Former REDAN President Calls for Increased Funding to Address Nigeria’s Housing Deficit
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Alhaji Aliyu Oroji Wamakko, the former President of the Real Estate Developers Association of Nigeria (REDAN), has commended the Federal Government’s efforts to address Nigeria’s housing deficit. However, he also raised significant concerns about the allocation of N150 billion to the Ministry of Finance Incorporated (MOFI) real estate investment fund, instead of prioritizing critical institutions like the Federal Mortgage Bank of Nigeria (FMBN).
In a statement issued on Monday, Alhaji Wamakko highlighted the inadequacy of the FMBN’s current capital base of N2.5 billion, describing it as insufficient for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units.
“The FMBN relies heavily on the 2.5% contributions from workers under the National Housing Fund (NHF), a model that is neither sustainable nor sufficient to meet its operational needs,” he said. “From maintaining nationwide offices to powering generators, purchasing vehicles, and managing basic supplies, the bank is stretched thin, yet it is expected to deliver affordable housing and mortgages. This is simply not feasible under the present circumstances.”
He called on the Federal Government to prioritize the recapitalisation of the FMBN if it is to advance its Renewed Hope Housing Initiative. “Over 4.3 million Nigerians have contributed to the NHF for the past 30 years, yearning for homes, yet the bank lacks the capital to deliver on this mandate,” he noted. “Without significant funding, optimal performance from the FMBN will remain a distant dream.”
Proposing two clear paths forward, he suggested channeling funds directly to the Federal Ministry of Housing or injecting capital into the FMBN to empower it to provide affordable housing. Alhaji Wamakko stressed the necessity of financial backing for the Renewed Hope Housing Initiative, which aims to deliver 500,000 housing units annually. He also highlighted President Tinubu’s campaign promise to build one million housing units per year, underscoring the urgency of this issue.
“I find it perplexing that the Minister of Finance is being positioned to oversee housing provision and mortgages when we have a dedicated Minister of Housing and the FMBN, both of whom are better equipped to execute this mandate,” he said.
Nigeria’s housing crisis is exacerbated by multifaceted challenges such as insurgency, banditry, floods, fires, and urban-rural migration, which demand a focused and well-funded response. Alhaji Wamakko praised the current Minister of Housing for his remarkable leadership and initiatives, urging the government to provide adequate funding.
“In conclusion, we thank the chairman of the Senate Committee on Housing and Urban Development for his efforts reasoning this issue, while I urge the Federal Government to redirect resources to the appropriate authorities—the Ministry of Housing or the FMBN—to ensure the Renewed Hope Agenda translates into tangible results for Nigerians,” he concluded. “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.”
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