation to do more. The Egyptian government is constructing a New Cairo City, an urban development estimated at 500 billion Egyptian Pounds (around $10.6 billion). This includes massive housing, road construction, shopping malls, rail systems, and more. "While part of the funding comes from entities like the World Bank and IFC, a significant portion is government-sourced through the Administrative Capital for Urban Development (ACUD), the overseeing authority. We also met with India’s Housing Minister, who shared that India has built over 1 million housing units entirely through government funding. "We noted similar large-scale, government-funded housing efforts in South Africa and other African nations. The message is clear: while we will continue to drive PPPs, our government needs to do more to finance affordable and social housing for our citizens," he added. He called on governments at all levels to invest more in housing provision as this was the only way to make housing delivery affordable for low- and middle-income earners, who form the majority of the nation's population. ...
REMARKS BY THE HONORABLE MINISTER OF HOUSING AND URBAN DEVELOPMENT, ARC. AHMED MUSA DANGIWA AT THE MEETING WITH MILLARD FULLER FOUNDATION ON THURSDAY, 7 DECEMBER, 2023 IN ABUJA
Protocols
Good afternoon, ladies, and gentlemen.
1. It is my pleasure to welcome the leadership and staff of the Millard Fuller Foundation, an organization that embodies the spirit of progress and compassion in the realm of affordable housing, to the Federal Ministry of Housing and Urban Development.
2. The mission of the Millard Fuller Foundation resonates deeply with the core values of our Ministry of Housing and Urban Development and the Renewed Hope Vision His Excellency, President Bola Ahmed Tinubu for Quality Housing for All Nigerians.
3. Their commitment to providing truly affordable homes for mid-low-income earners through collaborative partnerships is commendable and inspiring.
4. Like Millard Fuller, we also believe that what we do here does not only lead to the construction of houses, but that we are also helping to build lives and empower communities across Nigeria.
5. We also share in the understanding that a home is not just a structure made of bricks and mortar. It is the cornerstone of stability, the sanctuary of safety, and the conduit to essential amenities. It represents a vital asset that can transform lives, create opportunities, and be the foundation upon which dreams are built.
6. Moreover, their programmatic focus on building basic, decent, and affordable homes for low-income earners aligns perfectly with our ministry's goals.
7. Since my assumption of office, I have made it clear that as a Ministry we must build for the 80 percent of Nigerians that fall within the low to medium income segment. They are in fact the majority. And as Nigerians, every one of them deserve to have access to decent and affordable housing. That is why we set up an Affordable Housing Design Committee with an initial focus of building homes that are organic and with price tags as low as N4M. I am particularly saddened that the possibility of this is fading with the high inflationary trends which are having a negative impact on the price of construction materials.
8. But I have not given up on my charge to our Directors and the Committee on exploring all possible areas to lower the price barrier of homeownership for Nigerians.
9. Relatedly, as part of the Renewed Hope Vision for Urban development, the Ministry plans to upgrade a total of 26 slums in the Six (6) regions of the country, including the Federal Capital Territory. This project would ensure the provision of key infrastructure and ancillary services including access roads, water supply, solar streetlight, drainages, sanitation, and waste management services etc., that would improve the living standards of the slum residents in the project sites and the urban poor in general.
10. We also plan to set up a National Social Housing Fund (NHSF) to ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation.
11. We also plan to boost building materials manufacturing in the country towards ensuring economic growth, creating jobs, reducing dependency on imports, and lowering the cost of construction materials and housing delivery.
12. Our plan is to build six (1) Building Materials Hubs in each geo-political zone in the country. The hubs will be provided with relevant facilities, including access roads, electricity, fit for purpose housing and relevant linkages for manufacturers to site their firms and operate.
13. These are some of our plans that align with the work that Millard Fuller Foundation is doing.
14. And I must say that as a private sector initiative, their work serves as a shining example of what can be achieved when compassion, dedication, and innovation converge. Their collaborative approach, engaging with individuals and organizations, showcases the power of unity in tackling complex societal issues.
15. As we move forward in our quest to ensure housing security and inclusivity for all, I consider a partnership with the Millard Fuller Foundation as necessary. We would like to learn from your lessons in designing and delivering decent but low-budget houses, and how you are innovating in the face of high inflationary trends.
