Mass housing project to commence across states – FG

FEDERAL Government is set to
embark on mass housing project
in all states of the federation to
bridge the housing deficit in the
country. The Agency reports.
Minister of State, Power, Works
and Housing, Mustapha Shehuri,
disclosed this on Thursday at
the first Real Estate Developers
Association of Nigeria, REDAN
building Expo in Abuja.
Shehuri said that the Federal
Government would continue to
engage stakeholders in its quest
to reducing the housing deficit in
the country.
“Government is more than ever
willing to rejuvenate the housing
sector, hence the resolution to
increase the share capital of the
Nigeria’s Mortgage Banks to
N500 billion.
“The government intends to
build mass housing in all states
of the federation and would
collaborate with REDAN in this
regards,’’ he said.
The minister commended
REDAN for the expo,
emphasising the journey to
revamp the economy by focusing
and investing in the real estate
sector for economic revitalisation.
He called on other bodies to
organise similar expo that would provide ideas to bring the desired
level of transformation in the sector.
Speaking at the event, the
President of REDAN, Ugochukwu
Chime, said that the expo was
a way of bringing stakeholders
together to discuss possible ways
of contributing to the economic
growth of the country via real
estate.
He said that it has been accepted
globally that housing was about
employment generation, economic
growth and shelter provision in that
order.
“Undoubtedly, investing in
housing has been a fulcrum to
reversing economic downturn in
most climes.
“In times like this in the history
of our country, it behoves on all
that hands must be on deck to
collectively replicate what other
economies used to turn around
their dwindling fortunes, thus
bringing it back to prosperity,”
Chime said.
He noted that the challenge
to reduce the housing deficit in
Nigeria and using it as a formidable
tool for employment generation
and inclusive economic growth
could be attained only when
stakeholders worked together.
According to him, the focus of
REDAN has been on making land
and finance available as a way of
achieving affordable housing for
all.
“We need to design a new and
sustainable funding approach for
housing construction finance in
Nigeria, and networking with all
relevant stakeholders to produce,
execute and continue a seamless
transaction value chain for both
construction and off-taker finance,’’
he said.
He explained that the housing
sector held the key to reducing the
present high unemployment rate,
especially youth unemployment.
“We propose that for every
20 units of housing in any
community, the developer should
give formal artisanal training to
one youth from that community,’’
he added.
Charles Inyangete, Managing
Director, Nigeria Mortgage
Refinance Company, NMRC
presented a paper entitled: `The
Housing Deficit, Challenges,
opportunities and strategic
Imperative.
”Inyangete said that the cost
of housing could be reduced
to between 20 and 50 per cent
by unlocking land at the right
location and reducing financing
costs for buyers.
He explained that it was
estimated that the cost of housing
could also be reduced by 30 per
cent by providing infrastructure
such as roads, water, drainage,
electricity among others.
He said that the 30 per cent
reduction in housing cost due
to infrastructure savings would
improve affordability by a factor
of 42.85 per cent.
According to him, the housing
sector has the potential to enhance
sustainable economic growth and
contribute significantly to GDP.