ABUJA: Determined to provide adequate and affordable housing for Nigerians, the Federal Government, yesterday, proposed National Housing Bond aimed to help housing developers access financing across all geopolitical zones in the country.
The Minister of Works and Housing, Babatunde Fashola, while speaking during the Housing Investment Forum in Abuja, said there was need to improved financing of the housing sector to the benefit of Nigerians both in urban and rural areas.
The Housing Investment Forum is with theme,” Exploring the option of National Housing Bond for Housing Development of Public -Private sector collaboration.
The minister noted that the aim was to raise Capital that will be used to finance develop of housing infrastructure in Nigeria.
According to him, “This will facilitate the provision of adequate and affordable housing for Nigeria in both urban and rural areas in a secure, healthy and decent environment”.
He added that this idea was proposed by Signatures Advisory in collaboration with the Federal Ministry of Works and Housing.
“This is about building economy in housing sector for people to plan to live around it”. He mentioned the benefits in which the National Housing Bond with afford to the government.
“This will increase foreign and domestic investment and development expansion in to the secondary cities. Markets will deepen the Capital markets with the introduction of new bond type.
“Real estate developers will get cheaper source of financing that will drive expansion and increase project profitability. Consumer will get more afford housing that meets international building standards”, he said.
Also speaking, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said housing has been a major challenges that has remained unsolved, although there is no shortage in policy and programmes.
“The two major challenges is the new housing supply to meet growing nation and urban migration and renewing substantial housing that does not meet the existing standard of habitation.”
Ahmed who was represented by Managing Director Family Homes Fund, Femi Adewole, noted that the FG has spend 200 billion naira for National social housing programme which is aimed at delivering homes to low and medium incomes earners in Nigerian.
“This is 10 years plan National Housing strategy, to make accessible housing finance to Nigeria. The programme will also provide 1.6miion Jobs with the state governments.”
She said the ministry finance is ready to develop funds that will fit for the housing bond purposes.
In his presentation, the Managing Director/Chief Executive of Federal Mortgage Bank of Nigeria, FMBN, Arch. Ahmed Dangiwa, said there are numbers of challenges we faced through FMBN issuance of the N100b mortgage backed bond for the acquisition of federal government houses allocated to civil servants as a result of the monetization policy in 2007.
“Lesson from the endeavor must shape and guide our steps towards a successful outing for National Housing Bond.
Meanwhile, Director-General of the Securities and Exchange Commission (SEC), Lamido Yuguda, said his commission has played and will continue to play a role leading role in developing Captial market to support the housing sector as well as other critical sector in the Nigeria economy.
Yuguda represented by Temidayo Obisan, Executive Commissioner Operation said the commission has established a robust frame work to facilitate securities issuance to provide the much needed funding for housing needs in Nigeria.