The Federal Executive Council (FEC) has approved N31.66 billion for the construction of an access road to the 3,112-unit Karsana housing project in Abuja.
This information was conveyed in a statement published on the official website of the Ministry of Housing and Urban Development on Tuesday.
The Housing Minister Ahmed Musa Dangiwa described the approval of the construction of the access road as a milestone in the administration’s efforts to tackle the housing deficit.
The approval was one of several key resolutions from the two-day FEC meeting held on Monday and Tuesday.
Dangiwa noted that the construction of the road would enhance accessibility to the housing estate, stimulate further development in the area, and contribute to economic growth.
“The Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has extended his deepest appreciation to His Excellency, President Bola Ahmed Tinubu, GCFR, for his bold vision for housing development and consistent support towards achieving the goals of the Renewed Hope Agenda for housing and urban development.
“This commendation follows the approval of N31.66 billion by the Federal Executive Council (FEC) for the construction of a critical access road to the 3,112 Housing Unit Renewed Hope City in Karsana, Federal Capital Territory (FCT). The approval was granted during the FEC meeting held today,” the statement read in part.
The statement further noted that the approval followed a memo presented by the Minister of the Federal Capital Territory (FCT), Nyesom Wike, in line with a presidential directive issued last year during the launch of the Karsana Renewed Hope City project.
More insight
Dangiwa commended Wike for driving the approval process and reiterated his ministry’s commitment to ensuring that all Renewed Hope Housing Projects receive necessary infrastructure support.
- According to him, the access road is crucial for residents and investors, as it will ease transportation and encourage private sector participation in Abuja’s housing sector.
- The statement highlighted that the Karsana Renewed Hope City, a flagship project under the Tinubu administration, is designed to deliver affordable housing to Nigerians.
The road construction is expected to commence soon, with close monitoring to ensure timely completion.
What you should know
The Renewed Hope Estates and Cities Programme was launched in February 2024 with the flag-off of the 3,112-unit Renewed Hope City project in Karsana, Abuja. The programme follows two funding models:
- Renewed Hope Cities, like the Karsana project, operate under a Public-Private Partnership (PPP) model. Private developers finance construction through high-interest loans and cover land acquisition and infrastructure costs, leading to higher prices. For instance, one-bedroom units under this model cost between N22 million.
- Renewed Hope Estates are funded through budgetary provisions, with free land and infrastructure subsidies to enhance affordability. One-bedroom units under this model cost between N8 million and N9 million.
To support the Karsana Renewed Hope City, the Federal Mortgage Bank of Nigeria (FMBN) has secured a N100 billion Offtaker Guarantee. Housings Minister Ahmed Dangiwa highlighted that this guarantee is crucial for developers, helping mitigate high land costs and double-digit interest rates on construction financing.
