Africa: Nigeria scored low in mortgage

Nigeria has been ranked low among countries in the area of mortgage penetration and depth for home-ownership in Africa.

According to a report by Senior Advisor, UN-Habitat, Dr. Xing Guan Zhang, out of 31 countries ranked for the exercise, Nigeria took 27 position, scoring 0.3 per cent in mortgage penetration ahead of Guinea, Senegal and Burundi.

In the report, Malawi, Djibouti, Chad, Mauritania, Mauritius, Tanzania, South Africa, Angola, Liberia, Ghana, Togo, Rwanda, Botswana, Zambia and Cameroun took first to 15th positions with 6.5 per cent, 6.3, 6.3, 6.1, 5.7, 5.4, 5.4, 4.3,3.6, 2.8, 2.3, 2.1, 1.8,1.8 and 1.7 per cents respectively.

In the area of mortgage depth, Nigeria was also scored low, ranking 10 with 0.4 per cent among 17 Africa nations considered for the exercise.

Countries such as South Africa, Namibia, Kenya, Botswana, Senegal, Rwanda, Algeria, Uganda and Cameroun were ranked 30 per cent, 20 per cent, 2.5 per cent, 2.3 per cent,2.0 per cent, 1.2 per cent, 1.2 per cent, 1.0 per cent and 0,5 per cent respectively ahead Nigeria.

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In his report on: “Financing and Developing Affordable Housing in Africa: What We Have Learned and How We Can Do Better”, Senior Advisor, UN-Habitat, Dr. Xing Quan Zhang, noted that mortgage penetration and depth were much higher in wealthy countries.

He said: “When inflation is high, the interest payment is high in real values in the beginning, but this declines over years, if it is a fixed-rate mortgage.”

Nigeria’s mortgage market has remained in slow growth due to a plethora of reasons, some of which are now being addressed in the new efforts, which involve major stakeholders in the mortgage industry.

The Nigeria Mortgage Guarantee Company (NMGC), Model Mortgage Foreclosure Bill, and the Uniform Mortgage Underwriting Standards for both the formal and informal sectors of the economy are the most outstanding of the new initiatives in the industry.

Also, partnership among the Central Bank of Nigeria (CBN), the NMRC and the Mortgage Banking Association of Nigeria (MBAN) is more than enough comfort for both investors and home seekers that it is a new dawn in the market.

To address the problems associated with land processes, the CBN is partnering with NMRC, which spear-headed the drafting of a Model Mortgage Foreclosure Bill, as well as MBAN and other strategic partners, to encourage the passage of a Model Mortgage Foreclosure Law in every state of the nation.

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The apex bank has also provided states with the draft MMFL, and has held an MMFL workshop with their key representatives to ease their task to passage of the law.

Meanwhile, the nation has a housing deficit of about 17 million units and its mortgage rates ranging between 7-10 per cent for the National Housing Fund (NHF) and between 15-25 per cent for commercial mortgage institutions, which is considered by industry experts as one of the highest in the world.

According to the National Bureau of Statistics, real growth rate of the real estate sector, real GDP growth recorded in the sector in first quarter (Q1) 2018 stood at -9.40 per cent, lower than growth recorded in Q1 2017 by 6.30 percentage points and lower by 3.48 percentage points relative to Q4 2017. Quarter-on-quarter, the sector grew by -30.57 per cent in the Q1 2018.

It contributed 5.63 per cent to real GDP in Q1 2018, lower than the 6.34 per cent it recorded in the corresponding quarter of 2017 and lower than the 7.03 per cent in the preceding quarter.

Dayo Ayeyemi 

 

Cities are engines for achieving sustainable development goals – Report

Majority of the global population now living in cities and their numbers growing daily, which have made cities inclusive, sustainable, resilient and safe as currently observed, is critical to achieving the 2030 Agenda and the Sustainable Development Goals SDGs, a high level UN meeting has noted.

The event was led by the UN Sustainable Development Group, UNSDG, last week at the High-level Political Forum, focused on how the cities of the world are accelerating progress towards the SDGs, as well as showcasing how SDGs’ implementation in cities can contribute to transformation towards sustainable and resilient societies.

One of the cities in the world The chairperson of the meeting, UN Deputy Secretary-General and UNSDG Chair, Amina Mohammed, revealed that “Cities are economic powerhouses with an estimated global GDP share of 88 per cent by 2025. “

However, cities are also locus of complex and interconnected challenges, producing more than 50 per cent of the world’s greenhouse gas emissions and using 80 per cent of the world’s energy. We need to get urbanisation right to achieve the 2030 Agenda,” she stated.

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The event provided a unique opportunity for member-states, city authorities and non-state actors to come together to showcase their own innovative work, and to illustrate how the UN system can support these efforts.

Bahrain’s Housing Minister, Mr. Basim Bin Yacob AlHamer; the Mayor of Bangangté, Cameroon, Ms. Célestine Ketcha Courtès, New York City’s Commissioner for International Affairs, Ms. Penny Abeywardena, the President of United Cities and Local Governments, Mr. Parks Tau, and the Chair of the international women’s grassroots network Huairou Commission, Ms. Violet Shivutse, discussed how cities and local actors are championing the sustainable urbanisation agenda.

UNDP Administrator and UNSDG Vice-Chair, Achim Steiner, highlighted inequality within cities on issues like income, health, and education but said cities had enormous potentials in addressing climate change where they were already leading by example.

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He called on the international community to unleash the power of cities to help solve global challenges. Executive Director of UN-Habitat, Maimunah Mohd Sharif, told the meeting that cities are “in the front lines of nearly every global challenge we currently face, and they need to be at the centre of our strategy to solve them. Looking ahead requires new approaches – the “urban development of yesterday will not suffice,” she added.

Kingsley Adegboye

 

COMMUNIQUE OF THE 12TH ABUJA INTERNATIONAL HOUSING SHOW

The 12th Abuja International Housing Show
Abuja International Conference Centre
July 16-19, 2018
COMMUNIQUE
The 12th Abuja International Housing Show took place from July 16-19, 2018 at the International Conference Centre, Abuja with the Theme: Driving Growth and Sustainability in Nigeria’s Housing and Mortgage Markets – Improving Structures and Policies for Impact. All the Stakeholders in the housing sector were represented at the events which featured Conference and Exhibition of building materials with international representations from Kenya, South Africa, UAE, Turkey, Belarus, Canada, UK and USA including Ghana Deputy Minister of Works and Housing and Members of Parliament.

At the end of the Show, the participants resolved as below:
1. The meeting commended the Organizers of Abuja International Housing Show, Fesadeb Communications Limited for having addressed every facet of the Housing and Mortgage Market, but implore all Stakeholders to join hands with the organizers to develop future events to make the Expo the housing hub of Africa, that would attract an influx of participants from all over the world.

2. The meeting identified various Challenges that had resulted in the increasing housing deficit and called for renewed strategies and collaboration from all stakeholders to drive the growth and sustainability of Housing/Mortgage Markets in Nigeria.

3. The meeting noted the adverse overwhelming effects of the economic recession on the housing sector which had hindered government’s efforts in the delivery of its statutory responsibilities; thus saddling Estate developers with the burden of providing primary and secondary infrastructures, with the resultant high cost of completing housing units.The workshop therefore called on Federal and State Governments to grant tax rebate to developers to assist them in reducing the increasing housing deficit in Nigeria.

4.The workshop commended the recent transformation of the Mortgage Market by the Federal Government with the creation of the Nigeria Mortgage Guarantee Company (NMGC) to offer Mortgage Guarantee and Insurance which would assist to provide enhancement for both the supply and demand aspect of the housing sector and implored the Government to fast-track the Take-off of the initiative which would be to the benefit of the economy.

5. The meeting decried the creation of slums and deplorable living conditions of the people in major cities and urban centres in most African Countries as a result of poverty. It called on African leaders to create Urban re-development and renewal of such slums and shanties to become new cities having modern infrastructural facilities, and to ensure full participation of the existing residents in the rehabilitation in order to enhance their living conditions

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6. The meeting noted with dismay the inability of governments in recent times to repeat the provision of affordable mass housing of the 70s like the one executed by Jakande administration and called on all State Governments to adopt such policy of old to tackle current housing deficit in Nigeria.

7. The meeting noted that the informal sector constitutes about 83% of the working population, generating over USD178bn annually, contributes over 68% to the GDP and with over 80% of the labour force. Most people in this group however do not have access to the current formal mortgage facilities as a result of inability to gather requisites information to package them for mortgage. The meeting however noted that the Mortgage Banking Sub-Sector had developed Uniform Mortgage Underwriting Standards for the informal sector, so as to create access to the Mortgage Market.  It therefore commended the current restructuring and reforms of the Mortgage Markets which led to the creation of Nigeria Mortgage Guarantee Company to complement the Uniform Underwriting Standards for the Informal Sector among others aimed at de-risking and deepening the market. The workshop therefore called on the Central Bank of Nigeria to add more value to its innovation and creativity to achieve attractive and robust mortgage market comparable to what obtained in developed economies, through effective measures to bring down the Interest Rate on Mortgages to Single Digit.

