Nigeria to invest US $1bn in bridging housing deficit
The government of Nigeria through the Family Homes Fund (FHF) intends to invest US $1bn over the next five years in bridging its 17 million housing deficit. Senior Special Assistant to the President on Infrastructure, Imeh Okon confirmed the report and said that the government would issue US $275m yearly for a five year period. The projects, despite being powered by the FHF will also involve private sector participation.
According to the United Nations, Nigeria stands at a 180 million population with an annual growth rate of 3% as of 2015 and an urban population growth rate of 5%. Data from the World Bank and the National Bureau of Statistics states that there is a 17 million housing deficit in Nigeria. Globally, 1.6 billion people live in sub-standard housing according to UN statistics. In Nigeria, over 100 million of its 180 million citizens live in substandard housing.
Yemi Adelakun, the MD for Nigeria Integrated Social Housing(NISH) commented that the available houses built do not meet to the needs and affordability of the people hence making bridging the housing deficit hard. Currently, about 3,000 to 6,000 affordable housing are under construction in Nigeria with 1,400 houses in Nassarawa. Adeyemi Dipeolu, the Special Adviser to the President on Economics said that the Ministry of Power, Works and Housing has managed to complete more than 2,000 houses in 72 units across Nigeria.
In regards to high mortgage, Dipeolu said that it would be a challenge for Nigerians to access homes with the high mortgage rates. “The government is working to ensure that there are cheap mortgage available for Nigerians.”
Okon added that under FHF, Nigerians earning even US $83 can afford a home which covers the government’s main aim of providing social and affordable homes.