The Federal Executive Council (FEC), on Tuesday, approved a new initiative designed to transform Nigeria’s infrastructure and housing sector.
The announcement, posted on the official X (formerly Twitter) handle of the Presidency of the Federal Republic of Nigeria, emphasized that the initiative aims to address the urgent demand for critical infrastructure and affordable home ownership.
Additionally, it seeks to foster job creation, promote inclusive growth, enhance long-term productivity, while unlocking private sector funding in the housing sector, according to the statement.
“The Federal Executive Council has approved an initiative aimed at transforming the nation’s infrastructure and housing sector.
“The initiative, as approved by the council, is tailored to meet the urgent demand for critical infrastructure and affordable home ownership, fostering job creation, inclusive growth and long-term productivity enhancement,” the statement read in part.
The statement further noted that the initiative will unlock private sector funds, which Nigerians can access for 25-year mortgages, at low interest rates to realize their dream of owning a home.
More insight
Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, highlighted during a press conference after the FEC meeting, that the new initiative aims to bolster the Federal Mortgage Bank of Nigeria and the Federal Housing Authority.
This move is designed to help both public and private entities meet their housing obligations. The initiative, as noted in the statement, is expected to enhance the first phase of the Renewed Hope Cities and Estates project, which aims to provide 50,000 housing units nationwide.
The initiative includes a partnership between the private sector and government, involving institutional investors and mortgages managed within a framework overseen by the Ministry of Finance Incorporated. This arrangement is set to facilitate efficient fund transfers from private investors to the housing sector, especially the mortgage market, thereby boosting homeownership opportunities, the statement added.
Additionally, the partnership will use a specialized framework involving a special-purpose vehicle (SPV) managed by the Nigeria Sovereign Investment Authority. This approach will allow institutional investors to offer sustainable, long-term financing with stringent oversight, minimizing risks associated with large-scale government projects.
The statement also revealed that the initiative seeks to enhance private sector participation in project governance, cost management, and asset delivery, thus providing tangible benefits to Nigerians and protecting investor interests. It encompasses critical infrastructure sectors such as power generation, toll roads, and railway projects.
Furthermore, discussions and commitments between the private sector and federal government in the infrastructure and housing sectors are expected to mobilize around N2 trillion in long-term financing