8. The meeting Advocated for a new strategy where housing should no longer be seen as alleviating Poverty, rather to be regarded as wealth creation which would be achievable through Sustainable Housing Development and Financing Systems, with new management innovations in funding such as access to Pension Funds together with other Dermative; Instruments in support of Housing Development such as, Lines of Credit, Equity, Partial Credit Guarantee (PCG) and Partial Risk Guarantee (PRG), among others

9. The meeting identified the absence of Foreclosure Law as one of the dis-incentives to attraction of long time finance to the Housing and Mortgage Market and advocated immediate adoption of the Model Mortgage Foreclosure Law in all the States of the Federation to emulate Lagos and Kaduna States, as well as support from the Judiciary towards adjudication of Mortgage Disputes.

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10. The meeting Identified lack of effective data collection and collation as well as Market intelligence as one of the major factors that had adversely affected Financial Infrastructure in the Nigerian Housing Market. It then called for development of verifiable Data Base and Housing Market Information Portal currently being championed by the Nigeria Mortgage Refinance Company (NMRC) Plc. to enhance the evolution of Financial Infrastructure for Investment in the Sector.

11. The Meeting Noted that the global energy consumption is expected to increase by 37% (thirty seven percent) between Years 2015 and 2035 of which 96% (ninety six percent)would be attributable to Developing Nations; and therefore called for incorporation of Green Building Design Techniques, Technologies and Materials to reduce energy consumption and dependency on fossil fuels, with the negative environmental impact.

12. Resolved that Stakeholders should not relent in their efforts towards passage of the Mortgage and Housing related Draft Bills having effects on Affordable Housing that had been pending with the National Assembly for amendments since Year 2001:
 Land Use Act 1978
 National Housing Fund (NHF) Scheme Act 1992
 Mortgage Banks Act 1989 (Subsumed in BOFIA)
 Federal Mortgage Bank of Nigeria (FMBN) Act 1993
 The Trustees Investment Act 1962
 The Nigeria Social Insurance Trust Fund (NSITF) Act 1993
 The Insurance Act 2002
 The Investment and Securities Act 1999
 The Federal Housing Authority (FHA) Act 1990
 Securitization Bill
 Foreclosure Law Bills – Residential Mortgage Act and Residential Mortgages (Incentives) Act.

13. The Meeting recognised the importance of Women in Nation Building, particularly with their passion for caring for others and resolved that providing Housing for Women is protecting our future. The workshop therefore called for empowerment of women in the Housing Sector, towards eradication of homelessness in Nigeria.

Experts seek governors’ ownership of mortgage foreclosure bill

To guarantee the provision of affordable and accessible housing for all Nigerians, experts have called on state governors to take ownership of the process of passage of the Model Mortgage Foreclosure bill (MMFL) into law and ensure the implementation of land administration.

They stressed the need for each state to draw up a road map for the passage and implementation of the MMFL bearing in mind the three pillars, namely; regulatory framework; collateral registry; education and public awareness.

According to them, it is desirable that this be done as soon as possible before the distraction of electioneering process later in the year.The call was encapsulated in a communique issued at the end of a workshop on model mortgage and foreclosure draft bill held in Abuja.

In the workshop organized by the Nigeria Housing Finance Program (NHFP) and its collaborating partners with the theme: “Creating an Enabling Environment for the Growth of the Housing and Mortgage Sector: The Need for Land & Law Reform”, the experts said, the passage of the MMFL and resolution of other land administrative issues needs to be escalated to influential for a such as the National Economic Council; Nigeria Governors’ Forum and the Attorney Generals’ Forum;

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They also stressed the need for political will across all tiers and levels of Government, to pass the Model law as well as address other land administration challenges in the housing and mortgage sector.According to them, there is need for increased collaboration amongst all stakeholders (the Executive; Legislature; Judiciary; Operators and Regulators) for effective policy formulation and legislation to engender housing and mortgage reform;

Apart from that, the participants stressed the need to automate land registries and land titling processes in all States for better coordination of activities and information sharing in the industry.Other resolutions reached by the participants include the need for interface between the Land Registry and Mortgage Registry in States where these registries are separate;

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They also want state governments to see discounts/reduction of statutory fees and rates as an incentive to increase Internally Generated Revenue as well as broaden the revenue collection base of the State. This underscores the need to emphasize the benefits of passing the MMFL as an incentive to the states.

Participants, drawn from state and national officers noted the Multiplicity of Laws governing mortgages in different States and difficulties & delays in Perfection of security Instruments due to requirement of Governor’s Consent under the Land Use Act, 1978;

They further stressed the need to expedite the process for obtaining Governor’s consent (by delegating the authority to more than one person) in respect of secured transactions or reassess/streamline the process to eliminate the delay in obtaining such consent so that transactions involving real property would be easier and more seamless; Beyond, the participants urged states to provide the necessary infrastructure and social amenities to make Housing Estates attractive to Investors; developers and potential homeowners.

In her remarks, Deputy Governor, Financial system stability, Central Bank of Nigeria, Mrs. Aisha Ahmad, noted the importance of housing , saying most people spend a sizeable amount of their income every year to provide a roof over their heads, while others commit their life savings to build a dwelling house over several years.

To address the challenges that have dogged the mortgage sector for decades., the NHFP and the Nigeria Mortgage Refinance Company Plc, she said, have developed a Model Mortgage Foreclosure Law (‘MMFL).She stressed that a key strategy of the NHFP is to work with willing pilot States in Nigeria to adopt and pass the MMFL into law and so far, two States, namely, Lagos and Kaduna States, have passed laws which are modeled after the MMFL with encouraging results and impact, while other States are at various stages of passing the law and implementing its provisions.

Bertram Nwannekanma

Dangiwa named mortgage finance person of the year sans decline

The Managing Director/Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Ahmed Musa Dangiwa has been named 2018 Mortgage Finance Person of the Year in the male category.

The award was presented to the FMBN CEO by the organizers of the Nigeria Housing Awards (NHA) at the closing ceremony to mark the end of the 12th Abuja International Housing Show, held at the International Conference Centre (ICC) Abuja.

The organizers stated that the award was in recognition of the ongoing aggressive and innovative efforts of the Dangiwa led executive management of the FMBN to reform and reposition Nigeria’s foremost mortgage finance institution so it can more effectively deliver on its mandate to catalyse the provision of affordable social housing to Nigerian workers.

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Specifically, they cited the ongoing N500 billion recapitalization drive of the bank to boost its capacity to create affordable mortgages which has received federal government and stakeholder wide support.

Other ground-breaking milestones recorded by the FMBN Management cited include zero equity contribution for mortgage loans that are N5million and below, reduction of equity for loans of up to N15million from 30 to 10 percent as well as increased tempo in the provision of housing loans to Nigerian workers under the National Housing Fund (NHF).

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Responding to the honour, Dangiwa, an architect thanked the organizers of the awards for the industry recognition.He dedicated the award to his executive management team and staff of FMBN for their support, contribution and hard work that is driving the very important work to restructure FMBN. He pledged to play the leading role in tackling the very high housing deficit but also building a strong and robust mortgage finance market.

He also expressed appreciation to the FMBN Board Chairman, Dr. Adewale Adeeyo and the Honourable Minister of Power, Works and Housing Babatunde Raji Fashola, for their continual support.The NHA is organized by Fesadeb Communications Limited, promoters of Nigeria’s biggest annual International housing industry event, the Abuja Housing Show.

Guardian

HIGHLIGHT OF DISCUSSIONS AT 12TH ABUJA INTERNATIONAL HOUSING SHOW

1.0 OPENING CEREMONY

1.1 OPENING REMARKS BY SURV. UGOCHUKWU CHIME, MEMBER, AIHS ORGANISING TEAM, 12TH ABUJA INTERNATIONAL HOUSING SHOW

AIHS is the place to be to enhance collaboration as effective collaboration efforts will ensure risks are reduced.To improve shelter provision, gross domestic product and create economic inclusion, stakeholders must stop working in silence.

Concrete real estate data is essential for growth of the sector to which partnerships with organisations like the National Bureau of Statistics and REDAN are in place to ensure realistic advantages are served the market.

The massive training in artisan and skill competency from the office of the Vice President and the CBN must continue to affect more people.

Chairman, AIHS organising committee noted that the convener, Festus Adebayo pursues excellence despite storms in making such a programme a continuous reality, thereby creating a difference with this laudable platform which has in turn provided massive success to for a wide range of construction businesses.

Mr. Festus has shown unfettered commitment to real estate development and has joined the likes of great political leaders such as Alex Ekwueme and Lateef Jakande who individualized and realised housing goals in their times.

Be inspired and fired for success at the 12th Abuja International Housing Show!

1.2 REMARK BY CHAIRMAN OF THE OCCASSION

SENATOR SANUSI DAGGASH, FORMER MINISTER OF PLANNING/CHAIRMAN, 12TH ABUJA INTERNATIONAL HOUSING SHOW

We have created institutions but have only been able to achieve interventions, which is but a speck in the desert.This is inclusive of present interventions by the government; however, it is unfortunate that the market has its own dynamics with low cost housing being swamped up by the middle class.

Lands in Abuja are so expensive, making it hard for people to provide their own housing in city centres where you don’t see major developments except with institutions such as the military and civil service agencies who are building for their retirees.

People need to leverage funds by simply walking into finance institutions but what is at play is that the private sector is still sourcing its own funds.

1.3 GOODWILL MESSAGES

1.31 BOSS MUSTAPHA, SECRETARY TO THE GOVERNMENT OF THE FEDERATION REPRESENTED BY THE PERMANENT SECRETARY

There is a demand that this gathering does not end up as another show of rhetoric as every stakeholder within the housing sector is in dire need of results.

