NEWS
12 Renewed Hope Estate Funded from 2023 Supplementary Budget – Minister
The Minister of Housing and Urban Development, Mr Ahmed Dangiwa, has revealed that the Federal Government is funding 12 Renewed Hope Estates through the N50 billion allocation in the 2023 supplementary budget.
Dangiwa, represented by Mr Salisu Haiba, Director Press and Public Relations in the ministry, said this at the 2024 conference of the Property and Environment Writers Association (PEWAN) in Lagos.
The theme of the conference is, “Resolving the financial and regulatory dilemma to achieve Renewed Hope Agenda on Housing”.
According to the minister, the ministry has been allocated an additional N27.2 billion in the 2024 budget to fully complete the infrastructure, while awaiting the 2025 budget to expand the programme to cover more states.
He explained that the ministry adopted a range of creative and diversified funding strategies to create impact under the Renewed Hope Agenda of President Bola Tinubu.
He noted that these include increased budgetary allocation, Public-Private Partnerships (PPPs), international collaboration, leveraging Ministry Agency contributions, and launch of the National Social Housing Fund.
He disclosed that the three Renewed Hope Cities in FCT, Lagos and Kano were all being funded through a PPP that the ministry signed with a consortium of developers for the delivery of 100,000 housing units nationwide.
Dangiwa explained that under this strategy, the developers source land and construction finance while the government creates an enabling environment for them to deliver housing.
He said: “So far, the ministry has facilitated a N100 billion bankable offtaker guarantee by the Federal Mortgage Bank of Nigeria (FMBN) for the Karsana Renewed Hope City.
“This has enabled developers to mobilise over N40 billion in financing—a first in the history of Nigeria’s housing sector.
“We have also made cross subsidy a key part of our efforts to enhance affordability for low-medium income earners to foster integrated living.
“Under this concept, the housing units built in the Renewed Hope Cities will be sold at commercial rate.
“Also, a substantial percentage will be sold at concessionary rates to low- and medium-income Nigerians who are members of the Nigeria Labour Congress and the Trade Union Congress.
According to him, the ministry embraced PPPs because the nation’s housing deficit is vast and cannot be funded from budgetary allocation alone.
The minister confirmed that the country needed to build approximately 550,000 units annually over the next decade to close this gap, and this would require about N5.5 trillion per annum.
“However, we recognise that PPPs alone cannot deliver Renewed Hope Affordable Housing for the majority of Nigerians.
“This is due to the high costs of private-sector construction financing, which significantly increase housing prices.
“For example, a one-bedroom apartment at the Renewed Hope City in Karsana, built under a PPP model, costs about N22 million.
“However, a two-bedroom unit under the Renewed Hope Estates, funded through budgetary allocations, costs about N12.2 million.
“The difference lies in the cost of finance. Under the Renewed Hope City model, developers purchase the land, secure financing at double-digit interest rates.
“While as a government, we facilitate a Bankable Offtaker Guarantee from the FMBN.
“In contrast, Renewed Hope Estates are funded with interest-free allocations from the budget. State governments provide free land, and infrastructure costs are subsidised and excluded from the housing unit prices.
“These factors account for the significant price disparity between Renewed Hope Cities and Renewed Hope Estates,” he said.
According to him, there is widespread recognition that the current N50 billion annual budget for housing is grossly inadequate, compared to the N5.5 trillion required annually to address the housing deficit.
Dangiwa said, to this end, the ministry had engaged the National Assembly leadership and received their support for increasing the annual housing budget to a minimum of N500 billion, starting with the 2025 budget cycle.
He expressed hope that this would allow the ministry to expand housing projects to cover the remaining 18 states and increase the unit count per state from 250 to at least 500, as initially planned.
The minister acknowledged that funds put into housing construction are revolving, because the houses will be sold and the money put back in government coffers for subsequent housing construction.
He noted that beyond this, housing construction plays a huge role in job creation and poverty alleviation, adding that this huge economic impact must be put into proper context.
“The housing sector’s potential as a driver of economic growth is evident in the job opportunities that the Renewed Hope Cities and Estates Programme have created.
