Examining Dangiwa’s Transformation Agenda for Housing Sector in One Year

In the first one year since his appointment, the Minister of Housing and Urban Development, Mr Ahmed Dangiwa, appears to be reshaping the landscape of the housing sector in Nigeria with innovative ideas, writes Emmanuel Addeh.

Nigeria, with its rapidly growing population and accelerating urban migration, has long struggled with housing challenges. These range from a staggering deficit in affordable homes to the proliferation of slums and substandard living conditions. For decades, these issues have persisted, exacerbated by systemic inefficiencies, inadequate financing, and a lack of coherent national strategy.

But in the about 365 days after taking over the reins at the ministry, the minister, Ahmed Dangiwa has taken on a different approach, treating challenges as opportunities for transformative change.

 Being an expert, an architect with experience spanning three decades, his leadership seem to reflect a deep understanding of the interconnected nature of housing with other sectors such as the economy, infrastructure, and housing financing.

 State of Housing in Nigeria

Housing is a fundamental human right that is central to the wellbeing of any nation. It provides more than just shelter; it is a cornerstone of health, security, social and economic opportunity. Nigeria currently faces a housing deficit in excess of 20 million units, a figure that underscores the severe shortage of adequate housing available to the population.

Rapid urbanisation, driven by a booming population, has exacerbated this shortage, as cities struggle to accommodate the influx of new residents. Other factors such as rising inflation, high cost of living, low incomes, and lack of supporting policies for homeownership are also worthy of note.

The result has been the proliferation of informal settlements and slums, where living conditions are often dire. A recent survey by PwC highlighted that 75 per cent of Nigeria’s 42 million housing units are substandard,  statistics that starkly illustrate the depth of the crisis.

The housing deficit, further compounded by systemic issues within the housing sector itself, including high construction costs, restrictive land acquisition processes and limited access to affordable financing options have created significant barriers to homeownership for millions of Nigerians.

Moreover, the sector has been plagued by inefficiencies in public housing agencies, outdated policies, and a lack of coherent national strategy. It is within this challenging environment that Dangiwa assumed office, with a clear resolve to confront the issues head-on and to effect real, lasting change.

Strategic Action Plan

 The plan, above and beyond being just a collection of policy proposals represents a visionary roadmap designed to guide the ministry’s operations and to ensure that every Nigerian has access to affordable, decent housing. The strategic action plan encompasses several key components, each of which is critical to the overall success of the Minister’s vision for Nigeria’s housing sector.

Reforming Federal Housing Institutions

One of the first steps taken by ministry was the reform of the housing sector, along with its key federal housing institutions, including the Federal Housing Authority (FHA) and the Federal Mortgage Bank of Nigeria (FMBN).

These reforms are aimed at enhancing the efficiency of these institutions, improving service delivery, and aligning their operations with the broader vision of providing affordable and decent housing for all Nigerians.

As part of the reformation, on February 15, 2024, President Bola Tinubu approved change of leadership in the housing institutions, FHA and FMBN. Following this, Oyetunde Ojo was appointed to lead the affairs of the FHA while Shehu Osidi took over as Managing Director of FMBN.

 The Minister, at an inaugural meeting with the new Executives, charged them to transform the housing agencies to effectively deliver on their mandates and the Renewed Hope Agenda for housing captured in his famous “Fail to Perform and Leave” speech. Beyond giving the charge, the minister has set in place every necessary modality to guide, supervise and ensure that these agencies meet up to expectations.

Homes, Liveable Cities, Thriving Ecosystem

Recognising the urgent need to address the housing deficit, the ministry set an ambitious target of constructing at least 20,000 housing units annually. This target is particularly focused on creating affordable housing options for low and middle-income earners, who experience difficulty in accessing housing within the affordable threshold.

The establishment of the National Social Housing Fund, designed to provide financing options for those who lack access to traditional mortgage facilities, is a key component of this initiative. By increasing the supply of affordable housing, the Ministry aims to make homeownership a reality for millions of Nigerians.

The Renewed Hope Cities and Estates Programme has become the poster child of the Ministry, noted as one of Mr President’s Top 10 projects for 2024. Expected to deliver 50,000 housing units in the first phase, the Cities cited in seven cities, including the FCT, Lagos, Port Harcourt, Kano, and Enugu, are to have at least 1,000 housing units of various house types, while the estates in the remaining 30 states will have 250 housing units per site.

Speaking during groundbreaking exercises in 12 states recently, the minister said the entire 50,000 housing units to be built in the first phase will provide jobs for 1,250,000 Nigerians, help lift 100 million Nigerians out of poverty, and support the President’s bid to create a $1 trillion economy.

 Dangiwa has moved to ensure that homes built under previous administrations are completed and allocated to deserving citizens. This initiative reflects a zero-tolerance approach to uncompleted projects, ensuring that public resources are efficiently utilised and that Nigerians can benefit from the housing projects that have already been initiated.

In addition to increasing housing supply, there’s a strong emphasis on urban renewal and slum upgrading. These initiatives are aimed at improving the quality of existing housing stock while also developing new residential areas equipped with modern amenities.

By focusing on upgrading slums and improving living conditions in urban areas, the minister looks to address the dual challenges of inadequate housing and poor living conditions, thereby ensuring that all Nigerians can live in dignity.

