FG Unlocks $125 Million Private Investment for Housing Through PPP, Cuts Project Costs By 30%
• Government leverages concessionary loans, mortgage support to lower financing costs and improve affordability •ICRC says model targets 100,000 housing units without direct federal financing of construction •36 African countries
The Federal Government has unlocked $125 million in private-sector investment for affordable housing through Public-Private Partnership (PPP) initiatives, reducing project costs by an estimated 30 percent. The move aims to deliver 100,000 housing units across selected Nigerian cities without direct federal financing of construction.
The concessionary financing, mortgage support, and risk-sharing arrangements were presented at a continental PPP forum in Addis Ababa, Ethiopia, organized by UNECA, the African Development Bank (AfDB), and the African Legal Support Facility (ALSF). This innovative financing model differs from traditional PPP structures as the private-sector partner assumes responsibility for land, design, construction financing, and execution of the project.
Key commitments from the Nigerian government include identifying off-takers for the homes, providing access roads, and facilitating access to concessionary funding through specialized housing finance institutions. The arrangement has also unlocked $19 million in single-digit interest-rate funding through the Federal Mortgage Bank of Nigeria and $20 million in concessionary loans via the Family Homes Fund.
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