In its bid to pursue the delivery of affordable housing and promoting sustainable urban development, the federal ministry of housing and urban development is exploring partnership areas particularly in infrastructure development, with the Kuwait Fund for Arab Economic Development (KFAED).
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, expressed the readiness of the Ministry to receive the interventions, during a meeting with a delegation from the Kuwait Fund, held at the Ministry’s headquarters, yesterday in Mabushi, Abuja.
The Minister highlighted a couple of programmes launched by the Ministry under the leadership of the President as key areas where the Ministry needs to intervene.
The areas include; the establishment of Building Material Manufacturing Hubs across Nigeria’s six regions, to reduce the cost of building materials in the country and create job opportunities.
Dangiwa explained that each hub would be built on 200 to 300 hectares of land and equipped with infrastructure such as roads, drainages, electricity, water, and other facilities that would enable it to function properly.
He also informed that solicitors and proposals from investors have been received by the Ministry to develop the hubs, with four investors currently involved.
“After we have done the site and services infrastructure, the spaces will be allocated for investors who want to build medium-sized factories, small-sized factories, and large-scale factories that can produce roofing sheets, doors, windows, ceramic tiles and all the printing materials that we need in the locations”, he added.
The minister spoke about the development of a district called Centenary City in Abuja, which spans over 1200 hectares of land along the airport road, saying that funds were needed to develop the infrastructure.
Another area of partnership, according to the minister is the Urban Development sector of the Ministry which focuses on urban development in the cities and urban areas, as well as slum upgrade in the hinterlands.
In reference to the technical assistance earlier mentioned by the director general of the Kuwait Fund, Arc. Dangiwa said the Ministry seeks technical assistance to fund and implement the programs effectively.
He highlighted the need for technical assistance in conducting feasibility studies for projects like the Centenary City, adding that the Ministry already conducted one for the City, but needs additional support.
Accordingly, the minister mentioned the need for intervention in the ministry’s Renewed Hope Social Housing program, which aims to build 100 houses in the country’s 774 local governments, targeting low-income and underprivileged individuals.
He explained the plan to sell 70 per cent of the houses to low-income earners, who would pay only 30 per cent of their income, and the rest would be subsidised by the government. The remaining 30 per cent of houses would be given to zero-income, underprivileged, and displaced individuals.
Earlier in his remarks, the director general of the Kuwait Fund for Arab Development, Dr. Wahad Al-Bahar, stated that their visit to the Ministry was to explore potential areas of collaboration and support.
He informed that the Kuwait Fund for Arab Development is interested in identifying projects within the Ministry that could benefit from its assistance, particularly in infrastructure and social development.
He stated, “These are some of the areas we can support, but I need to know if you have feasibility studies for the projects. We must also consider the cost implications, and the studies must be current.”
While clarifying that the Kuwait Fund does not finance direct housing projects in accordance with its operational policy, Dr. Al-Bahar affirmed the Fund’s willingness to support related infrastructure, including transportation, education, agriculture, and other social sectors.
Dr. Al-Bahar added that the Kuwait Fund offers soft loans to governments, including Nigeria, under favourable conditions, with a maturity period ranging from 20 to 25 years and low interest rates.
In addition to the financial assistance, he reaffirmed the Fund’s readiness to support the Nigerian Government in developing or updating feasibility studies for potential projects.
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