The Nigerian government’s new effort to revamp the country’s housing and infrastructure was authorized by the Federal Executive Council (FEC) on Tuesday.
The announcement stressed that the program intends to meet the urgent demand for affordable house ownership and key infrastructure. It was released on the official X (previously Twitter) feed of the Presidency of the Federal Republic of Nigeria.
According to the statement, it also aims to enable private sector funding in the housing industry and encourage equitable growth, job creation, and long-term productivity.
“An initiative to transform the nation’s housing and infrastructure sector has been approved by the Federal Executive Council.”
According to the statement, “the initiative, as approved by the council, is tailored to meet the urgent demand for affordable home ownership and critical infrastructure, fostering job creation, inclusive growth, and long-term productivity enhancement.”
The announcement went on to say that the program will make private sector financing available to Nigerians for low-interest, 25-year mortgages, enabling them to fulfill their ambition of home ownership.
Further understanding
During a news conference held following the FEC meeting, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasized that the new effort intends to strengthen the Federal Mortgage Bank of Nigeria and the Federal Housing Authority.
The goal of this action is to assist both public and private organizations in fulfilling their housing commitments. According to the statement, the initiative is anticipated to improve the first stage of the Renewed Hope Cities and Estates project, which intends to supply 50,000 housing units across the country.
As part of the project, institutional investors and mortgages administered within a framework authorized by the Ministry of Finance Incorporated are partnered with the private sector.Â
According to the statement, this arrangement is expected to improve homeownership opportunities by facilitating efficient cash transfers from private investors to the housing industry, particularly the mortgage market.
The cooperation will also make use of a unique architecture that includes a Nigeria Sovereign Investment Authority-managed special-purpose vehicle (SPV). By using this strategy, institutional investors will be able to provide long-term, stable funding under strict supervision, reducing the risks connected with major government initiatives.
According to the statement, the program aims to protect investor interests and give Nigerians real advantages by increasing private sector involvement in project governance, cost control, and asset delivery. It includes vital infrastructure sectors like toll roads, railroad projects, and power generation.
Encouraging conversations and agreements between the federal government and the private sector in the housing and infrastructure domains are anticipated to raise approximately N2 trillion in long-term funding.
