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

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

Ministry of Housing and Urban Development Engages Un-Habitat on Funding, Technical Support for Nationwide Urban Renewal and Slum Grading Projects   The Federal Ministry of Housing and Urban Development has expressed commitment to deepening partnership with the United Nations Human Settlements Programme (UN-Habitat) towards mobilizing multi-lateral funding and technical support for planned Nationwide Urban Renewal and Slum Upgrading Program under the Renewed Hope Agenda of the government. The program aims to improve living conditions in Nigeria’s urban areas and transform informal settlements into vibrant, integrated neighborhoods with access to essential services, while preventing the proliferation of slums.   Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa stated this during a meeting with a delegation of UN-Habitat, led by the Director, Regional Office for Africa, Oumar Sylla, at the Ministry’s headquarters on Thursday October 19, 2023 at the nation’s capital, Abuja.   The Minister observed that UN-Habitat’s new vision of “a better quality of life for all in an urbanizing world” aligns fully with the Renewed Hope Agenda of His Excellency President Bola Ahmed Tinubu, GCFR, for Housing and Sustainable Urban Development, and called on the body to support the bold plans of the ministry to increase access to decent, quality, and affordable housing for all Nigerians, including those that fall within the low and medium-income segments of the country.   “We are counting on UN-Habitat to continue to render its technical support to the ministry as the focal point for the implementation of Sustainable Development Goal 11, which aims to make our towns and cities safe, resilient, and sustainable.   “Additionally, we would like to seek UN-Habitat’s collaboration in advancing the SDGs. Specific areas include helping us to mobilise multilateral funding for our Urban Renewal and Slum Upgrading Programme and the New City Development Project”, he said.   Speaking further, Dangiwa appreciated UN-Habitat for assisting with the review of the National Urban Development Policy (NUDP) and assured of the ministry’s commitment to complete and adopt the document with the technical support of the organization.   He further called for deepened collaboration between the ministry and UN-Habitat, noting that the meeting should mark a new, bolder, innovative, and more impactful partnership between the two parties; one that will see the ministry explore all the potentials and capacities of UN-Habitat to help achieve the Renewed Hope Agenda of President Bola Ahmed Tinubu.   “I am impressed with your strategic plan for the period 2020-2023. In it, I see several points of intersection with the Renewed Hope Agenda of our government. This includes reduced spatial inequality and poverty in communities across the urban-rural continuum; enhanced shared prosperity of cities and regions; strengthened climate action and improved urban environment; as well as effective urban crisis prevention and response”, Dangiwa added.   Also discussed at the meeting was Nigeria’s $250,000 annual funding support to the UN-Habitat Support Office (UN-HAPSO) in Nigeria. The Minister assured the delegation of Nigeria’s commitment to fulfilling its obligations and has already set in motion the process to pay its statutory contribution to UN-Habitat, which was delayed due to the transition to a new administration in the country. He further stated that continued funding support to UN-Habitat’s office in Nigeria will reposition the office to adequately play its role in providing technical support services to housing and urban development stakeholders in the country.   The visit of UN-Habitat’s delegation comes as the ministry continues to unveil plans to make affordable homeownership accessible to more Nigerians, while also building sustainable cities and upgrading slums in the country. The intention of the ministry is to leverage the partnership with UN-Habitat to foster speedy and sustainable implementation of its plans for housing and urban development.   Arc. Dangiwa, therefore, called for series of future engagements with UN Habitat so that the activities and programmes mapped out in any future work plan will align with the priorities of the current administration of President Bola Ahmed Tinubu, GCFR, as mandated to the Federal Ministry of Housing and Urban Development.   Responding, Oumar Sylla, the leader of the delegation, assured the Honourable Minister that the 2023-2027 work plan of the UN-Habitat for the country will definitely be aligned with the priorities of the Renewed Hope Agenda of the current administration. About UN Habitats: The United Nations Human Settlements Programme (UN-Habitat) is mandated by the UN General Assembly to promote socially and environmentally sustainable towns and cities. UN-Habitat is the focal point for all urbanization and human settlement matters within the UN system.   UN-Habitat works with partners to build inclusive, safe, resilient, and sustainable cities and communities. UN-Habitat promotes urbanization as a positive transformative force for people and communities, reducing inequality, discrimination, and poverty. ...