Housing Deficit: REDAN Lauds FG’s Move to Create National Housing Funds

Yemi Akinsuyi/

The Real Estate Developers Association of Nigeria (REDAN) has lauded the federal government’s moves to accelerate the pace of reforms in the housing sector via the National Housing Funds (NHF).

The Minister of Works and Housing, Mr. Babatunde Fashola had earlier stressed the need to create National Housing Funds that developers could access at a reasonable rate to reduce the housing deficit in the country.

Addressing newsmen in Abuja Monday, the President, REDAN, Alh Aliyu Oroji Wamakko, said construction of houses must be private-sector driven because the private developers do not just build a house but ensure that the houses are properly maintained.

He added, “Government has no business in building houses or constructing houses for homeless Nigerians. It is the duty of developers to do so while the government facilitates the process.”

Lauding the initiatives, he said it would help in solving the housing deficit in the country.

“We are happy that the Minister of Works and Housing has seen the need to solve this problem via a private-sector approach.

“We believe it will be a win-win situation for the developer and the government,” he said, adding that private developers would pay taxes and create employment via the initiative.

He said that it would take the private sector to achieve the desired growth in the housing sector.

On recapitalization of the Mortgage bank, he called on the Federal Government to recapitalize the Federal Mortgage Bank of Nigeria (FMBN) to enable the apex mortgage bank to increase delivery of affordable housing in the country.

He said, “FMBN is the only bank that gives loans to developers at an affordable rate. They give loans to developers at 6, 9, and 10 percent. We believe that recapitalizing them will solve the housing deficit.”

He argued that now the bank is grossly inadequate to solve the huge housing deficit confronting the country.

Wamakko emphasized that the long-overdue recapitalization of the bank is fundamental to the growth of the housing industry as it will empower the FMBN to service both the demand and supply sides of the housing market in Nigeria.

“Recapitalization is the best answer to help reduce the housing deficit in Nigeria,” he added.

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