Nigeria’s Housing Ministry Aims to Generate N300 Billion from House Sales:
Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa, has projected a revenue generation of N300 billion within two years from the sale of houses developed under various ministry initiatives. During a briefing to the Senate Committee on Lands, Housing, and Urban Development, Dangiwa highlighted the ministry’s potential for significant revenue generation, contingent on receiving a N500 billion budgetary allocation. He emphasized that the Senate Committee recognized the ministry’s substantial efforts and advocated for increased funding. The anticipated revenue would be generated primarily through the sale of housing units developed under various ministry programs, including the Renewed Hope Cities and Estates, and through public-private partnerships with developers.
Renewed Hope Cities and Estates Project Takes Center Stage:
A key focal point of the ministry’s housing development strategy is the Renewed Hope Cities and Estates program. Dangiwa revealed plans to deliver 1,000 housing units by the end of the year, with the remaining units scheduled for completion by mid-next year. These units are part of a larger project aiming to construct 100,000 housing units nationwide, with 20,000 allocated to Abuja. The pilot phase of this project, located in Karsana, Abuja, will comprise 3,112 housing units and serve as a model for subsequent developments across the country. The ministry is collaborating with a consortium of developers who are responsible for securing financing, acquiring land, and identifying buyers.
Public-Private Partnerships and Slum Upgrade Initiatives:
The ministry is actively engaging in public-private partnerships to accelerate housing development. Dangiwa cited the partnership with Karsana developers as an example, which aims to construct 3,112 housing units. Additionally, the ministry is undertaking slum upgrade and urban renewal projects across 28 sites in the country, with many nearing completion. These initiatives are integral to the ministry’s comprehensive approach to addressing housing needs and improving urban living conditions. The combination of public funding and private investment aims to maximize the impact and reach of these projects.
Financial Mechanisms and Oversight:
The ministry has implemented financial mechanisms to support the housing projects, including providing bankable off-taker guarantees to developers, enabling them to access funding. Developers utilize various sources, including Family Homes Funds, to finance construction. To ensure transparency and accountability, a steering committee, comprising ministers, the permanent secretary, and developers, oversees the projects. A separate monitoring committee, including officials from the ministry, Federal Mortgage Bank, Family Home Funds, and developers, conducts weekly project monitoring. This two-tiered oversight structure ensures that projects adhere to timelines, quality standards, and financial regulations.
Senate Committee Oversight and Budgetary Considerations:
The Senate Committee’s visit marked the commencement of oversight activities for the 2023 supplementary and 2024 budgets. Committee Chairman Aminu Tambuwal affirmed the committee’s constitutional mandate to oversee the activities of ministries, departments, and agencies. The visit included site inspections to assess the implementation of appropriated funds. Tambuwal expressed support for increased funding for the housing ministry, recognizing the sector’s potential to contribute to wealth distribution across all socioeconomic levels. The committee’s focus on budgetary transparency and adherence to regulations underscores the importance of responsible public spending.
Comprehensive Documentation and Future Outlook:
Minister Dangiwa presented extensive documentation to the Senate Committee, detailing the ministry’s activities, budget performance, implementation plans for various programs, and a list of federal government properties under the ministry’s control. This comprehensive reporting provided the committee with a detailed overview of the ministry’s operations and financial management. The ministry’s proactive approach to transparency and accountability reinforces public trust and strengthens the foundation for future projects. With the anticipated budgetary increase and the ongoing projects, the Ministry of Housing and Urban Development is poised to make significant strides in addressing Nigeria’s housing challenges.
