New homes and jobs are on the way for Nigerians as the Federal Ministry of Housing and Urban Development has signed an agreement with a consortium of private sector-led companies to build affordable housing across the six geo-political zones of Nigeria.
The housing project which promises to deliver 100,000 housing units is expected to create 2.5 million jobs that will help to lift as many Nigerians out of poverty in line with the federal government’s vision.
The pact with the consortium headed by Continental Civil and General Construction Company Limited and Ceezali Limited, heralds renewed attention to Public Private Partnership (PPP) arrangements which the ministry has made a major part of its housing delivery strategy.
The partnership, according to housing ministry officials, is part of the government’s continuing effort at leveraging private-sector collaboration towards bridging the housing deficit in the country estimated at 28 million units.
In the estimation of the officials, the MOU marks a milestone for the Ministry’s Action Plan in relation to its Renewed Hope Cities and Estates projects. The new project is to be delivered in two phases, starting with 20,000 units in the Federal Capital Territory and followed by 80,000 units across the six geopolitical zones.
Ahmed Dangiwa, Minister of Housing and Urban Development, noted that the MOU was the result of months of hard work and strategic planning resulting in a robust framework to ensure the PPP arrangement was structured to succeed.
“Under the terms of this partnership, the consortium will be the ones to provide construction finance and build the housing units to completion based on agreed housing designs and prices.
“The ministry, on its side, will facilitate the provision of affordable mortgage loans to off-takers through the Federal Mortgage Bank of Nigeria (FMBN), as well as facilitate the approval and grant of all legal titles in select lands for the projects as part of efforts to create an enabling environment for private sector investment in the housing sector”, he noted.
Acknowledging the housing crisis in Nigeria and the inadequacy of budgetary allocations to address the deficit, Dangiwa emphasised the need to see increased access to decent and affordable housing as a collective endeavour, requiring the active participation of all stakeholders across the entire housing value chain.
“These partnerships enable leveraging the strengths of both the public and private sectors, fostering innovation, efficiency, and increased access to funding. Our long-term goal is to address the housing shortage and enhance the quality of life of our citizens”, he added.
The Minister further touched on the job creation aspect of the project, noting that it is in line with the vision of the federal government to raise 100 million Nigerians out of poverty. Notably, the PPP arrangement will create 2.5 million direct and indirect jobs at 25 jobs per housing unit.
He asked the consortium to continuously engage the technical staff of the ministry in siting, designing, monitoring, and cost evaluation of the project while urging them to ensure the delivery of the project within the agreed time and budget.
Consultant for the consortium and Principal Partner of C23 Consultants Limited, Damola Akindolire, noted that the PPP arrangement is the first of its kind in Nigeria, in respect of the scale and scope of the project. He added that the MOU speaks to the focus and seriousness of the leadership of the ministry to address the housing deficit in Nigeria.
On their part, Executive Director of Continental Civil and General Construction Company Limited, Alamu Adegbenga and Contract Manager of Ceezali Limited, Sule Wada, assured the minister of their technical and financial capacities to deliver on the project based on their track record and experience.