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Issues Hindering Construction Of Mass Housing

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12 years ago

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The World Bank estimates that N59.5 trillion is required
to address Nigeria’s 17 million housing deficit.
The Federal Mortgage Bank of Nigeria (FMBN), however put the figure at about N56 trillion.
The Managing Director of FMBN, Mr. Gimba Ya’u Kumo said the figure was based on a conservative estimate of constructing a housing unit at the cost of N3.5million.
He said that the huge capital outlay, made it mandatory for a concerted approach in government’s mass housing delivery programme.
Kumo who spoke recently at a workshop organised for trade union leaders, said the FMBN would create enabling environment to enable people assess mortgage loans.
He stressed the need for people, especially workers to register with the National Housing Fund (NHF), as it “guarantees accessibility to a large pool of funds,’’ for housing projects.
According to Kumo, the NHF scheme is for “Nigerians in all sectors of the economy, particularly those within the low and medium income levels who cannot afford commercial housing loans.’’
Some of the requirements for intending beneficiary is that he or she must be a registered contributor and up to date with his or her contributions.
To be eligible to borrow, contributors must have contributed 2.5 per cent of monthly basic salary or income for a minimum of six months.
However, some contributors to the NHF said they had been unable to assess funds from the NHF because of some difficult conditions.
A Grade Level 12 officer in a government agency, Mr. Agim Ogar said the equity contribution was too high.
“The equity contribution or personal stake of 30 per cent, 20 per cent, or 10 per cent depending on the loan amount applied for is too much.
“This makes it difficult for civil servants who earn less than the required equity contribution to access the loans as it would require borrowing to meet the requirements,’’ he noted.
The former President, Nigeria Institute of Builders, Mr Chucks Omaife,  advised relevant agencies of government to evolve better planning to meet the housing needs of Nigerians.
He blamed the inability of Nigerians, especially civil servants, to build their own houses on poor government policies.
To redress the housing deficit, the Mortgage Banking Association of Nigeria (MBAN), had suggested an increase in the level of housing finance in the country.
The President of MBAN, Mr Femi Johnson, said it should be moved upwards from the present 0.5 per cent to10 per cent of the Gross Domestic Product (GDP).
On its parts, the Federal Government said it would access 300 million dollars soft loan from the World Bank for housing finance projects.
The Minister of State for Finance, Alhaji Yerima Ngama, who spoke recently after the Federal Executive Council Meeting, said the soft loan was designed to boost government’s housing delivery programmes.
“The council has deliberated and approved that we access 300 million dollars from the International Development Association, which is a soft borrowing window for developing countries, offered by the World Bank.
“This loan is going to be used in order to meet the government’s objective in the proposed Nigeria Housing Finance Project.
“The Nigeria Housing Finance Project, is aimed at increasing access to housing finance by deepening primary as well as secondary mortgage markets in Nigeria,’’ the minister said.
According to Ngama, 250 million dollars of the amount will be used to establish a mortgage re-finance company.
He said that 10 million dollars would also be devoted to capacity building and technical assistance to stakeholders in the mortgage industry.
The minister said that the establishment of mortgage guarantee product, targeted at the low income borrowers, would gulp 25 million dollars.
“This guarantee will enable people who otherwise cannot provide adequate collateral to access loans,’’ the minister added.
According to him, the housing demand in Nigeria is currently put at 700,000 units annually, while only 100,000 units are being built for now.
Stakeholders in the real estate sector want the government to provide the necessary incentives to attract genuine investors to the sector.
They also want the government to remove all the bottlenecks, hindering contributors to the National Housing Fund from accessing loans to build their own houses.
Bashel writes for News Agency of Nigeria.

 
Lydia Bashel

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Boat Mishap Kills Pastor, Wife And Church Members  In Brass Water

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1 week ago

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May 18, 2026

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A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways
The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and  members of his church were in a programme.
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?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet  to be recovered
as search party are still ongoing.
Although the real cause of the boat Mishap is not yet known as at the time of this report,  our Correspondent gathered  that the identities of the Pastor, wife and church members were not disclosed to the public.
The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit
The Bayelsa State government and the state police command are yet to issue official statement’s  on the sad accident
By: CHINEDU WOSU
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Rivers Workers Seek Scrapping Of Contributory Pension Scheme

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1 week ago

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May 18, 2026

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The Rivers State Council of  Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.
Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt,  recently.
Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.
He noted that  the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.
According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.
He also  informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.
“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.
Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.
The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.
He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.
Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.
The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.
He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.
Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.
By: King Onunwor
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FG Begins South-West Tour To Promote New Cooperative Bank

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2 weeks ago

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May 13, 2026

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The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
 Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted  the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
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