22m Housing Deficit: FG, REDAN To Sign MoU On 774,000 Housing Units

After several consultations with relevant stakeholders in the built sector, the Real Estate Development Association (REDAN)), an umbrella body of all registered real estate developers in Nigeria, is set to sign a memorandum of understanding (MoU) with Family Homes Funds to build 100 housing units in each of the 774 local government in the country.

 Family Homes Fund (FMF) is a social intervention programme of the federal government with initial shareholding by the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority.

In an interview with LEADERSHIP in Abuja at the weekend, president of REDAN, Dr. Aliyu Wamakko, said the scheme tagged Rural-Urban Housing Initiative (RUHI) 774, is part of the contribution of the association towards creating employment for Nigerians as the scheme is expected to provide about 2,500 jobs (direct and indirect) in each of the 774 local governments nationwide.

According to Wamakko, the targeted customers for the housing scheme are the medium and low-income earners in the para-military, National Housing Fund (NHF) contributors, and any Nigerian that has the capacity to pay back.

He further disclosed that the association has written letters to targeted off-takes and they have confirmed that they will participate.

He said, “Our aim is to revitalise Nigeria’s economy by creating massive employment. We want to turn around the way of doing business in the country and make the government aware that they have no business building houses. We are sure of creating employment, wealth through this scheme especially at a time the country is in recession and battling COVID-19 pandemic.’’

Wamakko also said REDAN is teaming up with the Family Homes Fund for financing for the project.

 The association, according to him, wants a single-digit loan so that the dream of building affordable housing units can be realised.

‘‘If the government can give intervention fund to the health and entertainment sectors, then it should give to the construction sector too. 

Most of the people that will handle the project are REDAN members. The association has about 3000 registered corporate firms all over the country. We are going to pay interest on the loan and create massive employment for the people in the rural areas. Funding this initiative is a win-win situation for the government”, he added.

The REDAN president said that the association was working with professionals in the built sector like the Nigerian Institute of Builders, Nigerian Institute of Architects, Nigerian Institute of Quantity Surveyors and Nigerian Institute of Land Surveyors to ensure standards of the houses.

He said REDAN is in touch with the building materials association of Nigeria to make sure the houses to be built are ‘made in Nigeria’ thereby creating opportunities for raw materials. ‘‘Some of them have promised 25percent discount for us as their own corporate social responsibility (CSR) for the execution of the project.

He also explained that all the professional bodies have agreed to use the project to mentor fresh graduates from the university as they are to release their members at the federal, state, and zonal chapters to participate in the needed supervision for the project.

He also said REDAN is creating a cluster with the housing project which the government can also use for economic empowerment of Nigerians.

“The Federal Mortgage Bank of Nigeria (FMBN) is expected to provide mortgages for the beneficiaries. We want FMBN to do this under their Rent-To-Own programme. Beneficiaries will be given keys before they start paying which will be 25,000 per month. We are providing our lands for the project. All we want from the government is single-digit loan and we are going to pay VAT on it.”

Credit: Leadership