The Federal Government plans to establish a Special Purpose Investment Vehicle (SPIV) to convert underutilized assets into revenue-generating ventures for affordable and social housing initiatives.
The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, announced this at the Renewed Hope Housing Public-Private Partnership (PPP) Summit in Abuja on Monday, March 17, 2025, as contained in a statement on the official website of the ministry.
Dangiwa explained that the SPIV will facilitate the redevelopment of underutilized government-owned properties and prime federal land, turning them into financial resources to fund large-scale housing projects.
“On Federal assets nationwide, the Minister said that the Ministry is exploring innovative PPP models to optimize underutilized federal assets, including dilapidated properties and prime land, hinting plans are underway for the possible establishment of a Housing and Urban Development Special Purpose Investment Vehicle (SPIV) to transform these assets into revenue-generating projects that will fund affordable and social housing,” the statement read in part.
This initiative aligns with the current administration’s broader goal of leveraging public-private partnerships (PPPs) to bridge Nigeria’s housing deficit, currently estimated at over 20 million units.
The Minister stressed that closing this gap would require delivering 500,000 housing units annually, at an estimated N10 million per unit, translating to an annual investment of over N5 trillion ($6.25 billion).
He stressed that given the scale of financing required, the government is prioritizing innovative funding models to attract private sector participation.
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Dangiwa stated that beyond optimizing assets, the government is collaborating with the National Population Commission to establish a National Housing Data Infrastructure to provide reliable housing statistics. Additionally, Nigeria has strengthened its engagement with UN-Habitat, committing $500,000 annually to support urban development.
He further noted that the Federal Government, under the Renewed Hope Cities programme, is working with private developers to deliver 100,000 housing units nationwide, starting with Abuja, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa.
- The Minister announced that the Ministry has secured financing from Shelter Afrique Development Bank (ShafDB) for an initial 5,000 units, marking the first direct FG-ShafDB collaboration on affordable housing financing.
- Beyond funding, ShafDB will provide technical advisory services, conduct a housing market assessment using its VIRAL model, and develop a housing deficit reduction strategy with three PPP transaction models. The bank will also help identify private sector partners, structure market-driven PPPs, and raise funds while supporting the Ministry through training, workshops, and policy development.
Dangiwa urged private developers and financial institutions to align with the Ministry’s vision and called on the ICRC to streamline PPP regulations to accelerate housing delivery.
The summit concluded with the signing of an MoU between the Ministry and ShafDB, followed by an award recognizing Dangiwa’s contributions to Nigeria’s housing sector.