The needful questions should be answered:

– Why are there so many empty houses in Abuja?

– Why are they not affordable?

– What does the government need to do?

– And what does the private sector need to do?

We need to design what works for us not necessarily works for others. This can be the use of alternate materials for housing development. It must not always be concrete.

As technology evolves, new innovations are coming up and we have to do a lot to harness it as the private sector.

UN Habitat has worked hard to see low cost housing and we need to pick their brains to understand what to do to harness mass housing.

 1.32 ENGR. ADEKUNLE MOKUOLU, PRESIDENT, NSE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

Government is not focusing on engineering infrastructure which is one of the biggest challenges. It is not using local minds, inputs or plants but rather, personnel are imported. This is despite the fact that Nigerian content is visible in housing delivery.

Building lifespan minimum should be 200 years but most of our houses reach stages for reconstruction and renovation in less than 20 years. So NSE wants to engage government fully to create innovative templates for housing delivery.

We all need to hold the stake to address the challenges of housing in Nigeria.

1.33 BDR. KENNETH NDUKA, PRESIDENT, NIGERIAN INSTITUTE OF BUILDING AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

Good housing enhances economic growth and we have come to see the benefits of synergy, collaboration and professionalism at the 12th Abuja International Show.

1.34 MR. ROLAND ABONTA, PRESIDENT, NIGERIAN INSTITUTION OF ESTATE SURVEYORS AND VALUERS AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

There is a continuous adhoc approach to housing in Nigeria which should not be so.

Master plan for housing is important and challenges are largely related to data.

Politicking should be separated from housing if there must be improvements and estate surveyors should be called upon to drive the growth.

Professionals should come together to advice government.

It’s shocking to see figures on housing hoisted on us from foreign organisations. When did they do surveys to know these figures?

We should stop inconsistencies in housing and begin to plan appropriately.

1.35 PRESIDENT, NIGERIAN INSTITUTE OF ARCHITECTS, ARC. FESTUS NJOKU ADIBE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

Bringing our attention to what we may have neglected which is having challenges in meeting the needs of the middle and lower income design-wise as increasing space, increases cost.

– Use of inherent local materials to bring affordable housing to Nigeria.

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– Working together will bring down housing deficit.

1.36 HEAD OF SERVICE, MRS WINIFRED OYO ITA REPRESENTED BY PERM SEC., MRS. DIDI AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

The choice of theme for this conference is apt addressing major challenges.

Improving welfare and wellbeing of Federal Civil Servants is part of the infrastructure plan.

Our goal is to enhance the value of civil servants by increasing access to affordable housing with engagements like FISH. Provision of mortgage facility with long term payment plan is critical.

Partnership with the FISH programme will present stakeholders the opportunity to partner so that Federal staff can own homes.

1.37 MADAM AMAL PEPPLE, FMR. MINISTER OF LANDS AND HOUSING

Housing creates both primary and secondary employment and like the agriculture sector, players need to blow the housing trumpet to increase investment participation within our sector.

1.4 ADDRESS BY GUESTS OF HONOUR:

1.41 MINISTER OF THE FCT, HON. MOHAMMED BELLO REPRESENTED BY DIRECTOR, AMMC, TPL. UMAR SHUAIB

Housing is a critical component in a nation and one of life’s most basic needs.Housing is a major subject of discussion among nations; primary to the instituting of global summits such as the Rio 1992 Habitat Summit and the Johannesburg World Summit in the 2000s amongst others.

The Nigerian government formulated the National Housing Policy in 1999 which was amended in 2004 with a more budget friendly approach and limiting the role of the public sector in order to bring in the private sector to provide affordable housing – acknowledging them as a key partner to housing delivery.

49% of the FCT area was allocated for housing development and since the late 90s, FCTA provided housing to the mass influx of people, which did not continue in the 2000s.

The Federal government initiated the Federal Housing Scheme, helping the FCTA provide infrastructure and land to private infrastructure development by private developers providing ancillary development.

Private developments were given letters of intent to access funds from mortgage institutions who in turn deferred charges to allow these private investors use their money to build these houses.

The FCTA considers the AIHS as its own, and the show has remained the pride of the FCT, bringing people from all across Nigeria and beyond.

Participants are implored to put heads together to generate sustainable ideas to the housing challenge in Nigeria.

1.42 DEPUTY MINISTER FOR HOUSING, GHANA, HON. FREDA PREMPEH AT THE 12TH ABUJA INTERNATIONAL HOUSING SHOW

Adequate housing is a fundamental right of all citizens.

We should explore the use of new technology in the use of building.We should be more innovative and creative to bring down the cost of buildings. In Ghana, container houses are raised within two days.

The Ghana ministry of works and housing welcomes initiatives of this kind (AIHS).Industrialisation and value addition should be brought into our discussions.We need to facilitate the growth of modern cities that puts together commerce and affordability.

In Ghana, our goal is to achieve the MDGs but know that our main constraint to housing delivery is the high cost. However, Nigerians living in Ghana make housing more expensive for 63% of the people.We call upon Nigerians to come and invest in housing and not just buy.

We had a poor land system but we have evolved into electronic lands by registering land titles within two days.

The government is acquiring land masses across the country to create mass housing projects and works and are working to ensure that even with this, housing projects are demandable by the people it is been called to serve.

As a lower-middle income country, the government understands the need for public Private partnership to drive growth with 40,000 and 100,000 units presently in place with two private partners.

Investment incentives include abolishing 5% housing tax while absence of long term mortgage finance is a key issue among a host of other innovative strategies.

Selfishness, corruption and self interest must be put aside to move the industry forward.

1.5 ADDRESS BY SPECIAL GUESTS OF HONOUR

1.51 HIS EXCELLENCY, GOVERNOR OF NIGER STATE, ABUBAKAR SANI BELLO REPRESENTED BY MR. MIKAEL EL-AMIN AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

The achievements of the government of Niger state includes creating a housing policy for the state, utilising data driven management of resources and the launch of the first UN Habitat pilot smart city in Suleja, amongst many other innovations. At the 12th Abuja International Housing show, the government is determined to extract the wisdom of all stakeholders in order to move the state forward with regards to housing.

 1.52 SPECIAL GUEST OF HONOUR AND THE EXECUTIVE GOVERNOR OF EDO STATE, MR. GODWIN OBASEKI REPRESENTED BY MR. FESTUS OSAGIE AT THE 12TH ABUJA INTERNATIONAL SHOW, AFRICA’S LARGEST HOUSING EXPO

The attestation to the calibre of dignitaries put in place by the show instils the fact that its long standing continuance has not been for fun. However, it is time to turn policies to implementable actions.Nigeria can grow its housing sector into a major contributor in the growth of its GDP.

Since the 70s, Nigeria has not been able to deliver 200,000 homes. Only 15-30% of Nigerians own their houses while others are in one form of lease arrangement or the other.We need interrogation of the delivery system, addressing the issue of long term housing system.In Edo state, only 2 estates occupying 200 houses have been delivered in the past 16 years and the clear challenges include policy and man-made issues.

Therefore, for the provision of adequate housing for everyone in the state needs the hands of all stakeholders to be on deck.We set out to cover a strategic dialogue as our goal with six pillars in place, with the topmost being infrastructure.

Innovations such as the creation of a metropolitan master plan for the four main cities in Edo state, Edo State geography development system to automate housing and housing ownership and moving housing to the state owned housing investment and development company, Edo State Property Agency which acts as a developer estate agent dealing with private, commercial and industrial estates within the cities.

Its priority is to deliver low income housing in the state, delivering almost 2000 housing units which have been sold to locals. It has a goal to establish the greater Benin metropolis area removing pressure from the city centres.

Joint venture with Mixta to deliver different affordable types to residents (mixta funds the estate, EDPA provides the land and both parties will sell the houses to Nigerians and the Diaspora).

Diasporas are also called into JV partnerships with Jara to develop Jara Mall (EDPA provides land, JDCL provides technical expertise). This partnership was done to remove political risk ensuring success regardless of who is in power.

It has been a huge learning curve for the government of Edo state and aggressive participation is called upon all to come and invest in Edo state.

1.6 AWARDS PRESENTATION

1.61 MR. MIKAEL EL-AMIN RECEIVING THE SMART CITY AWARD ON BEHALF OF HIS EXCELLENCY, GOVERNOR OF NIGER STATE, ABUBAKAR SANI BELLO

1.62 LIFETIME HOUSING ACHIEVEMENT AWARD TO MADAM PEPPLE

 1.7 ADDRESS BY CHIEF HOST

KEYNOTE SPEECH AND OPENING OF 12TH ABUJA INTERNATIONAL HOUSING SHOW:  HONOURABLE MINISTER FOR POWER, WORKS AND HOUSING BABATUNDE RAJI FASHOLA REPRESENTED BY HONOURABLE MINISTER OF STATE FOR POWER, WORKS AND HOUSING, HON. SULEIMAN ZARMAN HASSAN

AIHS has been painstakingly nurtured for 12 years to key into continuous housing development which is a core mandate of this administration.

The Federal ministry for power, works and housing is a partner with AIHS to ensure expanded housing affordability and accessibility. It is our goal to initiate a new brand of Nigerian housing and there is need for multilevel structures.

