The Real Estate Developers Association of Nigeria (REDAN) has lauded the efforts of the Federal Government aimed at accelerating the pace of reforms in the housing sector through the National Housing Funds (NHF).
The minister of Works and Housing, Mr. Babatunde Fashola had earlier expressed the need for the creation of a National Housing Funds that developers can access at a reasonable rate to reduce housing deficit in the country.
President of REDAN, Alhaji Aliyu Oroji Wamakko, who gave the commendation while speaking with journalists in Abuja, advised that the construction of the houses should be private-sector driven.
Wamakko said this is because the private developers do not just build houses but ensure that they are properly maintained.
He further said; “Government has no business in building houses or constructing houses for homeless Nigerian. It is the duty of developers to do so while the government facilitates the process.
“We are happy that the minister of Works and Housing has seen the need to solve this problem via a private-sector approach. We believe it will be a win-win situation for the developer and the government”.
Wamakko assured that private developers will pay taxes and create employment via the initiative.
Commenting on the recapitalization of the Mortgage bank, Wamakko called on the Federal Government to recapitalize the bank to enable it increase delivery of affordable housing in the country.
He said; “The FMBN is the only bank that gives loans to developers at an affordable rate. They give loans to developers at 6, 9, and 10 percent. We believe that recapitalising it will solve the housing deficit.”
He noted that at the moment, the bank is grossly inadequate to solve the huge housing deficit confronting the country, adding that the long-overdue recapitalization of the bank is fundamental to the growth of the housing industry as it will empower the FMBN to service both the demand and supply sides of the housing market in Nigeria.
In his words; “Recapitalization is the best answer to help reduce the housing deficit in Nigeria”.
