The Housing Development Advocacy Network (HDAN) urges the new leadership of the Federal Housing Authority (FHA), led by Hon Oyetunde Ojo, to adopt innovative strategies, including exploring opportunities in the capital market.
HDAN Executive Director Festus Adebayo highlighted the advantages government-owned institutions like FHA possess over private sector entities. He emphasized the need for FHA to leverage this advantage and enhance its performance.
“We encourage them to do more of partnership because we are in the era of collaboration with credible developers,” Adebayo stated, highlighting the importance of forging strategic partnerships with reputable developers to drive housing development initiatives.
HDAN urged the FHA leadership to expedite the digitization of their land use system, emphasizing the need for transparency to prevent land grabbers from exploiting loopholes within the system. Adebayo stressed that a transparent land use system would enhance accountability and deter fraudulent activities, ultimately benefiting developers and the general public.
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Recently, Minister of Housing and Urban Development Arc. Ahmed Dangiwa reiterated the importance of tapping into the capital market for affordable funding options. He emphasized the need for FHA and other housing institutions to explore innovative financing mechanisms to address challenges faced by property developers in securing construction finance.
Amidst challenges faced by property developers in securing construction finance, experts have long advocated for the capital market as a viable funding option. The collapse of a skyscraper in Ikoyi in 2022 served as a stark reminder of the risks associated with relying solely on traditional financing methods.
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The capital market offers developers greater project control and facilitates long-term fund mobilization for sustainable economic growth. However, private sector engagement in the capital market for construction finance remains limited, with government infrastructure bonds being a primary funding source for major projects.
HDAN’s advocacy for FHA to explore capital market options aligns with the broader call for industry players to innovate in addressing financing challenges. With governmental support and strategic partnerships, leveraging the capital market could unlock significant opportunities for sustainable development in the housing sector.