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Fashola seeks increased private sector investment to redress housing deficit



Mr. Babatunde Fashola, Minister of Works and Housing has revealed that the government cannot provide for all of Nigerians’ housing needs, hence it is necessary to foster an atmosphere that encourages private sector participation in the housing market.

The minister stated this on Friday at the ministry’s headquarters at the unveiling of the National Housing Strategy Blueprint.

This 10-year strategic plan aims to integrate all current housing projects being undertaken by different stakeholders into a coherent approach.

He claimed that the current administration’s multiple housing schemes for affordable housing still didn’t produce more dwellings than private businesses.

According to him, the private sector remains the real driver of housing solutions, adding that the document would unleash the power of private capital in the sector.

Read Also: SGF better placed to answer for N6tn rent funds, not me, Fashola tells lawmakers

Fashola added, “There is nothing the government does in the housing sector that exceeds and provides more than what the private sector can do. Whether it is a state government building or the federal government, the real drivers at the end of the day are the capacity of private capital for providing more houses.

“When you look at the scope of land holding, apart from the state government that owns the bulk of the land, the Federal Government doesn’t have as much land as the collective land holding in the hands of the private sector.”

According to a publication by Central Bank of Nigeria (CBN), Nigeria’s housing deficit was at 7 million in 1991 and rose to 12 million in 2007, 14 million in 2010, 20 million units in 2019.

Also, the Federal Mortgage Bank of Nigeria noted that the deficit is currently at 28 million units as at January 2023.

This means that 28 million people or more are homeless. The CBN has estimated an amount of ₦21 trillion will be needed to finance this deficit, and with a growing population of 200 million Nigerians, the current deficit is extremely high.

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