Unlocking Billions in Dead Capital: A New Era for Affordable Housing in Nigeria

Unlocking Billions in Dead Capital: A New Era for Affordable Housing in Nigeria


In a recent groundbreaking announcement, Architect Ahmed Musa Dangiwa, the Minister of Housing and Urban Development,

revealed the Nigerian government's ambitious plan to breathe new life into the real estate and agriculture sectors. Their goal?

To bridge the country's substantial housing deficit by unlocking a staggering $300 billion in dead capital. This announcement

was made during the opening of a two-day conference organized by the Real Estate Developers Association of Nigeria

(REDAN) in Abuja.

Dangiwa openly acknowledged the challenges that have held back these sectors from reaching their full potential.

Represented by Minister of State for Housing and Urban Development, Alhaji Abdullahi Tiani Gwaro, he expressed the

ministry's unwavering commitment to dismantling institutional, legal, and bureaucratic barriers that have long hampered

sector growth. A Price Waterhouse Coopers report estimated that Nigeria is burdened with between $300 billion and $900

billion in untapped capital within the residential real estate and agricultural land sectors. This capital has remained dormant

due to various factors, including high bond interest rates, difficulties in securing international funding for housing projects,

and inadequate budgetary financing for housing development.

Dangiwa emphasized its objective to remove these barriers, collaborating closely with key stakeholders to review and amend

the Land Use Act. Their aim is to streamline land administration, making access to land more straightforward and efficient,

thus unlocking the potential of these vital sectors.

Earlier, Alhaji Aliyu O. Wamakko, the President of REDAN, called on association members to ensure compliance with existing

laws and regulations, highlighting the importance of improving the national economy. He also pledged the association's full

support to the Federal Government in their pursuit of affordable and accessible housing.

Wamakko stated, "This Council has zero tolerance for shady deals that could tarnish our industry, and we must protect what

we have worked so hard to build. We call on all levels of government—Federal, State, and Local—to recognize real estate as a

cornerstone for revitalizing the economy and extend their support to the sector and REDAN."

The conference aimed to empower REDAN members with the knowledge and skills required to navigate the complex landscape

of the real estate business successfully. This included a focus on obtaining financing to build homes at costs affordable to the

average Nigerian, addressing the capital-intensive nature of real estate development.

Wamakko reiterated, "The essence of this event is to enhance the knowledge base of our members and enable them to manage

the multifaceted challenges within the real estate industry. It's also about enhancing our capacity to minimize waste and ensure

timely project delivery."

He further stressed the importance of securing long-term, low-interest debt financing for members, underscoring that this is

pivotal to making homeownership more accessible to the Nigerian population.

In conclusion, this collaborative effort between the government and real estate stakeholders in Nigeria promises a brighter future

for the housing sector. By unlocking dormant capital and streamlining processes, the dream of affordable housing for all Nigerians

moves one step closer to
reality. The real estate industry is set to play a pivotal role in rejuvenating the national economy, offering

hope for a prosperous and accessible future for homeowners.


Location: Rivers, Nigeria

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