FG to recapitalise FMBN with N500bn for sustainable housing development
Story from Idris UMAR, Zari
The federal government is working to increase the capitalisation of Federal Mortgage Bank of Nigeria (FMBN) to 500 billion naira for sustainable housing development.
Minister of Housing for Urban Development, Alhaji Ahmad Dangiwa, stated this at the Maiden Kaduna International Housing Exhibition 1.0 with the theme “Kaduna Sustainable Housing Development, a Model for Northern Housing Reforms, held in Kaduna.
Alhaji Dangiwa explained that recapitalising the bank would give it more financial power to ensure sustainable housing initiative.
According to him, statistics have shown that almost half of Nigeria’s population, of over 201 million, are poor and have week purchasing power.
“In fact, of the 43 million households, over 85 per cent have less than 1.1 million purchasing power.”
Alhaji Ahmad Dangiwa further revealed that the Federal Ministry of Housing and Urban Development is working to establish a National Social Housing Fund to pull fund from government budget, philanthropic organisations and well meaning Nigerians towards providing decent shelter for Nigerians within the no income, low income and vulnerable brackets who cannot afford to own their homes.
“We have developed the concept note that is undergoing review. Once concluded, we will present it to the Federal Executive Council (FEC) for approval and legislation”
Tte Minister further stated that statistics revealed that less than 10% of land in Nigeria is registered while 90% of the land is unregistered.
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“Because of the law rate of formalisation, land in our country has limited earning capabilities as an asset and as a securitised commodity.
“According to PWC, these unrealised earnings (also known as dead capital) are estimated to be more than $300 billion, which is over 60% of Nigeria Gross Domestic Product.”
In a remark, Kaduna State Governor, Malam Uba Sani noted that provision of affordable houses for Kaduna State citizens was a key priority of his administration and committed to addressing the housing deficit across the State in line with President Bola Tinubu’s Renewed Hope Agenda.
Represented by his deputy, Dr Hadiza Balarabe, he revealed that the Kaduna State Government had adopted a holistic approach towards filling the identified gaps through partnership with local and international investors.
“Qatar Charity, in partnership with the Kaduna State Government, is constructing Mass Housing for the less privileged and Kaduna Economic City, all in Millennium City, Kaduna
“I recently performed the groundbreaking for the construction of the 3319 Hectares Nuru Suraj Ungwar Dosa New Extension Layout.
“This project is being executed through a Public – Private Partnership. Nuru Suraj and Kaduna State Government are working together to develop 35,000 plots for our people.
“The Social Housing Scheme was introduced in order to provide affordable
accommodation as a social service for the vulnerable populace (the low income earners).
“Efficient design and construction methods, which are key indicators that drive the affordability target of the scheme, were employed.
“Kaduna State has attracted many investors (Real Estate Developers) and has partnered with them in the construction of mass housing estates across Kaduna metropolis under PPP arrangement.
“Government provides unencumbered land to the developers and facilitates all approvals and permits free of charge,” he said.
Malam Uba Sani called on local and International Investors to avail themselves of the huge opportunities in the housing sector in the state.
“We extend not just an invitation, but a steadfast guarantee that your investments in Kaduna State will be nurtured by a robust policy framework and unwavering support,” the governor assured.
According to him, the International Housing Exhibition would afford the state the opportunity to showcase affordable and sustainable housing projects of the federal and Kaduna State governments as well as showcasing innovative housing solutions and technologies.
Senator Uba Sani pointed out that the event also offered a unique platform for stakeholders to discuss and share housing development initiatives, explore emerging technologies, and proffer practical solutions to Northern Nigeria’s housing challenges.
He said all stakeholders must work to address housing deficits as a deliberate effort to restore it collective dignity.
Earlier, the Speaker of the House of Representatives, Alhaji Abbas Tajudeen, disclosed that the maiden Kaduna International Housing Exhibition holds immense importance to the people of Kaduna State and the country at large.
Represented by the Chairman, House Committee on Housing, Alhaji Abdulmumini Jibrin, said it was imperative for all stakeholders to work together to ensure that every individual has access to safe, affordable and dignified housing which required multifaceted approach to increase the supply of affordable housing.
Critical stakeholders on housing attended the exhibition, including traditional rulers, among others.