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Nigeria Unlocks Private Investment for Housing Boom and Infrastructure Upgrade

Boom RadioNG | May 15, 2024
Nigeria's Federal Executive Council of Nigeria FEC

The Federal Executive Council (FEC) has greenlit a groundbreaking initiative to transform Nigeria’s infrastructure and housing sectors. This initiative prioritizes public-private partnerships to address the critical needs for quality infrastructure and affordable homeownership.

Boosting Growth and Job Creation Through Public-Private Collaboration

This collaboration aims to unlock private-sector funds, providing Nigerians with access to 25-year mortgages at attractive interest rates. This will make the dream of homeownership a reality for many.

Finance Minister Wale Edun emphasized the importance of innovative partnerships between private entities and state-owned enterprises (SOEs) like the Nigeria Sovereign Investment Authority (NSIA) and the Ministry of Finance Incorporated (MoFI). These collaborations will strategically channel funding towards high-impact areas, driving economic growth and job creation.

President Bola Tinubu

Empowering Homeownership and Urban Development

The initiative strengthens the Federal Mortgage Bank and the Federal Housing Authority, allowing both public and private entities to fulfill their housing mandates. This collaboration is expected to provide a significant boost to the President’s Renewed Hope Cities project, aiming to deliver 50,000 new housing units across Nigeria.

Streamlined Funding for Mortgages and Infrastructure

The partnership brings together institutional investors, overseen by the Ministry of Finance Incorporated, to create a framework for mortgage funding. This structure simplifies the flow of private investment into the housing sector, particularly the mortgage market, fostering affordable homeownership opportunities.

For infrastructure projects, a specialized framework utilizing a special-purpose vehicle (SPV) owned by the NSIA will be established. This structure allows institutional investors to provide long-term financing with robust oversight, mitigating risks associated with large-scale government projects.

Nigeria's Federal Executive Council of Nigeria FEC

Nigeria’s Federal Executive Council of Nigeria FEC

Private Sector Expertise: Driving Efficiency and Transparency

The initiative also ensures private-sector involvement in project governance, cost management, and asset delivery. This collaboration will offer tangible benefits to Nigerians while safeguarding investor interests.

The infrastructure focus prioritizes power generation, toll roads, and railway projects, aligning with the government’s economic goals. The federal government will continue to provide essential infrastructure funding to enhance project viability for private-sector participation.

N2 Trillion Investment: A Brighter Future for Nigerians

Initial discussions and commitments from the private sector point towards a potential mobilization of N2 trillion in long-term financing for housing and infrastructure projects across the country. This partnership holds immense promise for the Nigerian people.

By leveraging the expertise and capital of private investors, the President Tinubu-led administration aims to accelerate the delivery of critical projects. This initiative positions Nigeria for sustainable development and economic progress for all.

Written by Boom RadioNG

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