The Federal Housing Authority (FHA) is set to raise funds through capital markets to deliver millions of housing units over the next 50 years, addressing Nigeria’s housing deficit.
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, issued this directive during a formal performance review meeting with the FHA management team, as announced on the Ministry’s website.
This initiative aims to provide affordable housing nationwide. By issuing bonds and securing investments, the FHA will enhance its capacity to build and market homes, repay loans, and declare profits, thereby transforming the housing sector.
Key Points from the Meeting
- Capital Market Strategy: The FHA is encouraged to explore innovative funding sources and tap into capital markets to issue bonds, raise funds, and undertake mass housing projects. This is a significant shift from the 50,000 housing units provided over the past 50 years to a target of millions in the next five decades.
- Interim Collaboration: To bridge the funding gap before securing capital market investments, the FHA is advised to collaborate with the Federal Mortgage Bank of Nigeria (FMBN) for construction loans.
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- Operational Expansion: The FHA is tasked with utilizing its license to operate across all income segments, aligning with the government’s housing strategy to cater to diverse housing needs.
Minister’s Recommendations
Minister Dangiwa emphasized the need for the FHA to leverage its budget-free status by partnering with credible local and international investors to secure financing and deliver more affordable housing to Nigerians. He also suggested cost-saving measures such as eliminating non-essential fittings like tiling and Plaster of Paris (PoP) to make homes more affordable amid current inflation.
READ ALSO: FMBN and FHA Collaborate to Provide Affordable Housing in 22 States
Progress and Future Plans
FHA Managing Director, Oyetunde Ojo, outlined the agency’s current projects and future plans:
- Current Projects: The FHA is constructing 336 housing units and an office at the Bwari Area Council of the FCT, and overseeing 820 housing projects under public-private partnerships (PPP) and direct construction in the Apo/Guzape area of the FCT. The agency aims to commission approximately 1,000 houses by December 2024.
- Technological Advancements: The FHA has deployed and operationalized the Enterprise Content Management System (ECM), with 350 staff having licensed access and 50 staff provided with official laptops.