Housing Minister proposes 20-30% cross-subsidy in estate funding for low-income Nigerians 

The Minister of Housing and Urban Development,  Arc. Ahmed Musa Dangiwa has proposed that 20-30% of funding for housing estates in Nigeria be allocated to cross-subsidization, with the goal of making homeownership more accessible to low-income Nigerians.

This initiative is part of a wider strategy to ease the financial burden on low-income families while ensuring the construction of cost-effective, high-quality homes.

Arc. Dangiwa made this proposal during an interactive session with the House of Representatives Committee on Housing and Habitat, which discussed the establishment of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) and the suspension of the Single Obligor Limit (SOL) on the Federal Mortgage Bank of Nigeria (FMBN), as noted in a statement from the ministry.

In highlighting the potential of cross-subsidization, the Minister pointed to Algeria’s success, where one million homes were delivered in a year through a similar model. He recommended that Nigeria adopt this approach to address its housing challenges.

 “Whenever we are funding any estate to be developed, 20 to 30 per cent of the funding should be cross-subsidized,” the Minister stated.  

The statement also highlighted that the Housing Minister, Arc. Dangiwa, commended the Honourable Minister of Finance, Mr. Wale Edun, for securing Federal Executive Council approval for the MREIF, describing it as a transformative initiative for Nigeria’s housing sector.

He also stressed the need for increased support for the Federal Housing Authority (FHA), which would strengthen its capacity to spearhead housing development and help address the country’s growing housing deficit.