16. Once again, I thank Millard Fuller Foundation for the visit and look forward to further collaboration.
17. Thank you.
KEYNOTE ADDRESS BY THE HON. MINISTER OF HOUSING AND URBAN DEVELOPMENT AT THE 20TH EDITION OF MORTGAGE BANKING SUB-SECTOR CEO’S ANNUAL RETREAT AT THE TRANSCORP HILTON, ABUJA, ON SATURDAY, 2ND DECEMBER 2023
Protocols
1. First, I would like to commend the leadership of the Mortgage Banking Association of Nigeria (MBAN) for sustaining this Annual CEO Retreat.
2. Each year this Retreat provides a platform for CEOs of Mortgage Banks, Mortgage Brokerage Companies, Statutory Regulatory Bodies, Federal and State Governments/Policy Makers and other housing industry stakeholders to gather, network, share experiences, discuss sector challenges to produce clear recommendations that border on effective housing delivery in the country.
3. These Retreats are important because they help in the cross pollination of industry experiences, ideas, and knowledge critical to sharpening government policy on sustainable housing delivery in our dear country.
4. This 2023 edition is the 20th in the series, and I am happy to be here to address you for the first time as the Minister of Housing and Urban Development.
5. However, I am pained to note that the same problems that have been militating against the growth of housing finance, mortgage adoption and housing delivery in this country and have been the points of discussion at every one of the previous 19 editions are the same ones that still plague the sector today.
6. While preparing for this Keynote Address, I recalled a paper titled “Mortgage Banking/Housing Finance Sector in Nigeria: Past, Present and Future” presented by the former MBAN Executive Secretary, Mr. Kayode Omotosho in 2011 – 12 years ago. That was years before I became the MD/CEO of FMBN in 2017 and began attending these Retreats.
7. In the paper he listed the following as the major constraints bedeviling the industry and I quote:
• Affordability gap in home ownership
• Dearth of long-Term Funds
• Critical Need for Enhanced Capital and Resource Base of Primary Mortgage Institutions (PMIs) and the Federal Mortgage Bank of Nigeria (FMBN)
• Difficulty in accessing Land and secure title to Land due to the shortcomings in the provision and implementation of the Land Use Act of 1978.
• Inadequate Legal Framework
• Inadequate Housing Infrastructure
• Inadequate incentives, concessions and taxes and non-availability of insurance Framework
• Insufficient production and high cost of building materials as well as inadequate skilled labour.
• The critical need to significantly grow the contribution of the entire Mortgage Banking/ Housing Finance Sector to the Nation’s Gross Domestic Product (GDP) which was put at 0.38%, compared to other Countries such as South Africa and Malaysia with an average rate of 40%.
Mr. Kayode in that paper went on to list the following key success factors. First was expedited action to review mortgage related laws. This includes:
• The Land Use Act 1978
• The National Housing Fund Act 1992
• The Mortgage Institutions Act 1989
• The Federal Mortgage Bank of Nigeria Act 1993
• The Trustee Investments Act 1962
• The Nigeria Social Insurance Trust Act 1993
• The Insurance Act 2002
• The Investments and Securities Act 1999
• The Federal Housing Authority Act 1990
• Securitization Bill
• Foreclosure Laws Bill (Residential Mortgages Act & Residential Mortgages (Incentives) Act
• Others included the need to reduce cost of title perfection, improving access to long-term funds, computerization of land registry offices, capitalization of Primary Mortgage Banks (PMBs) and the Federal Mortgage Bank of Nigeria (FMBN).
8. Now, fast forward to 2023, and you will agree with me that not much has changed. Most of these problems are still with us. The National Housing Strategy Report developed in collaboration with FMDQs and launched by the previous administration cited just about the same problems. The report lists land, infrastructure deficit, high housing construction cost, household demand (which means the ability to pay and willingness to pay), and lack of affordable housing financing options.
9. It is therefore against the backdrop of these recurring conversations and growing industry challenges that the theme for this year’s Retreat “Advancing Sustainable and Affordable Housing in Nigeria: Navigating Macro-Economic, Legislative, and Policy Frontiers” is so apt.
