...See Real Estate as a fulcrum to Revitalize our economy -Dr. Wamakko
The Minister for Housing and Urban Development, Arc. Ahmed Musa Dangiwa on Tuesday said they are fully aware that real estate development is not just about constructing buildings, but it is a catalyst for economic progress and social development.
He said Real Estate has the power to create jobs and improve the quality of life for people.
Represented by the minister of state, Abdullahi Gear at the opening of a two-day seminar organized by the Real Estate Developer's Association of Nigeria (REDAN) said under the Renewed Hope Agenda of President Bola Ahmed Tinubu, housing has been made a key priority, as a sector that can help significantly towards lifting 100million Nigerians out of poverty, creating jobs and ensuring inclusive growth.
Arc. Ahmed Musa Dangiwa said the federal government recognized that to do this requires, a collaborative effort from both the public and private sectors will surely be needed.
Speaking further, he said, "Opportunities for Sustainable Real Estate Projects," is apt. We all recognize that the most significant challenge in affordable housing is the cost of finance.
" Interest rates on bonds are in the double digits, and raising international funding for housing projects remains challenging due to fluctuations in our foreign exchange rates. Moreover, budgetary financing for housing development is inadequate to meet the demand.
"Currently, the most accessible sources of single-digit finance for housing construction are the Federal Mortgage Bank of Nigeria (FMBN) through the National Housing Fund (NHF) Scheme and the housing construction windows of the Family Homes Funds (FHFL).
" However, the resources pooled together by FMBN through NHF and FHFL through government injections and partnerships are still grossly inadequate to provide the volume of housing required.
"Therefore, in line with the conference theme, it is imperative that for our nation to deliver the necessary quantum of housing units that Nigerians need at prices they can afford, we must find innovative ways to unlock housing finance while encouraging private sector investment in the housing sector.
"As a Ministry and in alignment with the vision and direction of His Excellency, President Bola Ahmed Tinubu, we are dedicated to creating a conducive environment that fosters increased private sector investment in housing.
"Our objective is to break all institutional, legal, and bureaucratic barriers that have hindered sector growth over the years.
"This includes collaborating with key stakeholders to review and amend the Land Use Act to streamline land administration and make access to land easy and fast. We hope that by doing so, we can unlock the estimated dead capital estimated by Price Waterhouse Coopers as being over $300 billion.
" Additionally, we are diligently working to reform the key agencies under the Ministry's supervision- the Federal Mortgage Bank of Nigeria and the Federal Housing Authority. Strengthening these institutions will enhance their financial capacity to provide affordable housing finance and work with members of REDAN, enabling the delivery of more housing to Nigerians.
" As we move in this direction, it is important to emphasize that REDAN and its members have a pivotal role to play as partners in progress. Indeed, your association's integrity as partners and success are underpinned by fundamental principles: the adherence to building codes by members, commitment to ensuring the quality of buildings, and maintaining the highest levels of professionalism. As members of REDAN, these principles are not mere guidelines, they are the cornerstones upon which your reputation, credibility, and the safety of our communities are built.
"I would like to emphasize that building codes are not bureaucratic regulations; they are the guardians of public safety and form the structural integrity of our houses. Adhering to these codes would ensure that our buildings are resilient and capable of withstanding various challenges, including natural disasters.
"Therefore, it is essential for developers to meticulously follow these codes, leaving no room for compromise or negligence. By doing so, you demonstrate your commitment to the safety and well-being of the people who will inhabit the houses you build.
"Quality should also be the hallmark of every construction project you undertake. From the choice of materials to the craftsmanship employed, every aspect of our buildings must reflect the highest standards, Quality buildings not only withstand the test of time but also enhance the overall living experience for the occupants. As government, we will do our part, but we expect REDAN to enjoin its members to also invest in superior construction practices, innovative technologies, and skilled labor to guarantee the longevity and durability of our developments.
"So, to all the real estate developers, investors, and financial experts present here today, I urge you to leverage this platform for robust discussions, knowledge sharing, and networking. Let us explore innovative financing mechanisms, share success stories, and identify potential challenges. By fostering dialogue and collaboration, we can unlock new investment opportunities, mobilize financial resources, and support the development of sustainable real estate projects across the nation."
Earlier, the president of REDAN, Dr. Aliyu Oroji Wamakko used the forum to call on government at the Federal, State and Local Government levels to consider the real estate as a fulcrum to revitalize the economy by supporting the sector and REDAN.
Dr. Wamakko who is also the Chairman and Chief Executive Officer of Jedo investment company limited said the essence of the workshop is to further build the knowledge base of their members to be able to manage the multidimensional and multidisciplinary challenges involved in real estate business.
He said it is also to increase their Capacity to reduce waste and ensure timely delivery of projects, adding that the knowledge from the conference will greatly help in reducing the incidence of building collapse.
