Shelter Afrique Blames Poor Data For Nigeria’s Housing Deficit, Pledges To Deliver 1,100 Units

A Pan African Real Estate firm, Shelter Afrique has attributed Nigeria’s housing deficit to lack of investment data to guide policy making.

The firm however,said it has launched insurance bonds to deliver 1,100 housing units and 5000 jobs in Nigeria.

The managing director/chief executive officer Shelter Afrique Mr Thierno-Habib Hann stated this in his presentation at the 17th Africa International Housing Show held in Abuja.

He said the nation’s housing woes are worsened by its land tenure system and land registries and records.

He added that the problem is compounded with low disposable incomes,development risks and ‘diseconomies of scale’ ,’bank appetite to the sector’ and ‘short tenors’.

He said the Nigerian housing challenge is bedevilled with “inadequate laws, inadequate foreclosure laws and lack of effective data to guide investments and policy making “

He said with the nation’s large housing deficit due to rapid urbanisation at 53 percent projected to hit 70 percent by 2050 following low supply of housing.

Mr Hann said Shelter Afrique as part of efforts to close the gap launched a N46 billion bond at the capital market.

He said the bond has been over subscribed to N64.3 billion.

“Shelter Afrique’s debut N46 billion bond issuance in Nigeria’s capital market

Shelter Afrique has successfully completed its debut   46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its N200 billion (US$481.3 million) bond issuance programme in April 2022.

“The dual tranche bond issuance was 60.7% oversubscribed with the order book peaking at N64.3 billion (US$154.6 million), enabling Shelter Afrique to exercise the ‘green shoe’ option and raise an additional N6 billion (US$14.4 million) more than the original N40 billion plan (US$96.3 million).

The bond issuance attracted participation from a diverse range of institutional investors including pension funds, banks, and insurance companies, supported by an AA rating from GCR Ratings and an A+ rating from Agusto & Co”

He said “the proceeds from the bond issuance are expected to deliver an estimated 1,100 housing units and create an estimated 5,000 jobs in the country.  This is a testament to Shelter Afrique’s commitment to supporting Nigeria achieve its social and economic development objectives”.

The governor of Niger State, Mohammed Umar Bargo, said the state has put in place policies to drive urban development.

He said Abuja/Niger has along history, further informing that despite ceding some parts of Niger lands to the FCT,they still lived on about 76,000 sq kms, of which just about 30 percent is currently inhabited, with 70 per cent of it ungoverned

“Now there is a new sheriff in town and we have in our policies and programmes aggressive policies of urban renewal encompassing development of infrastructure.

“As you have asked what we are doing with the free space between Abuja and Niger. we have a free trade zone between Tafa and Garam. We are going to establish a free trade zone, we are going to dualise the road that leads from Madala to Minna.

It is about 40 kms and already awarded to CCECC.

“We are going to open up Suleja, for people who want to develop. Someone had mentioned the Suleja Smart City, but why are we not attracted to it yet? It is because basic infrastructures are lacking” .

“So this Sheriff that is in town now, surely, take that to where investors will come. We are willing to collaborate, we have an open government with an open policy, investors, developers and financial institutions from both within and abroad are invited to come and let’s discuss on how we can move the project forward”

“We also reaffirm to investors that the federal government has approved the construction of a rail line between Abuja,a station in Suleja, Minna, Zungeru, Bidda, Mokwa and Jedda respectively.So naturally it will translate to individuals flocking in”

“The shortage of housing in Abuja; Minna by rail is just about 20 minutes. So people can work in Abuja and go to live in Minna if we have an effective rail line”

“We are working on that and the CCECC too has been awarded the contract. We have pleaded with them to start from Abuja to Minna. to enable us get the advantage of being first to be reached”.

“God willing we are promising investors to come as we are willing to partner at all levels. The doors of the Presidency is open to us, the Governor has access to them and as such can talk to them on all their impediments so that we can solve them”

Mr Festus, thank you for having a programme such as this”