The Minister of Housing and Urban Development, Architect Ahmed Musa Dangiwa, the Federal Government plans to unlock over $300 billion dead capital in the real estate and agriculture sectors to bridge the housing deficit in the country.
Dangiwa, stated this while declaring the two-day conference organized by the Real Estate Developers Association of Nigeria (REDAN) open in Abuja, admitted that there were challenges in optimizing the potentials of the sector.
The minister, who was represented by the Minister of State for Housing and Urban Development, Alhaji Abdullahi Tiani Gwaro, said his ministry was ready to break all institutional, legal, and bureaucratic barriers that have hindered the sector’s growth over the years. It would be recalled that Price Waterhouse Coopers in its report estimates that Nigeria has between $300billion and $900billion worth of dead capital in residential real estate and agricultural land.
He said: “We all recognize that the most significant challenge in affordable housing is the cost of finance. Interest rates on bonds are in the double digits, and raising international funding for housing projects remains challenging due to fluctuations in our foreign exchange rates. Moreover, budgetary financing for housing development is inadequate to meet the demand.
“However, the resources pooled together by FMBN through NHF and FHFL through government injections and partnerships are still grossly inadequate to provide the volume of housing required.
“Our objective is to break all institutional, legal, and bureaucratic barriers that have hindered sector growth over the years. This includes collaborating with key stakeholders to review and amend the Land Use Act to streamline land administration and make access to land easy and fast.”
Earlier, the President of REDAN, Alhaji Aliyu O. Wamakko, had urged his members to comply with all extant laws for improving the national economy and declared the association’s support to the FG on affordable and accessible housing. He said: “I wish to reiterate that the Association is ready to collaborate with the Government to provide affordable housing, as our members are willing and ready. Also, I wish to reiterate that this Council has zero tolerance for shady deals that will taint our business, for which we have labored and must protect.
“I, therefore, want to use this forum to call on the government at the Federal, State, and Local Government levels to consider real estate as a fulcrum to revitalize the economy by supporting the sector and REDAN”. He added that, “The essence of this auspicious event is to further build the knowledge base of our members to be able to manage the multidimensional and multidisciplinary challenges involved in real estate business. It is also to increase our Capacity to reduce waste and ensure timely delivery of projects.
“We are concerned that our members comply with all extant laws and be ambassadors of improving and contributing to the growth of the national economy, hence we have invited relevant regulatory organizations to update Members on Real Estate Developers Role in the emerging economy.
Finance is one of the essentials of our business, hence our focus on how to get facility to build homes at cost that the average Nigerian will be able to afford. We are keen on how our members can secure long tenured and single digit debt financing without which home ownership will remain elusive, as it is a fact that real estate development is capital intensive and requires a lot of outlay.
“I also want to reiterate that the Association is ready to collaborate with the Government to provide affordable housing, as our members are willing and ready. Also, I wish to reiterate that this Council has zero-tolerance for shady deals that will taint our business, for which we have labored and must protect”.