Another major focus is land acquisition, which remains one of the most significant hurdles in housing development, given acquisition procedural bureaucracies and high cost. To address this issue, the Housing Ministry, under Dangiwa’s leadership has taken steps to streamline land administration processes, making it easier and more cost-effective for developers and individuals to acquire land for housing purposes.

Part of these efforts is the proposed National Land Commission to operationalise the Land Use Act, and review of sections of the Act deemed outdated. These land reforms are crucial for reducing the cost of housing and for making land more accessible to those who need it most.

Building Materials Manufacturing Clusters

To further reduce construction costs and promote local industry, the ministry is establishing building materials manufacturing hubs across Nigeria’s six geopolitical zones. This initiative is not only aimed at supporting the housing sector but also at driving economic growth and job creation.

By encouraging the local production of building materials, the ministry is helping to reduce the reliance on imported materials, which are often more expensive and subject to fluctuations in global markets. This is expected to make housing construction more affordable, enhancing accessibility to housing by majority of Nigeria’s population within the low and middle income brackets.

One of the four reform task teams inaugurated by the minister months ago called the Building Materials Manufacturing Hubs Task Team was charged with the responsibility of mapping out modalities for the establishment of the hubs, recommending an ownership and funding structure, identified locations, and other operational technicalities.

Skill Acquisition Programmes

The National Artisan Skill Acquisition Programme (NASAP) is another critical component of the Ministry’s action plan. Skills are important for the economy. A 2015 report by the Organisation for Economic Cooperation and Development (OECD) affirmed that “the key to achieving inclusive and sustainable development lies in increasing the knowledge and skills of populations.”

By equipping Nigerians with the necessary skills to participate in the housing sector, the minister is attempting to address both unemployment and the shortage of skilled labour in the construction industry. The programme is designed to create a pool of skilled artisans who can contribute to the ongoing housing projects, thereby supporting the sector’s growth and development.

Furthermore, the growing spate of building collapse in Nigeria in the last decade offers justification for such a programme.

Milestones

The four Reform Task Teams earlier mentioned and inaugurated on January 16, 2024, include the Housing Institutions Reform Task Team which is chaired by Adedeji Adesemoye, Multi-Agency Project Delivery Task Team with Brig. Gen. Tunde Reis (rtd) as Chairman, Land Reform Task Team under the Chairmanship of Ugochukwu Chime and Building Materials Manufacturing Hubs Reform Task Team with  Nuhu Wya as Chairman.

The task teams, comprising industry experts, stakeholders, and government representatives, are saddled with the duties of developing blueprints that would unleash the potential inherent in the housing sector. So far, the task teams have been instrumental in identifying bottlenecks and proposing amendments to existing laws and policies.

 As the minister says, the reforms underway are set to be the most comprehensive in the history of Nigeria’s housing sector, paving the way for a more efficient and responsive housing market.

Entered the ‘Renewed Hope Cities and Estates Programme’, a flagship initiative launched in February 2024, with the groundbreaking of 3112 housing units in Karsana, Abuja. This aims to deliver 50,000 housing units across Nigeria. The first phase includes the construction of 1,000 units per site in each geopolitical zone and the Federal Capital Territory (FCT), while 250-unit estates are being developed in the remaining 30 states.

The Renewed Hope Cities are designed as integrated living communities, offering a mix of housing options that cater to all income brackets. From one-bedroom flats to five-bedroom duplexes, these developments aim to provide affordable housing while fostering social integration.

Notably, the Renewed Hope Cities and Estates Programme is meant to be a catalyst for economic growth. The construction of these housing units is expected to generate over 1.25 million jobs across various trades, from bricklayers to engineers. This job creation will have a ripple effect, stimulating local economies and creating business opportunities in areas surrounding the construction sites. By linking housing development to job creation, the Ministry is contributing to broader economic development goals.

Furthermore, in a series of groundbreaking ceremonies across the country, the ministry has demonstrated his commitment to decentralising housing development. From Katsina to Delta, the Ministry has initiated projects in 13 states, totalling 6,612 housing units, 3,112 of which are funded under a public-private partnership arrangement, which the other 3,500 units are captured under the 2023 supplementary budget.

 The ongoing work in these states signifies the Ministry’s focus on tangible, on-the-ground progress, ensuring that housing development is not confined to a few urban centres but is spread across the entire country.

To streamline the process of acquiring homes, the ministry launched an online housing portal, offering a transparent and user-friendly platform for Nigerians to apply for housing units.

This digital initiative is expected to make homeownership accessible, efficient, and secure. The portal marks a significant step towards modernizing the housing sector and making it more inclusive, allowing more Nigerians to participate in the housing market without having to travel physically to apply. With a mobile phone or any digital device in hand, Nigerians from any part of the world can apply for a house through the online housing portal.

Additionally, the ministry has expanded the Urban Renewal and Slum Upgrading Programme. With projects underway in 26 sites nationwide, the programme focuses on providing essential services such as water supply, road rehabilitation, electricity, and sanitation.

These efforts are aimed at uplifting some of the most vulnerable communities, ensuring that all Nigerians can live in dignity. By targeting urban renewal and slum upgrading, the ministry is addressing the root causes of urban poverty and inequality, making a significant contribution to social equity.

 It’sstill early days yet, but for  Nigerians, especially the middle-to-low-income earner, what is important is a streamlined sector that makes it possible to own decent homes that provide shelter, safety, and dignity, with funding opportunities that are sustainable and affordable.

Ahmed Dangiwa