The Housing Development Advocacy Network (HDAN) has cautioned the Ministry of Finance Incorporated (MOFI), to learn from the previous housing experiments of the federal govt.
The group gave the advice while commending the Federal Government for its N250 million commitment to addressing Nigeria’s housing deficit.
Besides, the group also lauded MOFI for its readiness to raise money from the capital market to address housing challenges.
This was highlighted during HDAN’s visit to the Ministry of Finance Incorporated (MOFI), where the organization expressed confidence in the ministry’s readiness to transform the housing sector.
HDAN, led by its Executive Director, Mr. Festus Adebayo, observed MOFI’s robust plans to tackle both the demand and supply challenges in the housing sector.
He stated that the company has displayed a deep understanding of the complexities of housing development, including strategies such as leveraging the capital markets to secure funding for large-scale projects.
However, the HDAN boss noted that MOFI’s approach aligned with its own advocacy goals which over the years have been promoting through his parent organisation, the Africa International Housing Show.
“We are happy that MOFI is ready to raise money from the capital market which is one area that has not been tapped in Nigeria. We are hopeful that from 2025 our sector will witness a new development in the area of financing for affordable housing and mortgage financing on the demand side of housing”, the HDAN boss added.
“We urge you to deal only with professionals and estate developers that have excellent record of delivery and performance,those with loan defaulting records must be totally avoided,” he said.
Adebayo lauded MOFI’s proactive measures but also provided constructive input to further refine its strategies.
He therefore called on estate developers that are not fraudulent to rally support for the success of this new idea of building one million houses by President Bola Ahmed Tinubu.
“We are pleased to observe that Mortgage Bankers Association is already supporting MOFI,” he said.
Dr Ugochukwu Chime, former Chairman of the Federal Government Reform Committee on Land, who was at the meeting, emphasised the critical need for MOFI to address issue of land titling.
According to him, this has created a significant barrier to accessing housing funds.
Similarly, Emmanuel Akinwumi, another key stakeholder at the meeting, urged the government to review outdated housing and mortgage laws to improve sector performance and ensure the success of the new initiatives.
MOFI’s plans include close collaboration with key housing agencies, including Family Homes Funds Ltd. and the Federal Mortgage Bank of Nigeria. The company has also pledged support to Primary Mortgage Institutions (PMIs), aiming to enhance their operational capacity to meet the growing demand for affordable housing.
HDAN praised MOFI’s commitment to working exclusively with reputable developers and mortgage banks with proven records of integrity and performance, emphasizing the importance of eliminating fraudulent practices in the housing sector.
Meanwhile, the CEO of MOFI, Dr. Armstrong Takang, said the Federal Government has launched the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a significant step toward addressing Nigeria’s housing deficit. This fund is a cornerstone of the One Million Homes Presidential Initiative, designed to offer affordable housing through innovative financing solutions.
The MREIF will operate as a market-driven framework, integrating pension funds and other financial sector resources to provide affordable mortgage options, particularly to pension account holders.
Takang emphasized that the fund is a pivotal step toward broadening homeownership opportunities and addressing long-standing housing challenges. According to him, transparency and market efficiency will underpin the fund’s operations, strengthening the mortgage market and creating sustainable pathways to homeownership.
To ensure the success of the MREIF, the government has engaged key figures from the pension and financial sectors. These include the Accountant General of the Federation, Dr. Oluwatoyin Madein, and executives such as Wale Odutola of ARM Pensions, Funmi Ekundayo of STC Trustees, and Saadu Jijji of PAL Pensions. Their collective expertise in fund management, real estate financing, and investment advisory will shape the fund’s structure and deployment.
The MREIF offers a groundbreaking opportunity for pension account holders, granting access to mortgage loans at reduced interest rates. This innovative approach aims to dismantle the barriers that have hindered affordable homeownership for many Nigerians, aligning with the government’s broader vision for an inclusive and sustainable housing sector.
Through these collaborative efforts, the Housing Development Advocacy Network (HDAN) said the Federal Government, in partnership with MOFI and other key stakeholders, will pave the way for significant advancements in housing development and accessibility in Nigeria.
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