“At an average of 25 jobs per house, the ongoing projects have directly and indirectly generated over 252,800 jobs for Nigerians, including skilled and unskilled workers.
“At an average daily wage of N5,000, many workers are earning over N150,000 monthly, which is far above the national minimum wage.
“From professionals such as architects, civil engineers, surveyors and skilled workers like masons, carpenters, electricians, plumbers, steel fixers, welders, labourer, security personnel, concrete pourers and excavation workers, the Renewed Hope Cities and Estates is unlocking the potential of housing construction.
“This is because it servea as a veritable source of good paying jobs that are taking our youths off the streets and reducing the temptation to indulge in criminal activities,” he said.
In her welcome address, PEWAN’s Chairperson, Mrs Okwy Iroegbu-Chikezie, said that Nigeria had become entangled in the twin issues of housing deficit and high vacancy rate in the real estate sector which appears as an anathema.
Iroegbu-Chikezie, stated that with increasing cost of building materials, occasioned by high inflation, interest rates and the excruciating impact of the present economy, homeownership has become an enormous challenge to many.
“It is therefore our expectations that the conference will provide opportunity for experts and stakeholders in the real estate to chart pathways towards increasing housing provision in the country to bridge housing deficit,”she said. (NAN)
NEWS
Yuletide: Bode George Urges Tinubu to Reduce Petrol Price
Chief Bode George, a former Deputy National Chairman of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to reduce the price of petrol to N300 per litre ,to make things easy for Nigerians during the festive season.
George, the Atona Oodua of Yorubaland, made this plea at an interactive session with newsmen on Wednesday in Lagos.
The price of Premium Motor Spirit, popularly known as petrol, is currently above N1,000 per litre.
According to the elder statesman,Nigerians are going through hardship, the President should give an order to reduce fuel price, specifying time frame the people will enjoy such window of relief.
He said that the federal government as well as well- meaning individuals and businesses could bear the cost of such price slash , to bring happiness to all Nigerians.
The PDP leader, who noted that December and January are special months , said that such gesture could start from the middle of December and run through January.
“I have been thinking, as a Nigerian, what can we do because the anger and the hunger are almost equal on the streets of Nigeria.
“What am I suggesting is that Mr President should sit down with his managers and give an order that from the middle of December to the end of January, the cost of petrol will be N300 per litre.
“The government can absorb the losses in the interest of the suffering people.
“If they (government) want others to contribute, let us know how much that is going to cost and ask people to donate, to bear the cost.
“We will be sending a lot of messages of happiness across the tribes and homes.
“Everybody in Nigeria will be happy because it will positively impact on this period of the year. It is a challenge and he (Tinubu) can do it.
“We need this in this December and January to put smiles on the faces of Nigerians, ” George, a PDP Board of Trustees (BOT) life member, said.
Advising the President to take further measures to bring relief to the people, he said that the gesture would crash prices of essential commodities and services for the benefit of all .
He said that government’s efforts should be concentrated on reducing high inflation rate, unemployment, poverty and youth restlessness in order to create a better future for Nigerians
Speaking on the recent presidential election in Ghana, George noted that Nigeria’s electoral system needed reforms to guard against electoral frauds and manipulations.
According to him, the nation will continue to grope for development if the system fails to encourage best candidates to emerge.
Stating that election must reflect the wishes of the people and be devoid of religious and tribal sentiments, George said that Ghana election should be a wake up call for Nigeria.
“INEC performance must improve. The commission must make sure that the voice of the people is heard in elections.
“Electoral offenders should be made to face the music and sent to jail. We must be very firm about due process, credibility and transparency in elections,” he said.
Urging the President to revisit resolutions in the 2014 Constitutional Conference, George said that the current constitution was not federal in principle and practice.
“We should not deceive ourselves, the constitution is a problem. It is a military constitution, it is not democratic,” he said.
George called on the National Assembly to ensure devolution of powers and electoral reforms that would do away with manual collation of election results and mandate electronic transmission of election results from polling units.
George disagreed with political watchers saying no vacancy in presidency in 2027.
On the dwindling strength of the former ruling party, George, who noted that all organisations had its ups and downs, said that selfish interests and disregard for party rules remained PDP’s major challenge.
