From Our Housing Stand 113
There Have been consistent emphasis on the nationwide housing deficit by the Federal Ministry of Housing and Urban Development.
The Federal government’s Renewed Hope Cities and Housing Programme is one of the most significant initiative that has been adopted to address this issue and boost economic growth.
On February 8 2024, the President of Nigeria, Bola Ahmed Tinubu, performed the groundbreaking ceremony of the pilot phase of his ambitious housing agenda,the Renewed Hope Cities and housing Development Programme in Karsana, a suburban in Abuja.
The Renewed Hope Cities and housing are envisioned as inclusive residential communities catering to diverse income levels. They will consist of one-bedroom, two-bedroom, and three-bedroom apartment blocks tailored for low to medium-income earners, as well as two-bedroom terraces, four-bedroom terraces, four-bedroom duplexes, and five-bedroom duplexes designed for high-income individuals.
Under the first phase of the scheme, 50,000 units of houses are projected to be delivered to Nigerians across the 36 states and the FCT by the end of 2024.
Aside the site for the 3,112 which is opened, similar construction sites are active in 12 states around the nation. Subsequently more sites will be activated for the simultaneous mass housing project across the country.
Under the Renewed Hope Cities and housing programme, low- and middle-class Nigerians connected to the Nigeria Labour Congress and the Trade Union Congress would be eligible to purchase 20% of the housing units at discounted prices, while the remaining 80% would be sold at commercial rates. The programme would function as a cross-subsidy initiative.
The cross-subsidy arrangement’s basic idea is to use the commercial units’ revenues to subsidise the units reserved for people with low and moderate incomes.
Aiming to improve housing affordability, Nigerians can choose from a number of ownership options under the Renewed Cities and Estate Programme. These options consist of 30-year, single-digit mortgage loans made possible by the Federal Mortgage Bank of Nigeria; rent-to-own programmes that allow recipients to live in properties and make regular payments towards ownership; and outright purchase options designed for individuals with high incomes.
The Renewed Hope Cities and Estates Programme is not only a grand vision; it is a necessity for many reasons. As our population continues to grow, the demand for housing and urban infrastructure is rapidly growing. Our existing cities are grappling with issues like congestion, inadequate housing, and strained infrastructure.
The housing units built in the Renewed Hope Cities will be sold at commercial rates while a substantial percentage will be sold at concessionary rates to low- and medium-income Nigerians.
According to development economists, affordable urban housing initiatives have the capacity to boost the economy in a number of ways. First of all, these projects improve household welfare and disposable income by expanding access to affordable housing. Families that spend less on housing have more money to spend on healthcare, education, and other necessities, which helps to reduce poverty and build human capital.
Furthermore, better housing results in healthier people, which lowers healthcare expenses and increases productivity.
The ability of affordable urban housing developments to provide jobs is one of the main advantages of the initiative. In many nations, the building industry plays a significant role in both job creation and economic expansion.
The ability of affordable urban housing developments to provide jobs is one of their main advantages. In many nations, the building industry plays a significant role in both job creation and economic expansion.
Nigeria can generate employment in the design, engineering, manufacturing, and site management phases of the construction value chain by investing in housing projects.
Additionally, These projects also call for both skilled and unskilled workers, providing jobs for a varied workforce. Economic activity is further stimulated by the multiplier impact of employment creation in the construction sector, which spills over into other areas like manufacturing, transportation, and retail.
According to the project designers, each house will generate 25 jobs, both direct and indirect. Thus, the Federal Capital Territory’s 20,000 projected housing units alone will generate 500,000 jobs.
Conclusively, the Renewed Hope Cities initiative offers a workable plan to alleviate Nigeria’s housing shortfall. These initiatives are concentrated on offering low-income earners solutions for affordable housing.
These initiatives also seek to provide high-quality housing at reasonable costs by utilizing creative building methods, economical building materials, and environmentally friendly designs. In addition, they would promote inclusive development by guaranteeing access to adequate housing for individuals at the bottom of the socioeconomic scale, particularly workers in Nigeria.
