Nigeria’s Ministry of Housing and Urban Development has signed a Memorandum of Understanding with a consortium to deliver 100,000 affordable housing units across the nation.
The MOU, signed at the Ministry’s headquarters in Abuja, marks a milestone for the Ministry’s Action Plan in view of its Renewed Hope Cities and Estates Projects.
The agreement with the Consortium of private sector-led companies, headed by Continental Civil and General Construction Company Limited and Ceezali Limited, represents the heralding of renewed attention to Public Private Partnership arrangements, which the ministry has made a major part of its housing delivery strategy. The units are to be delivered in two phases, starting with 20,000 units in the Federal Capital Territory followed by 80,000 units across the six (6) geopolitical zones.
In his remarks, Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa noted that the MOU was the result of months of hard work and strategic planning resulting in a robust framework to ensure the PPP arrangement was structured to succeed.
Speaking on the modalities of the MOU, Arc. Dangiwa said that under the terms of this partnership, the consortium will be the ones to provide construction finance and build the housing units to completion based on agreed housing designs and prices.
“The Federal Ministry of Housing and Urban Development, on its side, will facilitate the provision of affordable mortgage loans to off-takers through the Federal Mortgage Bank of Nigeria (FMBN), as well as facilitate the approval and grant of all legal titles in select lands for the projects as part of its efforts to create an enabling environment for private sector investment in the housing sector”, he noted.
Acknowledging the severe housing crisis in Nigeria and the inadequacy of budgetary allocations to address the deficit, Dangiwa emphasised the need to see increased access to decent and affordable housing as a collective endeavour, requiring the active participation of all stakeholders across the entire housing value chain.
“These partnerships enable leveraging the strengths of both the public and private sectors, fostering innovation, efficiency, and increased access to funding. Our long-term goal is to address the housing shortage and enhance the quality of life of our citizens”, he added.
The Minister further spoke on the job creation component of the project, noting that it is in line with the vision of President Bola Tinubu to raise 100 million Nigerians out of poverty. Notably, the PPP arrangement will create 2.5 million direct and indirect jobs at 25 jobs per housing unit.
He asked the consortium to continuously engage the technical staff of the ministry in the siting, design, monitoring, and cost evaluation of the project while urging them to ensure the delivery of the project within agreed timelines.
Consultant for the consortium and Principal Partner of C23 Consultants Limited, Damola Akindolire, noted that the PPP arrangement is the first of its kind in Nigeria, in respect of the scale and scope of the project
He added that the MOU speaks to the focus and seriousness of the leadership of the ministry to address the housing deficit in Nigeria.
While speaking, the Executive Director of Continental Civil and General Construction Company Limited, Alamu Adegbenga and Contract Manager of Ceezali Limited, Sule Wada, assured the Minister of their technical and financial capacities to deliver on the project based on their track record and experience.
Comments are closed.