AS part of government efforts to promote integrated and functional communities, the Federal Government plans to build 34,500 houses for all Nigerians across the country.
The project known as the Renewed Hope Cities will promote inclusivity and have different phases. Phase one aims to deliver 34,500 housing units in a mix of one, two and three-bedroom affordable bungalows in 30 states.
The multi-level flats are expected to cater to low-medium income earners, while terrace, detached bungalows and duplexes for the high-income earners in select state capitals including Lagos, Kano, Borno, Nasarawa, Port Harcourt, Enugu, and the Federal Capital Territory (FCT).
Additionally, to ensure affordability and quick off take of the houses by Nigerians, the Ministry of Housing and Urban Development, the promoters has outlined a mix of ownership options for potential beneficiaries. This includes leveraging the Federal Mortgage Bank of Nigeria (FMBN) to enable beneficiaries to access single mortgage loans payable over 30 years.
The ministry plans using the FMBN National Housing Fund (NHF) mortgage loan window, Primary Mortgage Banks, and the mechanism of the Nigeria Mortgage Refinance Company (NMRC) to enable beneficiaries who desire homes that are beyond the range offered by FMBN to access home loans at commercial rates.
MEANWHILE, the Minister of Housing and Urban Development, Ahmed Dangiwa, who confirmed the development during the visit of the Governor of Taraba State, Dr. Agbu Kefas, said the ministry has written letters to all state governors seeking about 50 hectares of land for the Renewed Hope Cities project.
He said off-takers will be encouraged to own the homes using the FMBN Rent-to-Own housing product, which allows contributors to the NHF scheme to move into a home without equity payment and pay towards ownership over a maximum of 30 years depending on their age.
“To increase affordability, we are also exploring Public Rental where Nigerians who cannot afford to own their homes can rent housing units and pay on a monthly basis. They will also have an option to own the houses when their incomes improve.
“With the above affordability mix, Nigerians within the low- and medium-income brackets will have a wide range of convenient homeownership options to choose from to own their homes,” he said.
Dangiwa said: “We aim to deliver 34,500 homes from a mix of sponsors, comprising the Federal Ministry of Housing and Urban Development’s budgetary allocation, the Federal Mortgage Bank of Nigeria (FMBN), and through Public-Private Partnerships with reputable developers.
“We plan to partner the private sector developers to sell the high-end buildings at commercial rates so we can apply the profits towards reducing the cost of the units targeting low-income earners.”
To deliver this, he said the ministry needs the support of state governors in accessing free land as their contribution to the government’s plans to deliver affordable housing to all segments of the population.
‘With this project, we will create over 240,000 jobs at seven persons per housing unit. This is in line with the Bola Tinubu administration’s goal to create jobs, lift 100 million Nigerians out of poverty, and grow the economy. To do this, we would need access to land at no cost from state governments. Land is a major component of housing cost, so by giving us land, we would be ticking off a huge cost that will make it possible for the ministry to deliver the houses at a price that Nigerians can afford,” he added.
The minister also noted other areas requiring the support of the governor to include the reform of the Land Use Act, the passage and adoption of the foreclosure law, and setting up of mortgage laws.
Earlier, Kefas commended the minister for the bold housing plans, saying that they fit into his state’s vision for inclusive and sustainable development.
“We are confident that the Renewed Hope Cities will not only create much-needed housing solutions but also generate significant employment opportunities for our people. Taraba State is ready to collaborate in every possible way to ensure the success of this project, bringing us one step closer to realising the dream of adequate housing for all Nigerians, “he said added.
