FEC approves initiative to transform housing sector
The Federal Executive Council, FEC, has approved an initiative aimed at transforming the nation’s infrastructure and housing sector.
The initiative is tailored to meet the urgent demand for critical infrastructure and affordable home-ownership, fostering job creation, inclusive growth, and long-term productivity enhancement that will unlock private-sector funds, by which Nigerians can access for 25-year mortgages at low interest rates to realise their dream of owning a home.
Briefing newsmen the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, explained that the initiative would propelled by collaborations between the private sector and Sovereign Owned Enterprises (SOEs) like the Nigeria Sovereign Investment Authority (NSIA), and the Ministry of Finance Incorporated (MoFI).
He said such partnerships were envisioned to strategically channel funding to high-impact areas, ensuring impactful economic outcomes for the people.
“This alliance signifies a step towards driving sustainable development and economic growth in Nigeria by leveraging private-sector resources and expertise in strategic areas of need,” the Minister said.
According to him, the initiative was aimed at strengthening the Federal Mortgage Bank and the Federal Housing Authority, enabling public and private entities to fulfill their housing obligations.
He said the collaboration is expected to boost the initial phase of the President’s Renewed Hope Cities project, with the aim of providing 50,000 units of homes across the country.
Mr Edun said the partnership would include institutional investors creating mortgages within a framework overseen by the Ministry of Finance Incorporated to enable funding.
He emphasised that private-sector discussions and commitments indicated a potential mobilisation of around N2 trillion in long-term financing for housing and infrastructure projects nationwide.
Mr. Edun said by collaborating with private institutional investors, the President Tinubu-led Government had sought to leverage the expertise and capital of private investors to accelerate the delivery of vital projects, driving sustainable development and economic progress for all Nigerians.