Industrialising the building industry by ensuring housing components are created locally is our goal. This includes creating jobs for artisans to ensure employment and we know that mass housing is the game changer the economy needs now.

1.71 AWARD PRESENTATION: HONOURABLE MINISTER FOR POWER, WORKS AND HOUSING BABATUNDE RAJI FASHOLA PRESENTED WITH AWARD AND REPRESENTED BY HONOURABLE MINISTER OF STATE FOR POWER, WORKS AND HOUSING, HON. ZARMA HASSAN

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Guest of Honour, Deputy Minister for Housing, Ghana, Hon. Freda Prempeh presents prestigious award to Babatunde Raji Fashola as the best performing Minister, Power, Works and Housing received by the Minister of state.

2.0 CEOs FORUM

THEME: FOSTERING COLLABORATION FOR EFFECTIVE HOUSING DELIVERY

2.1 BRIEF MESSAGE

JAN ZUIDHOF, WORLD CEO, SOLIGNUM, PARTNERS OF THE 12TH ABUJA INTERNATIONAL HOUSING SHOW COMMUNICATING HIS SPEECH AND VISION FOR THE SECTOR THROUGH THE BRAND

The international standard of the AIHS shows the attention given to housing in Nigeria.These efforts cannot be overlooked as professionals need to take full protection of building and wood. Solignum offers unequalled protection for building and is certified by NAFDAC and also covered by the royal seal.The company has had significant success in African countries such as Cameroun, Ghana, Malawi, SA etc. and looks forward to have continued success with stakeholders within the industry.

UNVEILING TRENDS IN HOUSING FINANCE AND MORTGAGE MARKET REGULATIONS

LEAD SPEAKER: XING QUAN ZHANG, CONSULTANT, UN HABITAT, UNITED NATIONS

FINANCING AND DEVELOPING AFFORDABLE HOUSING IN AFRICA: WHAT WE HAVE LEARNT AND HOW WE CAN DO BETTER.

DATA BRIEF

  • Population growth is faster than capacities in Africa.
  • It took 14 years to grow 1 billion population in the 80s and 12 years to grow 1 billion population in the 90s.
  • The fastest population growth is in Africa.
  • Lifespans are longer than previously.
  • There is lack of adequate resource to power cities and build more housing units.

This means ‘Population’ growth is one reason there is pressure on resources impacting housing.

GDP share of capital also affects growth as seen in the world wealth distribution where the share is getting smaller for African countries.Majority of Africans cannot afford formal finance as the continent is in a low income bracket.Share of households which can afford the cheapest housing units are average.

Finance Availability in Africa

  1. Development of mortgage finance

– In emerging market economies, mortgage debt is 9.4% incomparison with advanced countries at 61.4%.

– Penetration of mortgage is at 0.4% in Nigeria against South Africa of 30%.

2. Inflation rate can tremendously affect the building sector

– When inflation is high, contractors build less, leading to less supply of housing

– Low income earners cannot qualify for mortgage loans

3. Total mortgage lending

Mortgage finance company is not a determining factor to boost mortgage growth as in the case of Tanzania.

What are the solutions?

The questions are; who do you build for and where do you build?

  • Bringing down cost is bringing down the interest rate but with high inflation rate. So, you can’t bring it down or you crash the system. The real solution is to bring down the inflation rate.
  • Land: housing a system to build out land in England; they put land bank to release landwhen it is in highest demand.
  • Talent: Nigeria must produce talent e.g. Land Bank and AfDB CEOs are Nigerians.
  • Efficiency: This is key to delivering housing at record time.

2.3PANELIST SESSION

FEMI ADEWOLE, MANAGING DIRECTOR, SHELTER AFRIQUE

Regulations must increasingly play a role as markets gravitate towards segments where returns are higher – developers gravitate towards higher market ends.

Occasionally, you have to constrain policy to were you want it to go. There is a big obligation to use regulation to direct market forces. Planning system is the most significant tool in directing market forces.

Solutions include;

– Zoning systems: No permission can be granted for housing development if they do not meet certain regulatory demands e.g. in Abidjan

– Regulating Occupancy and use: Impose empty property tax on developers in order to divert market activities.

 KUNLE FALETI, FMR. MD, DIAMOND MORTGAGE BANK

Collaborations between housing professionals is greater than ever and more demand from the informal sector will drive housing finance.

Upper middle market issaturated with little room for growth.

Banks come up with solutions to housing finance;

– Offtaker finance has always been a challenge

– Mortgage finance will bridge the gap

DAVID GARDNER, CAHF

Housing is a sector of fundamentals such as land, finance and infrastructure.

10% of Nigerians can afford a $20,000 house; 30% of Nigerians can afford a $10,000; 50% of Nigerians can afford a $7,000 house.

The housing finance value chain includes;

– financing for land/land banking

– Takeout finance etc.

We are all focused on large scale but we can look at the following options;

– Massive small i.e. what does each household, community put into housing

– Information systems: we cannot change what we cannot measure

HAKEEM OGUNNIRAN, UPDC, MD

  1. Cost – We look at ultimate cost: the critical cost of the value chain is key.
  2. Construction Finance – Tap into long term financing from the capital market.
  3. Innovative finance – Looking beyond traditional means of financing in order to control costs and end price.
  4. Right environment: We see the difficulty in buying land, getting approvals, and payments etc. Separate windows need to be created to enable the right environment.

Objectives of the land use act is beyond charges and consent in collecting money.

ARC. AHMED DANGIWA, MD, FEDERAL MORTGAGE BANK OF NIGERIA

Solutions to foster effective housing development include;

– Easy access to land

– Increase of income

– Recapitalisation of the housing institutions for proper positioning

– Protection of public interest

– Protection of the market

– Regulation: Procedures to reduce high transaction costs

2.4 PARTICIPANTS’ COMMENTS

  1. Prof. Gbenga Nubi – All governments should have a master plan
  2. Mrs. Olajumoke Fashanu – Acquiring land and releasing equity in existing houses is key.
  3. Moderator – Mortgage Infrastructure deficit: The modern model andforeclosure law can be adopted
  4. Gardner: We need to find little projects and move forward.

3.0 PANEL 2

ALLEVIATING POVERTY THROUGH SUSTAINABLE HOUSING DEVELOPMENT AND FINANCE SYSTEM

LEAD SPEAKER: MR. EMMANUEL AKINWUMI, PRINCIPAL PRIVATE SECTOR SPECIALIST, AFRICAN DEVELOPMENT BANK (AfDB)

  • AfDB and its poverty reduction mandate
  • Financial sector Development Strategy, 2014 – 2019
  • Strategy and organisational structure
  • Instrument and scope of activities
  • Types
  • Possible impact of housing finance system

AfDBs 5 point Agenda

  • Light up and power Africa
  • Feed Africa
  • Integrate Africa: Less than 10% intra-trade in Africa
  • Industrialise Africa
  • Improve quality of life for the people of Africa

VISION

  • Increase access to underserved women and youth
  • Broadening and deepening Africa’s finance systems

FINANCE INNOVATION

  • Financial inclusion and intermediation division
  • Capital markets division
  • Industrial and trade development division

INSTRUMENTS

  • Loans
  • Lines of credit
  • Equity e.g. Shelter Afrique (18.07%), Pan African Housing Fund
  • Guarantee: Partial Credit Guarantee, Partial Risk Guarantee
  • Technical Assistance/Grants
  • Knowledge work generation and dissemination (MFWA – Making Finance Work for Africa). Student hostel should be part of affordable housing innovation

CAPITAL MARKETS

  • Money for affordable housing is hiding in capital market
  • New capital market product development
  • Development of an affordable housing finance sector
  • Support governments and municipalities
  • Poor training and HR building

It is bad to base housing on market rates and I find it hypocritical for the West to talk of housing and not include subsidy to enable the poor access housing.

Positive impact of Housing Development

  • Economy stimulation and improvement of economic growth
  • Inclusive access to finance, lower interest and longer tenure
  • Job creation of value chain
  • Increase in housing investment
  • Consistent growth in MSMEs and consumer wealth

3.1 PANELIST SESSION

Moderator: Mr. Kayode Omotosho, Executive Secretary/CEO, MBAN

Points raised;

– It is true that our housing GDP contribution is poor

– Alleviating poverty in Nigeria is demeaning; we should talk about wealth creation

– Collaboration is a goal in MBAN

– Copying Canada shamelessly resulted in NMRC

Rev. Surv. Ugochukwu Chime, President, REDAN

There has been a paradigm shift in home ownership approach as we see new entrepreneurs source for funding. They seek inclusion in order to derive strong exit strategy for their investments. There are not up to 60,000 mortgages when mortgage banks need a minimum of 10,000 units to break even. So the policy limits placed on them are bad for business.

– Inadequate legal and regulatory framework accounts for 29%

-Lack of political will accounts for 24%

– No financing available to developers on finance side

Abubakar Suleiman, MD, Sterling Bank

Land approved is on the high side. They need to subsidise the land as 20sqm can cost N20,000.00to register with government and developers are not father Christmas and will pass the bulk to buyers.

SONNIE AYERE, Chairman, MFWL

We underestimate a lot of the work being done in the sector. The journey has been long but there is progress. Looking at the 3 national mortgage finance companies, we need to come to celebrate what we have achieved and not act like nothing is being done. We don’t have to beat ourselves up year in, year out.

We hope to showcase an ecosystem of supply and demand in the 13th show realising that the money for housing is so scarce that we have to go out to look for that funding.

