Dr. Wamakko Advocates Recognizing Real Estate as a Vital Catalyst for Economic Revival
The Minister for Housing and Urban Development, Arc. Ahmed Musa Dangiwa, underscored that real estate development goes beyond mere building construction; it serves as a driving force for economic advancement and social progress. He recognized the potential of the real estate sector in job creation and improving people’s quality of life.
At a two-day seminar organized by the Real Estate Developer’s Association of Nigeria (REDAN), the minister, represented by Minister of State Abdullahi Gear, emphasized President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes housing. The government believes that the housing sector can play a pivotal role in lifting 100 million Nigerians out of poverty, generating employment opportunities, and fostering inclusive growth. He stressed the importance of collaborative efforts between the public and private sectors to achieve this ambitious goal.
Arc. Ahmed Musa Dangiwa also pointed out the considerable challenges facing affordable housing, primarily due to the high cost of financing. Challenges include double-digit interest rates on bonds, difficulties in raising international funding due to foreign exchange rate fluctuations, and insufficient budgetary allocation for housing development.
He highlighted that, presently, the Federal Mortgage Bank of Nigeria (FMBN) through the National Housing Fund (NHF) Scheme and the housing construction windows of the Family Homes Funds (FHFL) offer the most accessible sources of single-digit finance for housing construction. However, these resources fall short of meeting the housing demand.
The minister stressed the imperative need for innovative solutions to unlock housing finance and encourage private sector investments in the housing sector. The government is dedicated to creating an environment conducive to increased private sector housing investment and is actively working to eliminate institutional, legal, and bureaucratic barriers. This includes collaborating with stakeholders to streamline land administration and enhance land access.
Moreover, the ministry is in the process of reforming key agencies under its purview, such as the Federal Mortgage Bank of Nigeria and the Federal Housing Authority, to strengthen their financial capacity and facilitate affordable housing finance.
In conclusion, the minister encouraged real estate developers, investors, and financial experts to engage in in-depth discussions, share knowledge, and network. By joining forces, they can explore innovative financing mechanisms, exchange success stories, and identify potential challenges, ultimately contributing to the development of sustainable real estate projects nationwide.
Dr. Aliyu Oroji Wamakko, President of REDAN, utilized the platform to urge government authorities at the federal, state, and local levels to consider the real estate sector as a means of rejuvenating the economy. He emphasized the importance of enhancing the knowledge base of REDAN members to effectively address the multifaceted challenges in real estate, reduce waste, and decrease the incidence of building collapses.
