By Adaobi Rhema Oguejiofor
The Minister of Housing and Urban Development, Arch. Ahmed Musa Dangiwa has disclosed that the Federal Government could generate up to N300 billion in revenue from housing sales within two years.
Dangiwa stated this while speaking during an oversight visit by the Senate Committee on Lands, Housing, and Urban Development. According to him, the Senate Committee advocated for more funding for the ministry to the tune of N500 billion. He further expressed hope that the ministry can return up to N300 billion to the treasury of the government from the sale of houses in two years, given a budgetary allocation of N500 billion.
The Minister also noted that the Senate Committee was highly appreciative of the ongoing efforts of the ministry, having done groundbreaking for the Renewed Hope Cities and Estates in 13 sites. The project is funded by the 2023 supplementary budget.
In his words, “We took the Senate committee through the public-private partnerships, we are undergoing with some of the reputable developers, and Karsana is one of them. There, we are building about 3,112 units. We have also discussed the Slum Upgrade and Urban Renewal, which cuts across 28 sites across the country. Most of these projects are almost completed, and we are about to commence the 2024 budget.”
Dangiwa further disclosed that 1,000 housing units of the Renewed Hope Cities were slated to be delivered by the end of the year, with the other units to be delivered by the middle of 2026 for commissioning by President Bola Ahmed Tinubu at the pilot phase of the project in Karsana, Abuja.
He explained that a consortium of developers was contracted to deliver a total of 100,000 housing units all over the federation under the Renewed Hope Cities and Estates programme, 20,000 units of which will be in Abuja, with the pilot phase at Karsana to house 3,112 housing units.
The Minister also noted that the developers are to provide the financing for the units, the land, and off-takers, while the ministry guaranteed their loan with a bankable off-takers guarantee in order to enable them access the finances required.
Dangiwa made a comprehensive three-dimensional presentation of the work ongoing at the Renewed Hope City site in Karsana to the Senate Committee, stating that the developers have accessed funding through Family Homes funds and other means and are on-site working to ensure that they are able to deliver in due time.
He explained that a steering committee comprising the honourable ministers, the permanent secretary, and the consortium of developers was set up, alongside a monitoring committee made up of officials from the ministry, the Federal Mortgage Bank, Family Home Funds, the developers, and other institutions, to monitor the projects on a weekly basis.
The Minister also presented some documents earlier requested by the Senate Committee to include a comprehensive briefing of the activities of the ministry, the budget performance of the 2023 and 2024 appropriation acts covering all budget lines, including the 2023 supplementary budget act, and a detailed implementation of the Renewed Hope Cities and Estates programme.
Other documents include the detailed implementation of the Renewed Hope Urban Renewal and Slum Upgrade Programme, a detailed progress report of the National Housing Programme Nationwide, a list of the federal government’s properties under the control of the ministry nationwide, and details of the partnership between the ministry and the private sector or other public institutions for urban development, among others.
On the part of the Senate committee, the chairman, Aminu Tambuwal, noted that their visit signalled the commencement of oversight activities of the committee for the 2023 supplementary and 2024 budgets, pointing out that committees of the Senate are saddled with the responsibility of overseeing the activities of ministries, departments, and agencies under them, as required under the constitution of the Federal Republic of Nigeria.
Tambuwal appreciated the minister for his cooperation, adding that it was in the nation’s interest to make sure that money appropriated to different ministries are spent in accordance with extant laws and regulations. He also agreed that more funds need to be allocated to the housing ministry, given that housing is one sector that will generally distribute wealth to the lowest of the low.