PROF MUSTAPHA ZUBAIRU; HEAD, NIGER STATE GOVERNMENT SMART CITY DEVELOPMET

We need to address these issues the way they should be addressed as all professionals look at their own challenges and leave others behind. The bulk of poor people live in slums but by our definition as experts, we consider their form of housing as substandard.

Experts in USA signed a moral agreement not necessarily a legal one to meet their 11 million housing goals. So as experts, we must talk collaboratively.

Prof Gbenga Nubi, Director, Centre for Housing Studies, University of Lagos.

More than half of all dwellers in sub-SaharanAfrica live in slums. All mindset should not go to newly built. Slum land can be expensive land and there truly is no slum land.

Tokenism is no comprehensive effort. Liverpool talks about housing regeneration.

Find solutions;

– Increase in minimum wage was 5-10% in the last 10 years

– No way to crash cost except you mass produce as an industry

– A total repackaging is needed i.e. how do we help people redevelop their housing?Jakande told us that Nigerians are not looking for housing but for flats

3.2 PARTICIPANTS’ COMMENTS

Moderator: We need to restrategise

Mrs. Olajumoke Fashanu: Rent to own is the way to go

Emmanuel Amosu, CIBN, USA Branch: AfDB should not talk poverty alleviation but eradication

Raymond, Kaduna State Mortgage and Foreclosure Authority: Welcomes everyone to invest in Kaduna state as they are one of the first states to adopt a foreclosure policy.

Prof Nubi: Resettlement of settlers to one quarter will leave 75% of real time, high priced real estate.

4.0 DAY 2 THEME: HOUSING FINANCE & MORTGAGE SOLUTIONS

NHFP Session at the Abuja International Housing Show

Session Moderator: Adenike Fasanya-Osilaja

4.1 PANEL ONE

TOPIC: BENEFITS OF A ROBUST AND EFFECTIVE MORTGAGE GUARANTEE PROGRAM FOR DRIVING INCREASED ACCESS TO LONG TERM, LOW COST HOUSING FINANCE AND HOME OWNERSHIP IN NIGERIA

LEAD SPEAKER: TOKUNBO MARTINS, DIRECTOR, OFISD, CBN

NHFP is a public private partnership with World Bank.

A guarantee mortgage is onewhich an identified third party takes responsibility for the loan if the borrower defaults.

Mortgage guarantee products to the market include documentation, underwriting, mortgage dispute resolutions etc.

Benefits of Mortgage Guarantee to Borrower

  • It has the capacity to encourage investor funds
  • Borrowers can become more qualified and knowledgeable

Benefits of Mortgage Guarantee to Lender

  • Expansion to new market resulting in deepening of the market
  • Reduction in capital adequacy requirements
  • Enhances access to financing portfolio, risk rating, securitisation

Benefits of Mortgage Guarantee to Government

  • It becomes more affordable to citizens
  • More people can meet their needs on their own
  • It creates better social inclusion
  • It enables the achievement of political and economic promises by politicians

The NHFP is tasked with the responsibility to tackle a myriad of problems burdened on the industry. It therefore partners with the industry in the development of policies designed to create innovative programmes.

One of such programmes is the NMCG; a proposed pilot to test the viability of mortgage products in the Nigerian market. CBN hopes to present the business plan for NMGC by the end of the year.

Some constraints have included:

  1. Land use
  • Partnering with NMRC to spearhead drafting of model mortgage foreclosure bill
  1. Mortgage adjudication process
  2. Standardization processes
  • Adopted uniform underwriting standard
  • NMRC has launched MMS platform; a national data information management system
  1. Cultural biases towards mortgage loans include all types of religious and traditional stigmatizations
  2. Lack of knowledge on mortgage
  • Creation of the MY OWN HOME SCHEME campaign

All industry players are called upon to invest in education and advertising.

4.2 PANELISTS SESSION:

Questions & Answer Sessions

  1. Ghana Deputy Minister for Housing: Why are we still struggling despite what we have in place?

Sonnie Ayere: It is a list of solutions we are implementing over time. We are raising more capital and are making slow and steady progress. Various states in Nigeria are about passing the mortgage foreclosure law and some have already passed it.

Adeniyi Akinlusi: Creating awareness includes social media, print and TV adverts to address different strata in the society. There is a 30% debt to income ratio for the formal sector at present; the informal/non-income sector and the diaspora are being looked at with intending different debt ratio for each segment. With a mortgage guarantee, we become more lenient in dealing with consumers.

Adedeji Adesemoye: Young people are encouraged to plan to own homes as they plan to buy cars

  1. How do you control giving opportunity to others who need to access housing?

Tokunbo Martins: Many people in the informal sector can afford mortgages, it’s just that they don’t have organised information as the people in the formal sector.

Adeniyi Akinlusi: Younger people are targeted to become homeowners as they are more entrepreneurial than the older generation. Between the ages of 18 – 35, they engage in all kinds of jobs; fashion, music, entertainment etc., just to make a living.

  1. Nigerians do not believe in mortgage, how do we make this real to them?

Adeniyi Akinlusi: Campaigns to a younger and informal sector must be sustained. This market remains a growth reserve for the industry. Trade unions and cooperatives can make impact since they have influence on the markets

  1. Are there states raising funds for participating institutions to enable them build and sell to civil servants?

Sonnie Ayere: Government is responding adequately on the supply end and they are expecting demand.

4.3 PANEL TWO

TOPIC: MANAGING UNINTENDED NEGATIVE CONSEQUENCES OF THE 1978 LAND USE ACT ON THE NIGERIAN HOUSING SECTOR

SPEAKER: MR. ADEDEJI ADESEMOYE, HEAD PAT/DD OFISD, CBN

A mortgage market in any country is developed by a reasonably functioning primary mortgage. We must have mortgage and title registrations, insurance regulations, guarantees from Banks; we must have information that provides sales prices, mortgage portfolio experience and pricing model.

For primary mortgage market, we must have lending, loan services, condominium law, strong economic policies, covenant political support etc.

The Nigeria Housing Finance Programme (NHFP) was started in 2014 and closes 2018.

To maximise the impact of the market, the government is coming up with solutions such as smart subsidy to ensure it meets social demand.

The land use act of 1978 is the most critical constraint in mortgaging.

Challenges of mortgaging include;

  • Multiplicity of laws in different states
  • Exorbitant costs in the perfection of mortgages
  • Delays in judicial driven rights such as foreclosure: collaboration with the Nigerian judiciary to lend support to mortgage reform and to review the old laws in order to pass new ones.

The model mortgage and foreclosure law has been passed by the Lagos and Kaduna state governments in 2010 and 2017 respectively with the cost of mortgages in Lagos reducing from 5% to 3%.

Impact of the Model Law

  1. It enables Kaduna state attract $250 million investment from the World Bank
  2. It provides legal underpinning for the Affordable Home Scheme opportunity for at least 200,000 persons to own homes through mortgage for the first time
  3. Potential to reduce model guarantee premium
  4. Using administrative process to ease the burden of obtaining government consent.

Benefits of the Model Mortgage Law

  • Increases the ease of doing business
  • Leads to growth in housing stock increasing access to finance for citizens and taxable income

Prospects and Potential of the Model Mortgage Law includes the Federal government of Nigeria and NHFP working to invigorate the national housing sub sector

4.4 PANELIST SESSION:

Questions and Answers

  1. Do owners have automatic right to renew their land if it expires?

Suleyman: Managing the unintended consequences of the land use act is where we presently are; it does not mean you do not own the land when it expires, you get first right to renew after 99 years.

4.5 SESSION 3

UNIFORM UNDERWRITING STANDARDS FOR INFORMAL SECTOR

TOPIC: ENABLING ROBUST MORTGAGE MARKET & FINANCIAL INCLUSION THROUGH UNDERWRITING STANDARDS

MRS. AGNES TOKUNBO MARTINS, DIRECTOR, OFISD, CBN

4.6 PANELIST SESSION

Arc Ahmed Dangiwa: NDIC has assisted FMBN to reduce debt.

Adeniyi Akinlusi: Working closely with CBN, we did something different by ensuring mortgage banking remains profitable and sustainable. To do this, we deepen the market which is risky. Other states didn’t have sustainable income like Lagos and Port Harcourt, so de-risking was key by creating standard underwriting processes. Looking at the peculiarities of the local market, even people in the formal sector may not be able to access it. Fixing interest rate, issue of foreclosure etc., has put us in the right direction.

David Gardner: Owners of financial institutions can review how they do business.New scoring mechanisms such as assessments on specific professions rather than those income brackets are needful.Construction loan is critical to growth of the sector; we should think of property for business i.e. using our homes as offices and also think of our properties as business as well. We should think of housing from a finance system approach.

Sam Odia: Practical deployment of underwriting standards has seen Millard Fuller work with low standard and minimum income wage earners.

4.7 PARTICIPANT QUESTIONS:

Princess Folaji: How can you bring the Diaspora in the mortgage picture despite these challenges?

Kunle Samuel: What is NMRC doing in terms of underwriting standardization?

Answers:

Charles Inyangete: We need less of transactional thinking i.e. bringing informal and formal sectors into the ecosystem. We need to think beyond what others think is practical as a driver of the economy. This is a transformational mindset that will lead us to addressing the challenges in the housing sector.

