The Federal Executive Council, FEC, has approved an initiative to transform Nigeria’s infrastructure and housing sector through private sector partnership, the News Agency of Nigeria, NAN, reports.
This is contained in a statement in Abuja by Ajuri Ngelale, Special Adviser to the President on Media and Publicity.
Mr Ngelale said the initiative endorsed at the council meeting on Tuesday was tailored to meet the urgent demand for critical infrastructure and affordable home ownership, fostering job creation, inclusive growth, and long-term productivity enhancement.
He said that the initiative would unlock private-sector funds, which Nigerians can access for 25-year mortgages at low interest rates to realise their dream of owning a home.
According to the president’s spokesperson, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the innovation involved collaborations between the private sector and Sovereign Owned Enterprises, SOEs.
Mr Edun said oher collaborators were the Nigeria Sovereign Investment Authority, NSIA, and the Ministry of Finance Incorporated, MoFI.
He said that the partnerships would strategically channel funding to high-impact areas, ensuring impactful economic outcomes for the people.
“This alliance signifies a significant step towards driving sustainable development and economic growth in Nigeria by leveraging private-sector resources and expertise in strategic areas of need,” the Minister said.
Mr Edun said that the initiative aimed to further strengthen the Federal Mortgage Bank and the Federal Housing Authority, enabling both public and private entities to fulfil their housing obligations.
He added that this collaboration is expected to boost the initial phase of the President’s Renewed Hope Cities project, with the aim of providing 50,000 units of homes across the country.
“The partnership includes institutional investors creating mortgages within a framework overseen by the Ministry of Finance Incorporated to enable funding.
“This structure will streamline fund transfer from private investors to the housing sector, specifically the mortgage market, encouraging affordable home ownership opportunities.
“The partnership will incorporate a specialised framework utilising a special-purpose vehicle (SPV) owned by the Nigeria Sovereign Investment Authority.
“This structure will enable institutional investors to provide sustainable long-term financing with robust oversight, reducing risks associated with large-scale government projects,” he said
The minister added that the initiative would ensure private-sector involvement in project governance, cost management, and asset delivery, offering tangible benefits to Nigerians while safeguarding investor interests.
He said that the infrastructure focus includes power generation, toll roads, and railway projects to align with the government’s economic goals.
Simultaneously, he said, the federal government would concentrate on funding essential infrastructure to enhance project viability for private-sector participation.
“Private-sector discussions and commitments indicate a potential mobilisation of around N2 trillion in long-term financing for housing and infrastructure projects nationwide.
“By collaborating with private institutional investors, the President Tinubu-led government seeks to leverage the expertise and capital of private investors to accelerate the delivery of vital projects, driving sustainable development and economic progress for all Nigerians,” he said.
The minister assured that the partnership portends numerous benefits for the Nigerian population
FEC approves initiative to meet critical infrastructure demand, affordable housing for Nigerians
