The Federal Housing Authority (FHA) is set to raise funds through capital markets to deliver millions of housing units over the next 50 years, tackling Nigeria’s housing deficit.
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, gave this charge to the FHA during a formal performance review meeting with its management team on Thursday, as stated on the Ministry’s website.
This move aims to deliver affordable housing nationwide. By issuing bonds and securing investments, the FHA will boost its capacity to build and market homes, repay loans, and declare profits, transforming the housing sector.
“The FHA was charged to come up with innovative ideas, explore avenues to source funds that could help them deliver millions of housing units in the next 50 years as against the 50,000 it has provided over the past 50 years.
“Similarly, the FHA was charged to go to the capital market, issue bonds and raise funds to deliver mass housing project nationwide, as well as market the houses, thereafter repay the loans and also declare profit,” the statement read in part.
Dangiwa warned that lack of funds would not excuse the FHA from meeting its deliverables, advising interim collaboration with the Federal Mortgage Bank of Nigeria (FMBN) for construction loans until capital market funds are secured.
Other targets for the FHA include utilizing its license to operate across all income segments in line with the government’s housing strategy.
The Housing Minister charged 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.
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Acknowledging the current inflation, the minister advised rescoping buildings by eliminating non-essential fittings like tiling and Plaster of Paris (PoP) to make homes more affordable for Nigerians.
According to the statement, Managing Director of the Federal Housing Authority, Oyetunde Ojo, outlined the agency’s progress.
He noted that the FHA is currently constructing 336 housing units and an office at the Bwari Area Council of the FCT, alongside 820 housing projects under a public-private partnership (PPP) and direct construction in the Apo/Guzape area of the FCT. The agency plans to commission approximately 1,000 houses by December 2024.
Ojo also highlighted the deployment and operationalization of the Enterprise Content Management System (ECM), with 350 staff having licensed access and 50 staff being provided with official laptops.