Adeniyi Adelusi: Underwriting standardization for the Diaspora is available.

Umaru Ibrahim, MD, NDIC: Diaspora window was being created except for some regulatory issues with CBN. FSS2020/CBN/NMRC & African Diaspora are signing a partnership to enable investment in housing.

Kehinde Ogundimu: Uniform Diaspora standard underwriting is presently taking place.

Adeniyi Adelusi: With housing, the dots can be connected. Access to mortgage is as easy as tax registration.

Kunle Faleti: Nigeria should not go to mortgages for the Diaspora now until there is a proper underwriting system in place locally.

Arc Aduku: I believe between Millard Fuller, FMBN, CAHF, we can move into the interiors.

4.8 SESSION 4

SHOWCASE OF THE NMRC’S HOUSNG MARKET INFORMATION PORTAL

4.9 TOPIC: THE CASE FOR FORMWORK TECHNOLOGY

SPEAKER: MR. JIDE ODUSOLU, CEO, OPIC

Recommended solutions:

  • We can defer payments as a government entity but private investors can’t do this
  • We use aluminium formwork, making us deliver cheaply
  • Density helps to reduce cost ; the use of tech in construction e.g. form tech
  • Make mortgage for 1st time home below N15 million, a tax deductible expense.
  • Provide concessions/rebates to developers for provision of primary infrastructure.
  • Provide concessions on fiscal terms for affordable homes development and critical supply items.
  • Looking at our training programmes, we do not have a workforce; we have no decent work delivery, no good vocational system etc. it is only in Nigeria where employees resume work without adequate training.

5.0 DAY 3 THEME: WOMEN IN HOUSING SECTOR SESSION

WOMEN IN HOUSING SECTOR INITIATIVE

5.1 WELCOME REMARK

MRS. ADENIKE FASANYA-OSILAJA, FOUNDER, WIHSI

Women in Housing Sector Initiative (WIHSI) serves as a platform for training of women and other marginalized people in the society. Women have been subjected to one form of discrimination or the other. They are subjected to loss housing as a result of various catastrophes that happen in their lives and this initiative is here to help women do better.

Men are highly appreciated for coming out to the women in housing intiative. Three men were approached with this idea and all of them said they had been waiting for something like this and here we are. Without Mr. Festus Adebayo, the Abuja International Housing Show Convener, this wouldn’t have been possible. So we are grateful for all the men here today.

5.2 KEYNOTE ADDRESS

TOPIC: EMPOWERING WOMEN, EMPOWERING OUR FUTURE

KEYNOTE SPEAKER: MALLAM IBRAHIM ALIYU

I was influenced by a woman, having a grandmother who was passionate about business and education within the Bwari community. She ensured I was educated. So this was my influence in believing in the influence of women. Women can multitask, are competitive, good marketers, and managers of resources. Women make sure that the most important things get done. So when it comes to women in housing, I believe women will do well. From my experience, in terms of planning and project management, women do a great job in this sector.

I personally don’t understand why it should be women in housing because I don’t see gender. Women are going into all kinds of male dominated fields including engineering. As CEO, Urban Shelter, Saadiyat Aliyu who is my daughter has done well. From a N10 billion debt when she came in we have recorded revenue of over N10 billion and reduced our debt to N2 billion, which is very current.

With the prime minister of the UK and Germany being women, I look towards a woman becoming the President soon, hopefully in my lifetime. I am sure you will understand why I am saying this. Women need to be paid as much as men in the industry and men need to support women with this goal.

At Urban Shelter, 32% of staff are women and 40% of women are in operations, delivering projects and 40% of people on our board are women. Mckinsey says companies with women on board have a tendency to make over 20% higher. 28% of houses at Urban Shelter are bought by women and 100% of those bought are influenced by women.

It is therefore important for women to be educated in skills that enable them build, sell and buy houses. Other women should be called upon to add their knowledge to WIHSI such as the initiator of FISH and Mrs. Alozie.

5.2 PANEL SESSION ONE

Chinwe Ajene Sagna: More gender diversity can translate to higher productivity, innovation and good management.

5.3 TOPIC: WHY WOMEN IN HOUSING?

SPEAKER: Adenike Osilaja

There a lot of evictions happening to women especially those who lose husbands to death or divorce. On divorce, women are worse hit being sent to the streets. The children and even sometimes their mothers translate into touts and prostitutes.

WIHSI is an NGO formed to create a platform for women. Our initiative is Housing Women-Housing Our Future; we are operating at different education levels to bring women into housing and financial inclusion.

‘Operation Own Your Home’ is an initiative to enable women own their own homes. Any woman who achieves home ownership through subsidy, cash or mortgages can be registered under this scheme to enable her earn credits and offset her payments.

Our benefits include; financial training and certifications, financial education as regards the benefits of having a new home, entrepreneurial education and how to use the home to make money.

We are partnering with Trust Bond Mortgages whose founder has been our backbone to help women own homes. We are calling on companies, NGOs etc, to help them identify, vet and provide them responsibilities to enable them help women own homes.

The National Assembly is working to deliver 6,000 houses and we are asking for 500 units. Urban Shelter is on course to supporting our initiatives and other companies can come on board to give e.g. 20% discounts to women for maybe 5-10% houses. So, today is the birth of collaboration.

5.3 PANELISTS SESSION

Chinwe Ajene-Sagna: Given the speech we’ve heard on empowering women, empowering our future, what comes to mind?

Uzor: Listening to the keynote speech, women inclusion in decision making especially in housing is key. In my business, 60% of my board of director are women. Bringing in women, introduces a quality mix.

Chinwe Ajene-Sagna: What steps do women take to be empowered in housing ownerships?

Yemisi Odunobi: It is as simple as asking as many questions as possible. As an engineer and project manager, it is really about using human resources to achieve your goals, by making people work for you instead of doing the job yourself. Finding a mentor in your field and one not in your field; you need people who understand technical competence and understand how to navigate and these mentors don’t have to be women.

Chinwe Ajene-Sagna: How do you believe women can be empowered especially in housing?

Nike Osilaja: Women pull together resources of the household; knowledge is important so the girl-child should be empowered with the information they need to own their own homes.

5.4 PANEL SESSION TWO

TOPIC: HEALTH AND WELL-BEING: CRITICAL TIPS FOR EMPOWERING WOMEN IN PROFESSIONAL ENTERPRISE

SPEAKER: PROFESSOR ANUMAH

We seek knowledge to remain in a balanced state at all times. We need to screen for lifestyle disease.

Factors responsible for diseases include;

  • Environment factors: Diseases influenced by surroundings
  • Non-modifiable factors: age, gender, race, hereditary factors
  • Modifiable factors: what we do to ourselves; how we eat, live, it is basically abuse to the body.

To retain health, we are expected to burn whatsoever we take in daily.

5.4 PANELISTS SESSION

MODERATOR: SA’ADDIYA ALIYU

Questions

  1. What are the major factors hindering women from home ownerships?
  2. What are the culture norms and traditions holding women back from owning houses?
  3. How do we solve these problems and what are your contributions?

Answers

Sam Odia: We are a Christian organisation; we do not discriminate against any faith or gender. We understand women challenges in terms of evictions and work hard on women empowerment. This includes Beatrice our first woman mason. The major issues are cultural and traditional as women don’t feel they should step into a man’s role.

Adeniyi Adelusi: Economically empowering women is essential and income is an issue in terms of home ownership. So we need to support women more as they dominate the informal sector and cannot really access institutional funds. So a uniform mortgage underwriting standard for the informal sector will empower women. We encourage men to get homes and titles in the names of their wives; we support rent to own and even expensive rentals and lease agreements.

Kola Ashiru Balogun, MD, Mixta Africa: Site where we have women project managers, we have very few issues. We have women completing hoses in two weeks. Initiatives like the WIHSI help change the narrative and Mixta Africa will fully support the initiatives.

Adenike Osilaja: We are asking for CSR to support WIHSI from corporate in the housing sector.

5.5 PANEL SESSION THREE

TOPIC: WOMEN ISSUES IN PROFESSIONAL ADVANCEMENT – “HOW I MADE IT”

MODERATOR: MRS. UZO OSHOGWE, CEO, AFRILAND PROPERTIES

Uzo Oshogwe: What challenges did you experience and how did you overcome it?

Mercy Iortyer: (Past President, Women Surveyors, first female president of the Institute of Quantity Surveyors)There are definite challenges working in a male dominated sector; poor networking is also prevalent which can be misconstrued as flirtatious; balancing work with family life. However, to remain a leader in the profession, working hard and believing in you is essential to success. You must initiate and see what you can do to build your community.

Saadiyat Aliyu: There is the self-sabotage that we do especially when your background is not even in housing. Look for how you can mitigate this inner voice. It is necessary to learn as much as possible.

Uzo: Do you still feel there is a glass ceiling and how have you broken it?

Urban Planner: I did a certification to be relevant in procurement. It is never too late to make changes as I made this change at 50. I left the UK to apply for a Federal Government job and have worked here for 33 years. Be the best where you find yourself.

Uzo: Leadership must promote women empowerment and what did you do to promote women empowerment?

Chi Akporji: I worked across the world for the World Bank and with that have been in women empowerment for years; helping women know how to raise financing for their business. I came back to Nigeria through Okonjo Iweala, the coordinating minister of the economy. We enabled women become pothole fillers in Kaduna. We got loans to birth NMRC and the Nigeria National Finance Programme. It is very lonely at the top as a female Director. As NMRCs social responsibility, we train IDPs on basic artisanal skills such as bricklaying, tiling etc., and we involve young girls and women through this.

