The Federal Government through the Ministry of Housing and Urban Development has unveiled plans to build Renewed Hope Cities Nationwide as part of government efforts to promote integrated and functional communities in Nigeria.
The Renewed Hope Cities will have inclusivity at their core. Phase 1 of the project aims to deliver 34,500 housing units in a mix of 1, 2-, and 3-bedroom affordable bungalows in Nigeria’s thirty (30) states; multi-level flats to cater to low-medium income earners and terrace and 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).
This was disclosed by the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa when he received the Executive Governor of Taraba State, His Excellency, Dr. Agbu Kefas, at the Ministry’s Headquarters in Abuja on Thursday.
Speaking on the plans, the Minister espoused a multi-agency approach and private sector-led approach to delivering the project: “Overall, we aim to deliver under phase 1 of this project, a total of 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.”
Additionally, he said that to ensure affordability and quick offtake of the houses by Nigerians, the Ministry has outlined the following 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 using the FMBN 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.
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“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” he added.
The Minister also said off-takers will also be encouraged to own the homes using the FMBN Rent-to-Own housing product which allows contributors to the National Housing Fund (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,” he added.
“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.
To deliver this, the Minister said the Ministry will need 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.
“In our plan to deliver the Renewed Hope Agenda for Housing, one major area where we seek your support and collaboration is the provision of land. With this project alone, we aim to create over 240,000 jobs at 7 per housing unit. This is in line with Mr. President’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 including the reform of the Land Use Act, the passage and adoption of the foreclosure law, and the setting up of mortgages.
In his remark, the Executive Governor of Taraba State, Dr. 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 realizing the dream of adequate housing for all Nigerians. Once again, I commend the Ministry and assure you of our support in this laudable housing delivery plan,” Dr. Kefas added.
Source: AfricaHousingNews
