View Real Estate as a Central Pillar for Economic Revitalization, Advocates Dr. Wamakko
The Minister for Housing and Urban Development, Arc. Ahmed Musa Dangiwa, emphasized that real estate development extends beyond the construction of buildings; it serves as a catalyst for economic progress and social development. He acknowledged that the real estate sector has the potential to create jobs and enhance the quality of life for people.
During the opening of a two-day seminar organized by the Real Estate Developer's Association
of Nigeria (REDAN), the minister, represented by Minister of State Abdullahi Gear, highlighted the Renewed Hope Agenda of President Bola Ahmed Tinubu, which places housing as a key priority. The government believes that the housing sector can play a crucial role in lifting 100 million Nigerians out of poverty, generating employment opportunities, and fostering inclusive growth. He stressed the need for collaborative efforts between the public and private sectors to achieve this goal.
Arc. Ahmed Musa Dangiwa also pointed out that affordable housing faces significant challenges, primarily due to the high cost of finance. Double-digit interest rates on bonds, difficulties in raising international funding due to foreign exchange rate fluctuations, and inadequate budgetary financing for housing development are all obstacles.
He mentioned that currently, the Federal Mortgage Bank of Nigeria
(FMBN) through the National Housing Fund
(NHF) Scheme and the housing construction windows of the Family Homes Funds (FHFL) are the most accessible sources of single-digit finance for housing construction. However, these resources are insufficient to meet the demand for housing.
The minister emphasized the need for innovative solutions to unlock housing finance and encourage private sector investments in the housing sector. The government is committed to creating an environment conducive to increased private sector housing investment and is working to remove institutional, legal, and bureaucratic barriers. This includes collaborating with stakeholders to streamline land administration and improve access to land.
Additionally, efforts are being made to reform key agencies under the ministry's supervision, such as the Federal Mortgage Bank of Nigeria and the Federal Housing Authority, to enhance their financial capacity and provide affordable housing finance.
The minister stressed the importance of REDAN and its members as partners in progress, urging them to adhere to building codes, maintain high levels of professionalism, and prioritize the quality of buildings. Building codes are crucial for public safety and the resilience of structures. Quality construction practices, innovative technologies
, and skilled labor should be priorities for developers to ensure the durability and longevity of their developments.
In conclusion, the minister encouraged real estate developers, investors, and financial experts to engage in robust discussions, knowledge sharing, and networking. By collaborating, they can explore innovative financing mechanisms, share success stories, and identify potential challenges, ultimately supporting the development of sustainable real estate projects across the nation.
Dr. Aliyu Oroji Wamakko, President of REDAN, used the forum to call on government authorities at the federal, state, and local levels to consider the real estate sector
as a means to revitalize the economy. He stressed the importance of enhancing the knowledge base of REDAN members to effectively manage the multifaceted challenges in real estate and reduce waste, thereby decreasing the incidence of building collapses.