• Monday, June 24, 2024
businessday logo


With new fund, FG plans decent housing scheme for Nigerians

Edo engages 4 developers to construct 700 houses units

The federal government on Friday announced plans to set up a National Social Housing Fund (NSHF) that will deliver access to decent shelter to all Nigerians, no matter the social or income status.

The fund for the project will be sourced through a stream of income, including Gains from the removal of fuel subsidy; Profit after tax from pension fund administrator investments; contributions from corporate bodies and institutions as part of their corporate social responsibility; Public private partnerships; International donor support; as well as Government allocation, amongst others

Ahmed Dangiwa, the Minister of Housing and Urban Development announced this in Abuja at the ministerial sectoral briefing marking the administration’s first year of Tinubu’s administration.

“To ensure that all Nigerians including the NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation, we are also creating the framework for the establishment of a National Social Housing Fund (NSHF).

“This is because we believe that access to decent shelter is a not only a necessity but a human right and that all Nigerians across all income segments deserve a decent home to live and grow,” Dangiwa stated.

He also announced that a total of 3,500 housing units are set to be developed, spanning 12 states and 3 cities.

This initiative, according to him marked a significant step towards improving housing availability and fostering economic growth in these areas.

“Currently, housing developments are underway in 12 states, with estates in Katsina, Yobe, Gombe, Abia, Nasarawa, Benue, Akwa Ibom, Delta, Sokoto, Oyo, and Osun, and cities in Abuja, Yobe, and Lagos.

“Contractors have started work on delivering 3,500 housing units, and a memorandum of understanding with developers aims to build an additional 100,000 units nationwide. With 3,112 units already under construction through public-private partnerships, the total number of units under development is 6,612”, Dangiwa stated.

The project is expected to provide substantial employment opportunities and stimulate local economies, while also contributing to the overall infrastructure development.

Dangiwa highlighted the launch of the Renewed Hope Cities and Estates Development Programme, which aims to deliver 50,000 housing units across Nigeria in its first phase.

“The programme features 1,000-unit cities in each of the six geopolitical zones and the Federal Capital Territory (FCT), as well as 500-unit estates in the remaining 30 states.

“These integrated living communities will offer a range of housing options from one-bedroom flats to five-bedroom duplexes, catering to all income brackets”, he stated.

He further disclosed that for low- and medium-income earners, the Renewed Hope Estates will provide semi-detached bungalows with flexible designs that can be expanded as the occupants’ incomes increase.

“To enhance affordability, the programme offers various ownership options, including single-digit interest mortgages up to 30 years, rent-to-own schemes, and outright purchase options for higher-income earners” he said.

The Federal government, as disclosed by the minister has allocated N126.5 billion from the 2023 supplementary and 2024 budgets for these projects, which include slum upgrades and urban renewal.

Cross-subsidy mechanisms are being implemented to ensure affordability, particularly for members of the Nigeria Labour Congress and the Trade Union Congress.

Housing units in Renewed Hope Cities will be sold at commercial rates, with a significant portion offered at concessional rates to low- and medium-income Nigerians.

Dangiwa emphasized the economic benefits of the housing programme, noting that the construction of the 50,000 units in Phase 1 is expected to generate 1.25 million direct and indirect jobs, boost local businesses, and attract investment.

Additionally, the Ministry’s 2024 budget includes plans for another 1,500 units in six more states.

To streamline the home acquisition process, the Ministry has launched an Online Housing Portal, facilitating easier access to homes built under the Renewed Hope Cities and Estates Programme.

This comprehensive housing initiative, according to him, underscored the administration’s commitment to reducing social inequality and fostering economic growth by ensuring that every Nigerian has a decent place to live.