5.6 SESSION 2

STAKEHOLDERS’ SESSION: KNOTTY ISSUES IN HOUSING DELIVERY

LEAD SPEAKER: SAM ODIA

We started at building houses for people with zero profit and interest for low income people. The money was grant from Millard and the Fuller centre, charging people for only the cost of the house. We are now building in a more sustainable way with loans and a small profit margin. 77% of Nigerians earn less than N40, 000 a month. Affordability is the state of being cheap enough for people to buy and affordability is determined by the market.

In home costing, there are 5 elements; cost of building, labour, infrastructure (lights, roads, water etc.), and land cost, overhead planning cost etc. the size of the building determines the cost. We need to manage our houses as size and complexity of design determines how expensive.

Cost breakdown – building materials: 77%, infrastructure: 23%, land:13%, overheads: 10%, compliance: 4%, profit margin: 24%, preliminaries (mobilization/demobilisation): 4%.

At Millard fuller foundation, 3 months cycle is the standard time for home delivery.

5.7 PANELIST SESSION

MODERATOR: COLLINS NWOSU

Rev Ugochukwu Chime, President, REDAN:Inability to grasp what the problems are over the years; 30 years ago, the housing industry was uncharted. People seek developers to outsource to because of time constraint. Secondly, they need money to fund their houses and thirdly, they want the right laws to protect them. These laws were tilted towards the off-takers which led to a lot of failures.

In housing development, the core issues were getting titles which some states easily give now but it was very difficult 10 years ago especially in the FCT. Spiritual and cultural issues also held us back from developing in some areas.

 Prof Gbenga Nubi: The Role of Government in Housing;

Jakande built 16 estates with 40,000 housing units in 4 years and 3,000 units in Abuja as Minister of Housing. He was able to sell at N2,500 to N4,000. He achieved this because it is the responsibility of any responsible government to provide land and infrastructure. He created bulk purchasing companies from appliances, by so doing crashing the prices. He used the same 1978 Land use act to achieve this. It is not in the land use act that certain amounts should be charged for C of O.

Mr. Toyin Eniola, Association of Housing Corporations of Nigeria:In the beginning, government was the singular provider of housing but politicking and corruption ran down the process in 1979. Governments began to inflate prices by bringing their own suppliers and contractors. They formed parallel agencies from the states’ housing agency in order to benefit themselves. As an association, we want to engage in public private partnership to raise finance and deliver housing.

David Gardner, CAHF: Scaling development is essential and households will provide their own housing.How do we galvanise housing economy and the economy of housing? We need to unblock value chains to increase the flow of finance. My focus is with larger targets that can scale financing. As a LG, Cape Town has gone ahead to raise a green bond of 1Billion Rand used to grow the housing economy in the city.

A company like Turf works with the inner cities to develop properties. Through the use of mortgage financing for landlords; we can use landlord base financing to grow housing in Nigeria. We need to find information to target the housing sector, so when housing are built they are done with the target market in mind.

Kayode Omotosho: Tenure was a knotty issue and we had been on a long stride of 20-25 years which we have tackled.Interest and foreclosure were other issues. As investors,developers deploy capital and there needs to be a redefinition of the law. So we are tackling foreclosure and will keep Nigerians informed on the progress. We are targeting interest rate in the way that it will not trigger negative phenomenon in the market.

 Dr. Chi Akporji:The issue of attracting finance into the sector is being addressed. On the demand side, there has been a mismatch with the supply. Enabling all stakeholders to work together, the NMRC affords a platform across the value chain to operate seamlessly by reducing costs to borrowers. Interest rates after the world war were as high as 32% but by creating an environment for investment to thrive, housing has become a barometer to measure the economy of the financial world. This showed as the housing crash led to the 2008 global economic meltdown.

5.8 BRAND MESSAGE

FRED JOHNSTON, CEO, KANSAI PLASCON ON THE INNOVATIVE BENEFITS OF ITS PAINT PRODUCT

Plascon launched to provide quality paints to the Nigerian markets. By working on the quality of the plaster, we have been able to design paint which is durable and can last for over four years without fading. We partnered with the Lagos state government to paint the Falomo bridge pillars with the faces of the Chibok girls and we provide training to the painters for this service.

5.9 PARTICIPANT QUESTIONS

Question: How can you support PCNI to deliver appropriate housing? David Garviner, Special Adviser (Tech), Presidential Committee in North East Initiative

Answers: Government can play its role like the government of Taraba state that paid 50% of housing to civil servants and secured mortgage from Federal Mortgage Bank of Nigeria to help them establish success rate. There should be incentives in housing like in agriculture, whose producers are not allowed to pay VAT.

Question: Do we do feasibility studies in the category of housing? Olukole Oladeinde (Nigeria Police Cooperative Society)

Answers: We should move into the element of selling and building instead of building and selling.,

Question: How soon do we have single digit interest rates for mortgages?

Answer: We should allow interest rate reduction take its course.

5.10 TOPIC: ROLE OF NIB IN HOUSING

LEAD SPEAKER: AZEEZ OLAWALE, STERLING BANK

Non-interest Bank: Funds we collect must be purposeful; we can’t just collect any fund. Our criteria for collecting money to support the housing sector include;

  • Cheapness of the money
  • Patience of the funders
  • Tailored to construction

Sterling Bank can come in as a direct investor or create debt for the developer and charge 19-20%, with a profit of between 1-2%.

For Sterling Bank alternative finance, our target is on life preservation, intellectual development etc; so sourcing for really cheap funds is essential and we have access to both local and international funds. We take developer proposals to panels and IDB for approval and provide mortgage as member of NMRC.

5.11 SESSION 3

THEME: INCORPORATING GREEN AND SUSTAINABLE MODELS INTO NIGERIA’S HOUSING AND MORTGAGE MARKETS

PANELIST SESSION 3

Dennis Papa Odenyi Quansah, EDGE, Green Building Lead, Nigeria/Ghana

Building green does not necessarily mean cost reduction; these buildings can actually be sold at higher costs. Architecture plan and how you design play an important role in building green. Developers need to be intentional as some costs may not need to be incurred.

Prof. Danladi Matawal, NBBRI, represented by Head of Building, Engr. Nwanabe Ocean

With green solutions, we can strategically choose how to supply them. Being green means using sustainable and affordable resources; with sustainability being impact on the long term effect. In NBBRI, we utilise sustainable earth processes such as the use of Bamboo to build houses as the potential of this element has been underestimated. We develop and use laminated bamboo panels as doors, walls, roofing panels etc.

Ene Marcharm, Head, Nigeria Energy Support Programme

In terms of green building, we must ensure we have lighting and cooling in an efficient way as the building sector utilizes electricity than any other sector at 42%.

DATED THIS 19TH DAY OF JULY 2018

ABUJA INTERNATIONAL HOUSING SHOW

Imagining a N500 billion housing fund

A big part of Nigeria’s infrastructure gap is the huge housing deficit. At the last count, it was estimated that the country has a 17 million housing deficit. However, this figure has been around since 2012 and so many players in the housing sector believe it is no longer an accurate reflection of the housing gap. Considering that housing provision has been deficient over the years, there is a strong prospect that the housing gap would have grown wider since 2012 than narrower.

But if we assume that the 17 million housing units’ figure is still accurate, even if the country were to build a million houses every year, it will still take 17 years to close the existing gap. With the country’s population growing at an estimated 3.5 percent per annum, to effectively close the housing gap, the country should actually be providing about 1.5 million housing units on an annual basis over a 17-year period.

If the gap were to be closed in the tenure of a single administration, assuming an 8-year tenure, we should be looking at approximately two to three million housing units per annum to do that.Practically, it is impossible for any government to seek to provide up to a million housing units on an annual basis. The cost would be too much and the logistics too huge. If we assume that the government would be providing very low cost housing at an average rate of N5 million per unit (say a two-bedroom apartment in a condominium), we would be looking at a cost of N5 trillion per annum, more than have of this year’s budget. The government is certainly not in a position to fund such huge budget for public sector housing.

However, government is a continuum. So no one government needs to close the housing gap in an 8-year tenure. What is really needed is a long term strategy that is fully funded on an annual basis aimed at closing the housing gap over a determined number of years. Besides, a well-funded and implemented public housing scheme could have a profound impact on economic development. We have all seen the impact Festac and 1004 estates, two mass public sector housing schemes that has stood the test of time, had made in Nigeria. Sadly, they have not been replicated over the years.

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So imagine that the federal government sets up a N500 billion public sector housing fund that is fully funded in the first year and use it to bridge the country’s ever widening housing gap. There is no doubt that a N500 billion housing fund is likely to have more socio-economic impact than the N500 billion social investment scheme that the government is currently implementing.

If we assume that the government can provide a two-bedroom flat on a mass housing basis at an average of N5 million per flat in a condominium style type of housing scheme, the government could easily be building a 100,000 housing units per annum over the next few years. This means that in four years, the government could build 400,000 housing units, a drop in the country’s housing deficit pool, but a significant step forward, when you consider that the government is currently unable to even provide up to a 1000 housing units on an annual basis.

