The Federal Government has announced its intentions to tap into more than $300 billion of dormant capital within the housing sector by implementing a series of reforms in land administration and fostering collaborations with various stakeholders.
During a two-day capacity-building conference organized by the Real Estate Developers Association of Nigeria in Abuja, the Minister of Housing and Urban Development, Ahmed Dangiwa, shared that these reforms are part of the government’s initiatives to promote investment and financing opportunities for sustainable real estate projects while addressing the housing deficit in the country.
It’s worth noting that PricewaterhouseCoopers recently reported that Nigeria possesses anywhere between $300 billion and $900 billion of untapped capital in residential real estate and agricultural land.
Minister Dangiwa, represented by Minister of State Abdullahi Gwarzo, affirmed his ministry’s commitment to dismantling longstanding institutional, legal, and bureaucratic barriers that have historically impeded the growth of the housing sector.
He outlined plans to amend the Land Use Act to streamline land administration and also highlighted reforms for key agencies like the Federal Mortgage Bank of Nigeria and the Federal Housing Authority.
The government’s dedication to promoting private housing investment was emphasized.
Minister Gwarzo stated, “In line with President Bola Ahmed Tinubu’s vision, we are fully devoted to creating a conducive environment for increased private sector investment in housing.
This involves working closely with key stakeholders to revise and streamline the Land Use Act for easier and faster access to land.
We acknowledge that one of the most significant challenges in affordable housing is the high cost of finance, with double-digit interest rates on bonds and difficulties in securing international funding for housing projects due to foreign exchange rate fluctuations.
Moreover, budgetary financing for housing development falls short of meeting the demand.
Our primary objective is to eliminate the institutional, legal, and bureaucratic obstacles that have hindered the growth of this sector for years.
This includes collaborating with key stakeholders to review and amend the Land Use Act to facilitate efficient land administration.
We aim to unlock the estimated $300 billion in dead capital, as reported by Price Waterhouse Coopers. Additionally, we are diligently working on reforms for key agencies under the Ministry’s purview, namely the Federal Mortgage Bank of Nigeria and the Federal Housing Authority.”
Aliyu Wamakko, President of REDAN, in his opening remarks, encouraged members to adhere to existing laws in order to contribute to the national economy and expressed the association’s support for the government’s initiatives regarding affordable and accessible housing.
