Nigeria’s Ministry of Housing and Urban Development has revealed plans to introduce a groundbreaking initiative aimed at revolutionizing inclusivity and affordability in Nigeria through the introduction of cross-subsidies in housing projects.
The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa who unveiled the initiative while reviewing affordable housing options presented by the Ministry’s Affordable Housing Building Design Committee, pledged to redefine housing accessibility by integrating a mix of low, medium, and high-end housing projects, ensuring inclusivity for Nigerians of all income brackets.
The housing minister commended the Design Team for their creativity and also emphasized the importance of embracing innovative concepts like cross-subsidies to counter the challenges posed by inflation and the soaring costs of building materials, which have led to an increase in planned house prices.
“I am impressed with the work that the Affordable Housing Design Team has accomplished, thus far, in reducing the cost of houses that we plan to promote so that all Nigerians can benefit. While there is progress, the escalating cost of building materials has almost taken off all the savings from the revised designs. For us to achieve our goals, we have to think out of the box and embrace creative solutions. This is why we plan to work out a comprehensive framework for introducing cross-subsidies in projects delivered through Public Private Partnerships and the agencies under the Ministry,” Dangiwa stated.
He further explained that cross-subsidies are important policy tools used by governments and urban planners to address housing affordability issues and promote inclusive urban development, adding that the approach involves redistributing the costs and benefits of housing development across different income groups.
“The reality of the affordable housing debate is that many civil servants and other Nigerians working in the public sector cannot even afford a decent mortgage with their salaries. Our mechanism will be to promote market-based prices for high-end developments to those who can afford them, thereby subsidizing housing costs for lower-income households.
“We are not driven by profit but the desire to ensure that all Nigerians have access to decent and affordable housing. Through cross-subsidy, we aspire to create a blueprint for a harmonious society, ensuring that the benefits of growth are shared by all. We are transforming the dream of affordable housing into a tangible reality for our citizens,“ he further stated.
