Nearly N5 trillion worth of property in Federal Housing Authority possession, MD reveals

The Federal Housing Authority (FHA) is in possession of property worth nearly N5 trillion, according to its Managing Director and Chief Executive Officer, Oyetunde Ojo.

Ojo disclosed this during the Federal Housing Authority media chat broadcast by Arise News TV on Monday.

The media chat focused on the authority’s housing projects, developments across the country and the financing arrangements being used to support housing delivery.

What Oyetunde Ojo is saying

Ojo briefly disclosed the value of property in the authority’s possession, linking it to the collection of ground rent.

• “We are in possession of close to about N5 trillion worth of property because we collect ground rent,” Ojo said.

The FHA collects ground rent from allottees and occupants of its estates as part of its property management activities.

Ojo also said between 10,000 and 15,000 housing units are ready for delivery under the current administration.

He said the government was collaborating with private investors in real estate and referenced the MOFI Real Estate Investment Fund (MREIF), which he said had about N200 billion released to MOFI and available for private investors to access.

Updates on some ongoing projects

Ojo also provided updates on several housing projects being developed or completed across the country. The projects include developments in Abuja, Ibadan, Lagos, Kano and Cross River State.

• In Ajoda, Ibadan, about 120 housing units had been built, with more units still under construction, while another 100 housing units had been delivered in Lugbe, Abuja.
• In Gwari, close to 400 housing units would soon be commissioned, with Ojo saying the project was developed without a single funding from the Federation Account.
• In Jibi, Abuja, 1,550 housing units procured for the Nigerian Army were constructed in less than a year and would soon be commissioned.
• At Karsana in Abuja, the development comprises 3,112 housing units, with the first phase of about 2,000 units expected to be commissioned soon.

Ojo added that the FCT Minister, Nyesom Wike, was undertaking road construction in Karsana to improve access to the development.

In Kano, between 500 and 600 housing units would soon be commissioned by the Ministry of Housing and Urban Development, while about 500 housing units in Lagos would also soon be commissioned. He further said groundbreaking had commenced on housing projects in several states, including a project in Odukpani, Cross River State, which would soon be commissioned by the FHA.

Get up to speed

The Federal Government’s housing provision under the Tinubu administration kicked off in February 2024 with the launch of the construction of the 3,112-unit Karsana housing project in Abuja under the Renewed Hope Cities and Estates Programme.

• Since then, construction has commenced at several Renewed Hope Estates and Cities across the country.
• Beyond the Renewed Hope projects, the government has also commenced other housing developments and explored partnerships with private investors.
• In Abuja, the Federal Government recently commenced construction of 250 housing units for federal civil servants in Dukpa, Gwagwalada, comprising two- and three-bedroom bungalows.

The project is expected to complement the 350 units already provided under the Federal Integrated Staff Housing Programme, bringing the total number of units under the two initiatives to 600.

The Federal Mortgage Bank of Nigeria is also set to complete 962 housing units in Abuja following the recovery of the Kaba District housing project, which was financed with a $65 million loan that was allegedly diverted.

What you should know

Nigeria’s housing sector continues to face challenges beyond the supply of homes, including limited access to affordable mortgages, fraudulent property transactions, failed developments and weak consumer protection.

• The Federal Government has proposed a National Housing Finance Authority as part of broader reforms to strengthen mortgage financing, expand access to the National Housing Fund for informal sector workers and improve opportunities for diaspora housing investment.
• The proposed National Housing and Built Environment Regulation Policy would introduce developer licensing, escrow protection for buyers’ funds, stronger construction standards, improved land administration and a National Housing Data Observatory.
• Industry experts who previously spoke to Nairametrics welcomed the proposed reforms, particularly developer licensing and regulated escrow accounts for off-plan housing transactions, saying they could improve transparency and protect homebuyers.

Festus Adebayo, Oluwakemi Adeyemo, Eniola Ayomiotan Olukoya and Olufemi Adeleke proposed stronger consumer protection, project verification, regulated escrow arrangements and construction monitoring.

The proposed reforms are aimed at addressing some of the structural challenges in Nigeria’s housing sector while supporting greater transparency and protection for homebuyers.