My Ministry Can Generate N300bn from Sale of Houses in 24 Months- Dangiwa
The Minister of Housing and Urban Development, Ahmed Dangiwa, has disclosed that ministry can return up to N300 billion to the coffers of government from the sale of houses in two years, if given a budgetary allocation of N500 billion.
The minister who spoke in Abuja while briefing the Senate Committee on Lands, Housing and Urban Development, during an oversight visit to the ministry, disclosed that 1000 housing units of the ‘Renewed Hope Cities’ were slated to be delivered by the end of 2024.
Dangiwa stated that the other units to be delivered by middle of next year for commissioning by President Bola Tinubu, at the pilot phase of the project in Karsana Abuja.
The minister explained that a consortium of developers was contracted to deliver a total of 100,000 housing units all over the federation under the programme, 20,000 units of which will be in Abuja with the pilot phase at Karsana to house 3112 housing units.
He disclosed that the developers were to provide the financing for the units, the land and off-takers, while the ministry guarantees their loan with bankable off-takers guarantee, to enable them access the finance.
He stated further that the developers had accessed funding through Family Homes funds and other means, and were on site to ensure they deliver in due time.
The minister laued the senate for their support, noting that groundbreaking for the programme had been done in 13 sites which is funded by the 2023 supplementary budget.
“We also took them (senators) through the public private partnerships that we are doing with some of the reputable developers to which Karsana is one of it where we are building 3112 units.
“We have discussed also the Slum Upgrade and Urban Renewal which cut across 28 sites across the country. Most of these projects are almost completed and we are about to commence the 2024 budget,” he emphasized.
On his part, the Chairman of the Committee on Lands, Housing and Urban Development, Senator Aminu Tambuwal, stated that the visit signalled the commencement of oversight activities of the committee for the 2023 supplementary and 2024 budget.
Tambuwal explained that committees of the senate were saddled with the responsibility of oversight of the activities of Ministries, Departments and Agencies (MDAs) under them, as required by the constitution.
He declared that the 2023 supplementary budget had advanced, hence the need to visit the ministry and proceed to some sites where the appropriations were being implemented to see for themselves and assess what was going on.
Tambuwal applauded the minister for his cooperation, adding that it was in the interest of the country to make sure that monies appropriated are spent in accordance with extant laws and regulations.
He acknowledged that more funds were needed to be allocated to the ministry, given that housing is one sector that will generally distribute wealth to the lowest of the low.