10. This is because 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.
11. I make bold to say that even in the midst of these persistent challenges, it is possible to make progress. As the MD/CEO of the Federal Mortgage Bank of Nigeria, we were able to innovate despite challenges to post results in five years that surpassed the 25-years before we came on board.
12. I am well aware that the cost of funds is a major macro-economic issue that has made the interest rate on commercial mortgages so high, thereby affecting affordability. This is an issue that reflects the state of the national economy and I want to assure you that the Renewed Hope Vision of His Excellency, President Bola Ahmed Tinubu, GCFR is particular about growing the economy and creating a more friendly environment that would support the growth of the sector.
13. So, while the government works to fix this macro-economic challenge, I still believe that as CEOs of mortgage banks, you can still find creative ways to develop innovative mortgage products that are responsive to the current state of Nigeria’s economic situation. This includes adopting rent to own mortgage options, flexible monthly mortgage loan repayments to make commercial loans more affordable.
14. 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 motive, 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.
15. On the government side, the message that I bring from His Excellency, President Bola Ahmed Tinubu, GCFR, is that he is ready to break the jinx of macro-economic, legislative and policy issues that have held down the growth of effective housing delivery in our country. He is ready to work with all stakeholders including MBAN to implement a holistic housing reform program to chart a new, progressive, and innovative path forward for the mortgage sector.
16. Under the Renewed Hope Agenda of Mr. President, our goal is to ensure that as years go by, we are systematically tackling all these persistent issues and consigning them into the annals of history so that we can ensure increased access to affordable housing for Nigerians.
17. As the Minister of Housing and Urban Development we aim to implement the most historic housing sector reforms the country has ever witnessed.
18. A notable part is the implementation of comprehensive land reforms towards streamlining land administration and ensuring easy, cost effective and efficient access to land in our country.
19. We have composed and secured Presidential consent to inaugurate a land reforms team comprising state governments, traditional rulers, relevant agencies, professional bodies, academia, industry experts to ensure buy-in and inclusivity.
20. With their recommendations we will draft an Executive Bill and proceed to the National Assembly for the amendment of the obsolete Land Use Act 1978 that has hindered the development of the housing sector.
21. In line with our policy of building on existing knowledge so we can move at a faster pace to deliver value, we recently invited and met with the Presidential Technical Committee on Land Reforms. And I must say that it was a wise decision to do so. This is because we now have access to the comprehensive work, they have done over the past 14 years on Land Reforms in our country. Immediately after the meeting we set up an Internal Ministerial Committee to review and recommend for inclusion in our land reforms strategy relevant parts of their recommendations. Part of this will be the establishment of the National Land Commission to spell out the guidelines and regulations for operationalizing the Land Use Act, 1978.
22. Currently, we have a situation where the Land Use Act was enacted but there was no complementary institution set up alongside it to provide the necessary framework, guidelines, and regulations for operationalizing it.
23. This will improve land titling and boost Nigeria’s ranking on the World Bank Ease of Doing Business where we currently rank 186th out of 190 countries.
24. The second related reform is the nationwide adoption of the Model Mortgage Foreclosure Law. The law is a housing industry stakeholder initiative that is focused on establishing an enabling environment for investment in real estate and the growth of mortgages. It provides contemporary provisions on the creation, registration, and enforcement. I must recognize and commend the critical role that MBAN has played in this regard.
25. As of date, the Model Mortgage Foreclosure Law (MMFL) has been passed in only four (4) States, including Lagos, Kaduna, Ekiti, and Nasarawa States. We aim to drive its passage in all the states of the federation as part of the efforts to ensure that investments in the housing and mortgage sector are protected.
26. We have also composed and secured presidential consent to inaugurate a Housing Institutions’ Reform Team comprising relevant agencies of Government, Professional/Regulatory Bodies, Academia, and Industry Experts to review some aspects of the existing laws listed below to align them with contemporary realities.
• The Land Use Act, 1978.
• National Housing Fund (NHF) Act, 1992.
• Federal Mortgage Bank of Nigeria (FMBN) Establishment Act, 1993.
• Federal Housing Authority (FHA) Act 1973.
