Finance Ministry Has No Business Handling Housing Projects – Wamakko Tells FG
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In a recent press statement, Alhaji Aliyu Oroji Wamakko, the former President of the Real Estate Developers Association of Nigeria (REDAN), has expressed his deep concerns about the Federal Government of Nigeria’s allocation of N150 billion to the Ministry of Finance Incorporated (MOFI) real estate investment fund. Wamakko said he believes this decision undermines critical institutions like the Federal Mortgage Bank of Nigeria (FMBN), which remains severely underfunded.
Wamakko commended the ongoing discourse on Nigeria’s housing deficit but stressed the need for a more strategic allocation of resources. “The Federal Mortgage Bank currently operates on a capital base of just N2.5 billion—an amount woefully inadequate for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units,” he said.
The FMBN heavily relies on the 2.5% contributions from workers under the National Housing Fund (NHF), a model Wamakko deems unsustainable. He highlighted the bank’s struggle with basic operational needs, from maintaining nationwide offices to managing supplies, and argued that expecting the FMBN to deliver affordable housing and mortgages under such conditions is simply not feasible.
“If the Federal Government is advancing its Renewed Hope Housing Initiative, it must prioritise the recapitalisation of the FMBN,” Wamakko asserted. He pointed out that over 4.3 million Nigerians have contributed to the NHF for the past 30 years, yet the bank lacks the capital to fulfill its mandate.
Wamakko proposed two clear paths forward: either channel funds directly to the Federal Ministry of Housing or inject capital into the FMBN. He emphasized that the Renewed Hope Housing Initiative, which aims to deliver 500,000 housing units annually, is achievable with the right financial backing.
He also questioned the decision to position the Minister of Finance to oversee housing provision and mortgages, given the existence of a dedicated Minister of Housing and the FMBN. “Nigeria faces multifaceted challenges—insurgency, banditry, floods, fires, and urban-rural migration—all of which exacerbate the housing crisis. These issues demand a focused and well-funded response,” Wamakko said.
In conclusion, Wamakko urged the Federal Government to redirect resources to the appropriate authorities to ensure the Renewed Hope Agenda translates into tangible results for Nigerians. “The housing deficit is a national emergency, and with proper funding, we can turn the tide. The will is there, the expertise is available—now, the funds must follow,” he stated.
He equally said, “we thank the chairman of the Senate Committee on Housing and Urban Development for his efforts reasoning this issue”.