If we assume that you will need to engage a minimum of 10 direct labourers to build one flat, building 400,000 flats per annum, assuming economies of scale, could create at least two million direct labourer jobs. The multiplier effect on other industries, like cement manufacturing, carpenters, wire manufacturers, electricians and many more that will have to be engaged or their products bought to complete this massive public sector housing scheme will be massive.

Then, there is also the taxation impact of providing housing for 400,000 households, who because they are living in government housing, can be identified and taxed. So those not already in the tax net can easily be brought into the tax net.

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The other major advantage of such a housing scheme is that it can be used for urban renewal, creating new urban centres and also for societal integration. So imagine a replica of 1004 estate in Ikorodu area of Lagos that also comes with a shopping mall located within the premises, an entertainment hub, including cinemas and an office complex. It also comes with all the basic amenities like water and road infrastructure.

The estate is built as a place where you can live, work and play. Allocation of flats is done on a quota system basis, that is, a combination of all the major tribes in the country and a healthy sprinkling of minority tribes to encourage ethnic integration.

The question is how do those who get allocated these houses pay for them. The answer is in the country’s fast growing pension funds. As at May 2018, data from the Pension Commission (Pencom) shows total retired savings funds under management is now N8.14 trillion. Total contributors in the fund stand at slightly over eight million.

Average contribution per person is slightly above N1.0 million while 74 percent of contributors are below 50 years. This means that there is room for a good chunk of these contributors to use part of their pension contribution as mortgage payments for a house. This will resonate well with most people as the biggest challenge facing many people looking to retirement is having a house of their own. It is just a matter of allocating a part each person’s monthly pension contribution as part payment for a mortgage for a house which he or she can move in as soon as a certain portion is paid.

Also contributions currently being made under the National Housing Fund (NHF) can be consolidated under the pension fund contribution. Basically, Pencom should take over the NHF contributions and administer it as a mortgage fund under the pension contributions.

The Federal Mortgage Bank can be remodelled into a regulator and possibly a buyer of last resort in the mortgage sector for those who may default in paying up on their mortgages. As a regulator, the federal mortgage bank will ensure that all houses being built under the public sector housing scheme meet with laid down standards and regulations. It could also undertake the provision of the public infrastructure needed to support the new housing units that will come up.

Public housing could be a catalyst for economic development. Sadly, despite our rising housing infrastructure gap, the government has failed to think through a workable and sustainable solution. With the high pace growth in the country’s population, the slow growth rate in housing provision and fast growth in rural to urban migration, the country faces a slum crisis and the associated insecurity that comes with it unless significant efforts are made to close the housing deficit.

Anthony Osae-Brown

 

Bahria Town: Asia’s largest private estate company’s lesson for Nigeria

One of the highlights of a recent trip to Pakistan is a visit to Bahria Town in Karachi, the country’s commercial capital.

Just as Lagos was Nigeria’s former political capital, Karachi was also Pakistan’s former capital and a port city just like Lagos.

It is on the outskirts of the Pakistani metropolis of about 20 million inhabitants that one of the country’s richest men, Malik Riaz, is building an impressive town that is more like a city over an area of 178 square kilometers, the equivalent of 16,000 hectares to house a million inhabitants.

The project, which is expected to cost over a billion US dollars, is just three years old, and has already delivered more than 100,000 villas, apartments and town houses.

The concept of Bahria Town, Karachi, is that of a gated community, somewhat similar to Gwarinpa in Abuja that was built by the Federal Housing Authority during the Abacha regime on a little over 1000 hectares.

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While Gwarinpa is designed as residential area, and is currently facing the challenge of businesses taking over major streets, from the onset, the Bahria Town model sets out to provide all the needed services from hospitals to schools, worship areas, zoos and other amusement parks, cinemas, offices, shops etc within the township.

The unique thing about Bahria Town is that everything is on a grand scale. The main boulevard already constructed is patterned on Dubai’s widest road, the Sheikh Zayed road. They also have what is said to be the biggest dancing fountain in South East Asia that is already in operation. The town also boasts of a theme park that has some of the biggest rides in the world about to be test run.

For golf lovers, an 18 holes golf course is already completed, while its accompanying 5 star hotel is still under construction. A 300 bed hospital is already at work and the town’s zoo has hundreds of animals already in place.

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The ambitious Bahria Town also has Tauheed Square fashioned after Trafalgar Square in London aside from mock Roman columns that adorn a side of the main boulevard. For the spiritually minded, construction is ongoing for the Grand Jamia mosque that aims to be the 3rd largest mosque in the world, complete with a university and museum.

In a delegation of seven Nigerians, we were all dazzled by the speed with which the project is being executed by a team of tens of thousands of workers some of whom are at work in a 24 hour shift. Our visit stretched into the night where we saw the whole town lighted up, witnessed the dancing fountain and learnt that it has its own separate 500MW power plant.

Seeing the beauty and well laid nature of Bahria Town, my mind went immediately to the President Goodluck Jonathan era and the Anyim Pius Anyim-led effort to build a Centenary city in Abuja through an audacious public private partnership which never took off the ground.

According to its website, the Centenary city will take four years to build and will be like Dubai and Monaco with tax laws and others not applying to it. Nearly 10 years since its initial conception, the idea is yet to complete a single building aside from the trade mark, the address signage, visible from the road to the Abuja airport.

The Pakistani model is not without its own controversy, such as its acquisition of such vast land and the founder’s closeness to the country’s military establishment, but which have not hindered its take off.

That model which is also targeted at the upper and middle classes, suggests that Pakistan has more of that category of aspirational citizens who could buy properties at costs ranging from over 70,000 to more than a million dollars.

Nigeria’s property developers could well learn a thing or two from the Bahria Town model that has made its founder and son of a bankrupted business man, Malik Riaz, one of Pakistan’s richest men.

Mannir Dan-Ali

 

FG urged to overhaul housing finance system

The Federal Government has been urged to overhaul the country’s mortgage system to make it easier for Nigerians to own homes.

The Managing Director, Opinior Engineering Company Limited, Mr Muftau Salawu, said this in Abuja during the handing over of keys of two and three-bedroom apartments to officials of the Nigerian Security and Civil Defence Corps.

He advised the Federal Government to put in place measures that would help to drive demand for houses built under the Public-Private Partnership arrangement.

Salawu pointed out that except this was done, the objective of the government to reduce the housing deficit in the country would be defeated.

The 300-unit Open Freedom Estate, according to him, was built to decongest the city centre and open up economic activities at the satellite towns.

He explained that under the PPP housing arrangement, the Federal Government provided the land, while developers from the private sector sourced for the funds for the construction of estates.

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Salawu said with the country having about 20 million units of housing deficit, there was a need for the government to urgently address some of the financing constraints to the housing sector.

He said the constraints created by equity contribution requirements by mortgage finance institutions had left the housing industry less attractive to investors.

According to him, if some of these issues can be addressed, it will assist in providing more houses for Nigerians and create jobs across the entire housing value chain.

Salawu stated, “Open Freedom Estate has over 200 units of three and two-bedroom bungalows at various levels of completion and over 100 units are occupied.

“While we rejoice with you on this achievement, we also want to use this medium to plead with the Federal Government through the Federal Government Staff Housing Loan Boards to assist other civil servants and para-militaries that are dying to own houses of theirs by making the process more accessible for those who want to own houses.

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“The Federal Government can help us the developers by buying-off these houses and give them out to civil servants on mortgage and relief us from debt, which has put us in the state of bankruptcy.”

He said the idea behind the project was not for profit, but to provide affordable houses to Nigerians within the nation’s capital.

“We hope that the Federal Government and relevant agencies will rescue us from this situation because we have over N1bn tied down for four years. It is very sad and not encouraging at all, but we have confidence in the system that things will get better,” Salawu added.

Ifeanyi Onuba

 

FMBN invests N6.37bn in estates in five states

The Ibadan Zonal Coordinator, Federal Mortgage Bank of Nigeria, Mr Stephen Owoshagba, has said that the lender has invested about N6.37bn to build estates in five states.

He identified the states and amounts so far disbursed as Oyo, with N2.33bn; Ondo, N2.03bn; Kwara, N1.06bn; Ekiti, N725m; and Osun, N227.6m.

He spoke during the FMBN Summit in Ilorin, the Kwara State capital on Friday.

Owoshagba said the summit brought together all the desk officers in all the 16 local governments of the state and the civil service in Ilorin to give them an appreciation of the benefit of the National Housing Fund.

He stated, “Essentially, as we are trying to get to the next level in in the development of the scheme, which is to make sure that our information and communications technology is established to give SMS alert to each contributor, we need to be able to surmount the problem of building up the database that will enhance that.

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“Over time, especially in this state, we have been collecting money from consultants and the desk officers are supposed to give us the schedules of the different deductions so that at our end, we will be able to set up the individual accounts, the setting up of individual accounts will be able to enhance our sending balances of contributions on SMS alert on monthly basis to the contributors. This platform is to educate them.”

The Acting Kwara State Coordinator, FMBN, Mr Nurudeen Mohammed, said the summit was an enlightenment forum for schedule officers to know the importance of submitting the schedule of payment.

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He added that most of the organisations in the state that subscribed to the National Housing Fund scheme were remitting the deductions from their employees’ salaries.

Mohammed, however, stated that most of the time, the subscribers were not accompanying their payments with the schedule of payment.

According to him, the schedule of payment is what will enable the bank officials to properly match the employees with their contributions.

Success Nwogu

 

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