• PenCom Act (to allow for increased investment in housing development); and
27. I am happy to say MBAN has been included in the membership of our Reform Teams.
28. The reforms and legislative amendments that the Housing Institution’s Reform Team will execute in collaboration with stakeholders and the National Assembly will be the most comprehensive set ever done in the history of Housing and Urban Development in Nigeria.
29. We are also working to boost building materials manufacturing in the country. This will ensure economic growth, create jobs, and reduce dependency on imports. On this too, we have composed a Building Materials Manufacturing Task Team comprising of experts and representatives from relevant government agencies, academia, professional bodies, and industry experts. They will conduct a thorough assessment of the current state of the building materials manufacturing sector and produce a strategic reform plan for implementation.
30. To increase the stock of housing supply, we have also composed and will inaugurate a Multi-Agency Project Delivery Team. The Team will ensure that all housing agencies work together towards optimizing their capacities to deliver decent and affordable housing to Nigerians. It comprises highly qualified and experienced professionals with expertise in housing development, urban planning, infrastructure, finance, and project management.
31. Our Renewed Hope Cities and Estates Program seeks to deliver 40,000 housing units ranging from 1,000 housing units per site in one location in each of the six geo-political zones of the country and FCT namely: Abuja, Lagos, Kano, Borno, Nasarawa, Rivers, and Enugu States. House types will include Multi-Level Flats to cater to low-medium income earners, Terrace and Detached Bungalows and Duplexes for the high-income earners. We will also have Renewed Hope Estates of 500 housing units per site in each of the remaining thirty (30) States. House Types include 1,2- and 3-bedroom affordable units.
32. The projects will be financed by the Federal Ministry of Housing and Urban Development’s budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and majorly through Public Private Partnerships with reputable developers. Ownership Options include Mortgage Loans, Rent-to-Own and Outright Purchase.
33. We are also working to comprehensively upgrade our slums and embark on urban renewal. Under Phase 1 of the Slum Upgrading Programme, the Ministry plans a total of 26 sites nationwide. This includes four (4) sites in each of the six regions of the country totaling twenty-four (24) and two (2) in the FCT. The key services to be provided at the identified sites will include water supply, solar streetlights, rehabilitation of access roads, construction of drainages and waste management and sanitation services amongst others.
34. It is important for me state that MBAN will be part of the offtake solution for these housing units at two levels. One as partner banks to the FMBN as retail outlets for NHF loans and as a partner to explore other commercial mortgage financing options especially through the capital market.
35. Like I said earlier, as the Minister of Housing and Urban Development, I will continue to work closely with MBAN towards ensuring that all the issues that affect the development of the sector receive the highest consideration and treatment. I look forward to receiving the communique on the important resolutions and recommendations from this Annual Retreat for review and possible inclusion in our housing reform strategy.
36. Together we can make progress. Together we can break barriers and unleash the potential of the housing market for economic and social transformation in Nigeria.
37. I wish you all fruitful deliberations.
38. Thank you.
MINISTER ARCH AHNED DANGIWA AND MINISTER OF STATE, RT HON YUSUF ATA IN A GROUP PHOTOGRAPH WITH NUJ FCT CHAIRPERSON, GRACE IKE & MEMBERS OF HER TEAM DURING A COURTESY VISIT TO THE FMHUD.
Minister Arch Ahned Dangiwa and Minister of State, Rt Hon Yusuf Ata in a group photograph with NUJ FCT Chairperson, Grace Ike & members of her team during a courtesy visit to the FMHUD.
FMHUD LAUNCHED DISPATCH RIDER SERVICE: DIRECTOR HUMAN RESOURCES, DR. ADESINA AKINOLA SUPPORTED BY DIRECTOR FINANCE , DIRECTOR PRESS, DIRECTOR OPS AND HEAD REFORM & SERVICE IMPROVEMENT LAUNCHED A NEW DISPATCH RIDER SERVICE TOWARDS ENHANCING EFFECTIVE SERVICE DELIVERY, COMMUNICATION AND OPERATIONAL LOGISTICS.
FMHUD launched Dispatch Rider Service: Director Human Resources, Dr. Adesina Akinola supported by Director Finance , Director Press, Director OPS and Head Reform & Service Improvement launched a new dispatch rider service towards enhancing effective service delivery, communication and operational logistics.