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The Minister of Housing and Urban Development, Ahmed Dangiwa, recently stated that the housing market in Nigeria has the potential to stimulate a $1tn economy.
He made this statement during the groundbreaking ceremony for the 250-housing unit Renewed Hope Estate in Akwa Ibom. Dangiwa emphasized that the housing sector could act as a catalyst for a $1tn economy.
The project is part of the Renewed Hope Cities and Estates program, which was launched by the President with a groundbreaking for 3,112 Renewed Hope City in Karsana, Abuja in February 2024.
The program has also included states like Kano, with a 500-unit Renewed Hope City; and Katsina, Gombe, Yobe, and Sokoto, each with a 250-unit Renewed Hope Estate in the first round of groundbreaking.
Dangiwa expressed the intention to transform Nigeria into a significant construction site. The estate, along with others, consists of 50 units of 1-bedroom semi-detached bungalows, 150 units of 2-bedroom semi-detached bungalows, and 50 units of 3-bedroom semi-detached bungalows.
"We have designed these housing units to be affordable for people to acquire by using organic designs that allow for future expansion as the income of beneficiaries increases. This means that a 1-bedroom unit can be expanded to 2 bedrooms, and a 2-bedroom unit can also be expanded to 3 bedrooms as the owner's financial situation improves or their family grows," Dangiwa explained.
The minister highlighted the significant economic benefits of housing construction, emphasizing that it extends beyond improving the economies of local communities.
He posited, “Statistics show that the construction of one housing unit creates an average of 25 direct and indirect jobs. So, for these 250 housing units in Akwa Ibom, we hope to create jobs for over 6,500 people in various trades, from professionals like architects, civil engineers, and mechanical engineers to masons, plumbers, tilers, electricians, and labourers.
“We have seen unskilled workers at sites earning as much as N35,000 per week, at an average of N5,000 per day. This amounts to about N140,000 per month.
“This is in addition to the economic activities, including those selling food, supplying blocks, and providing building materials. The value chain effect of construction work on this site is significant and creates a positive economic impact,” the minister explained.
While he thanked the Governor of Akwa Ibom State, Umo Eno, for providing the land for the project at no cost, he urged other state governors to take a cue from the 12 states so far captured under the N50bn 2023 supplementary budget.
He assured them that their states would be included in the 2024 budget of the ministry, as the ministry planned to build Renewed Hope Estates in all the states.
According to the Federal Mortgage Bank of Nigeria, the country needs an investment of over N21tn to bridge its 28 million housing deficit.
