The Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi advocated for private sector funding in the supply of affordable housing.
Osidi made this remark in his paper titled “The Place of Affordable Mortgages and Private Sector Operations in Catalysing Housing Demand and Supply” delivered
at the 2024 Annual lecture and awards ceremony of the Property and Environment Writers Association of Nigeria (PEWAN) with the theme,’ Resolving the Financial and Regulatory Dilemma to Achieve Renewed Hope Agenda on Housing’ held in Lagos.
Represented by Oladapo Fakeye, Group Head Strategy FMBN, Osidi said “In Nigeria we are faced with a huge population estimated at over 200 billion growing at about 2.52% per annum, the high urban-rural ratio of about 50% also growing at an astronomical rate of 4.3% per annum, and perennial unfavourable regulatory and macroeconomic factors. The combination of these unfortunate circumstances has resulted in a significant housing gap estimated at millions in the double digits.”
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He cited the 2019 PwC study, which noted that about 75 percent of the nation’s estimated 42 million housing stock falls below the United Nations criteria for permanent human occupation.
In addition, he said, the nation’s dismal record of untitled land implies that about $300 billion, roughly 60 percent of national GDP is ‘dead capital’ as the owners cannot realise tangible earnings or utilise the assets to improve their economic status.
On his part, Minister of Housing and Urban Development, Ahmed Musa Dangiwa, has said the federal government is on the verge of launching the National Social Housing Fund (NSHF).
According to him, the initiative is carefully designed to ensure that all Nigerians, including the vulnerable and underprivileged groups, have access to decent and dignified accommodation.
Dangiwa, represented by the director of Press and Public Relations, Federal Ministry of Housing and Urban Development, Salisu Badamasi Haiba, said the initiative is in line with President Bola Tinubu’s Renewed Hope Agenda to ensure that all Nigerians, including the LOW AND NO INCOME, vulnerable and underprivileged groups have access to decent and dignified accommodation.
“We are completing a memo to the Federal Executive Council (FEC) and an Executive Bill to the National Assembly to create a National Social Housing Fund. Potential funding sources include budgetary provision, donations from philanthropic organisations, Corporate Social Responsibility and voluntary contributions from Nigerians,” he said.
Harping on other initiatives to achieve its objectives through the Renewed Hope Cities and Estates Programme, he added that the ministry currently has 14 active construction sites nationwide for 10,112 housing units.
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