He said that PDP could bounce back and win presidential election if the leadership decided to elevate national interest above selfish interests and adhere to the party’s constitution.
“We will tell ourselves some serious old truth. We messed ourselves up. ” he said.
Stating, however, that the PDP was not dead, George said that lack of justice, equity, fairness and the inability to adhere to the party’s zoning and rotational principle cost the party victory in 2023.
Calling on the party’s founding fathers alive to wake up and rescue the party, George said that Nigerians were still waiting for the former ruling party to take over power and put things right. (NAN)
NEWS
Tinubu Set for Groundbreaking of Renewed Hope City in Lagos
President Bola Tinubu, is set to perform the groundbreaking of 2,000 housing units of the Renewed Hope City in Ibeju Lekki, Lagos, in the next few weeks.
Mr Ahmed Dangiwa, Minister of Housing and Urban Development, announced this during an official assessment visit, on Wednesday in Lagos
Dangiwa said Lagos would represent the South-west, while the president would do that of the North-West in Kano, before doing that of the four other regions.
“Arrangements is already on ground, we have gotten sites, and work has commenced for 2000 houses in the Renewed Hope City that we intend to build in Ibeju-Lekki,” he said.
Towards achieving the set goal, the minister said the visiting team also paid a courtesy visit to Gov.
Babajide Sanwo-Olu to discuss area of collaboration between the federal and state governments.He disclosed that the federal and Lagos state governments had agreed to set up a Tripartite committee and ensure all the issues of concerns between the parties were resolved amicably for the benefit of all.
Earlier, the Minister embarked on an assessment visit of deplorable Federal Government buildings and assets across Lagos state in a bid to commence rehabilitation on them in a few months.
Dangiwa said the rehabilitation was necessary as the deplorable buildings posed a challenge and security concerns to the Lagos state government. (NAN)
NEWS
Gov. Alia Presents N550.1bn as 2025 Budget Estimate to Benue Assembly
Gov. Hyacinth Alia on Wednesday presented the sum of N550.1bn as the 2025 appropriation bill to the Benue State House of Assembly for consideration and passage into law.
Alia told the lawmakers that out of the total budget size, N175.4 billion is for recurrent expenditure while the N374.
7 billion is for capital expenditure.The governor said that the total estimate represented a 47.
5 per cent increment over the 2024 revised and approved figure of N373 billion.He stated that the appropriation bill tagged “Budget of Human Capital Development, Food Security, and Digital Economy” was to consolidate the gains made in 2024.
Alia further explained that the proposed recurrent expenditure of N175.
4 billion was 13.55 per cent higher than the previous year.According to him, budgeted capital expenditure of N374.7 billion represents a 71.5 per cent increment on the 2024 revised capital expenditure.
“The budget breakdown indicated that the sum of N212.2 billion, representing 38.52 per cent is for administration; N196.6 billion, representing 35.68 per cent is for the economy; law and justice will take N26.6 billion, representing 4.84 per cent while social welfare will gulp N115.5 billion, representing 20.96 per cent.
“We have the vision. We have the will. And most importantly, we have the people ready to work alongside us to turn this vision into reality.
“Together, we will build a state where every citizen has the opportunity to succeed, where food is plentiful, and where the digital economy opens new frontiers of opportunity for all,” he said.
The governor said the intention of the government was to stay within the limits of its recurring revenue to build the state without accruing unnecessary debts for generations unborn.
He, however, said that since the 2025 budget was a deficit one, it proposed a borrowing plan of a conservative sum of N26bn, representing a modest 4.7 per cent of the proposed aggregate expenditure for 2025.
“This is lower than the state’s debt-to-GDP ratio of 8.2 per cent which is within the benchmark of the 25 per cent debt sustainability threshold.
“Despite these favourable debt ratios, I want to reiterate that borrowing will only be considered as a last resort and for regenerative investment purposes,” he added.
Alia stated that the problem of Internally Displaced Persons (IDPs) remained a challenge, adding that they have reasonably improved their living conditions.
He said the Bureau of International Cooperation and Development has elicited substantial grants from donors, totalling N85bn. (NAN)