The federal government has identified a lack of affordable housing finance as a key driver of Nigeria’s housing deficit, stating that 80% of citizens cannot afford mortgage payments.

Housing and Urban Development Minister, Ahmed Musa Dangiwa, highlighted this issue in his keynote address at the inaugural Kaduna International Housing Exhibition on Monday, July 1.

He emphasized that affordability is a central challenge for all levels of government seeking to provide sustainable housing solutions for citizens.

The minister cited statistics demonstrating that nearly half of Nigeria’s population, exceeding 201 million, lives in poverty and struggles with limited purchasing power.

“In fact of the 43 million households, over 85% have less than N1.1 Million Purchasing Power. Of this 40% (about 17.2 million households fall into the poverty income group and 47% (about 20.2 million) fall into the low-income group.

“On the whole, statistics reveal that Nigeria is a low-income country as it has only 13% of its population as middle class. The recent macro-economic challenges including inflation have made things worse,” he said.

He however said that it is against that background that the President Bola Ahmed Tinubu-led government through the Ministry of Housing and Urban Development is planning to establish a National Social Housing Fund (NSHF).

Arc. Dangiwa explained that, under the NSHF, the federal government is aiming to pull funds from the government budget, philanthropic organizations, and well-meaning Nigerians towards providing decent shelter for Nigerians with no income, low income, and vulnerable brackets who simply cannot afford to own their homes.

According to him, “Some of these units will be delivered at no cost. We have developed the concept note that is undergoing review. Once concluded we will present it to the Federal Executive Council (FEC) for approval and legislation.

“Social housing is not only a necessity it is also a security insurance for the rich and the poor. Because housing is capital intensive and the government has limited funds, we must find alternative collective avenues to help our brothers and sisters who are underprivileged. It is for our collective good.

“In this way, the underprivileged will know that we are one and that we are our brother’s keeper, and that will help social cohesion, understanding, and peace. This is because home ownership gives individuals a sense of belonging and a stake in the community,” the Minister said.

He, however, commended the Governor Uba Sani-led government of Kaduna state for its practical, inclusive, and pragmatic vision for housing delivery, part of which led to the organization of the maiden Kaduna International Housing Exhibition.

Earlier in his address, Governor Uba Sani who was represented by his Deputy, Dr. Hadiza Balarabe said the provision of affordable houses for Kaduna State citizens was a key priority of his administration and committed to addressing the housing deficit across the State in line with President Bola Tinubu’s Renewed Hope Agenda.

He said that the Kaduna State government had adopted a holistic approach towards filling the identified gap through partnerships with local and international investors to frontally address it housing deficit.

According to him, “Qatar Charity, in partnership with the Kaduna State Government, is constructing Mass Housing for the Less Privileged and Kaduna Economic City, all in Millennium City, Kaduna. I recently performed the groundbreaking for the construction of the 3319 Hectares Nuru Suraj Ungwar Dosa New Extension Layout. This project is being executed through a Public – public-private partnership. Nuru Suraj and Kaduna State Government are working together to develop 35,000 plots for our people”

“The Social Housing Scheme was introduced to provide affordable accommodation as a social service for the vulnerable populace (the low-income earners). Efficient design and construction methods, which are key indicators that drive the affordability target of the scheme, were employed,” he said.

The Governor highlighted that his administration has successfully attracted real estate investors to partner in the construction of large-scale housing projects across Kaduna under a public-private partnership (PPP) arrangement.

In his welcome address, the Managing Director of the Kaduna State Development and Property Company (KSDPC), Arc. Abubakar Rabiu Abubakar, announced the launch of two social initiatives: the Arewa Construction Academy and the KSDPC Housing Cooperative Society. These initiatives exemplify the state’s commitment to social investment, skills development, and addressing the housing needs of low and middle-income families.

The speaker announced that KSDPC is poised to undertake significant housing and infrastructure projects. These include the development of an ultramodern Mechanics Village in the eastern part of Kaduna, which will feature an Electric Vehicle (EV) Assembly Plant, CNG Conversion Stations, EV Charger Manufacturing facilities, and strategically placed EV charging points. Additionally, the project encompasses the construction of a 5-star Hospital with accompanying doctor quarters.

According to him, the Company is also planning “A private university to be known as ABSAAR University, a Building Materials Village to service the Eastern Sector of Kaduna metropolis, A Trucks and Heavy-Duty Mechanics Village, which are expected to attract and facilitate the construction and delivery of at least 2000 mixed-type housing units across Kaduna metropolis within the next 5 years.

“This exhibition is a testament to our efforts to transform aspirations into tangible results, ensuring that Kaduna State remains a beacon of progress and opportunity for all its residents,” the KSDPC boss disclosed.

The exhibition draws a diverse audience, including building materials developers, producers, and marketers, as well as other key players in the housing sector.