Odimmegwa Johnpeter/Abuja
Ministry of Housing and Urban Development is exploring partnership areas, particularly in infrastructure development, with the Kuwait Fund for Arab Economic Development (KFAED). This was contained in a statement signed by Badamasi S. Haiba, Fsca, Director, Press and Public Relations.
The partnership focus will be in pursuance to the delivery of affordable housing and promoting sustainable urban development in Nigeria.
KFAED is Kuwait’s agency for the provision and administration of financial and technical assistance to developing countries.
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, Mabushi, Abuja.
The Minister highlighted a couple of programs launched by the Ministry, under the leadership of President Bola Ahmed Tinubu, GCFR, as key areas where the Ministry needs intervention.
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, to be equipped with infrastructure such as roads, drainages, electricity, water and other facilities that would enable the hub 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 wants to build medium size factory, small size factory and the large scale factories that can produce roofing sheets, doors, windows, ceramic tiles and all the printing materials that we need into 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.
He noted that the infrastructure development at the city would attract investors who will take up a portion of the land to develop commercial, tourism, residential, and industrial outlets.
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 upgrades in the hinterland
He explained that the slum upgrade provides infrastructure like drainages, roads, sanitation, electricity, schools, and hospitals, that would make life comfortable for the society, informing that last year’s budget funded the development of 150 slums, with over 120 already completed.
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 area of the Renewed Hope Social Housing program of the ministry which aims to build 100 houses in the 774 local governments of the country, targeting low-income and underprivileged individuals.
He explained the plan to sell 70 percent of the houses to the low income earners who would pay only 30 percent of their income and the rest subsidized by the government, while the remaining 30 percent of houses would be given to the zero income, underprivileged and displaced individuals.
Dangiwa, however, noted that the social housing initiative is currently facing funding challenges that the ministry seeks solutions to.
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 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.
Dr. Al-Bahar emphasized the importance of having updated feasibility studies for the proposed projects.
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 also have to consider the cost implications, and the studies need to 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.
He further disclosed that prior to their visit to the Ministry, the Fund had signed its first partnership agreement with the Kaduna State Government on the project tagged “Reaching Out- of – School Children Program”, an occasion he described as a delightful milestone.
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.
“If you require assistance with developing proper studies, we are willing to help,” he assured.
Responding to the Minister’s outlined priority areas, Dr. Al-Bahar acknowledged their significance and reiterated the Fund’s willingness to consider them, subject to the availability of detailed feasibility studies.
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