The Ministry of Housing and Urban Development has revealed plans to introduce an initiative aimed at revolutionising inclusivity and affordability in Nigeria through the introduction of cross-subsidies in housing projects.
A statement signed by the Special Adviser on Media to the Minister of Housing and Urban Development, Mark Chieshe, said the visionary strategy, championed by the Honorable Minister of Housing and Urban Development, Ahmed Dangiwa, promises to redefine housing accessibility by integrating a mix of low, medium, and high-end housing projects, ensuring inclusivity for Nigerians of all income brackets.
It stated, “Dangiwa, unveiled this innovative approach while reviewing affordable housing options presented by the Ministry’s Affordable Housing Building Design Committee. The Minister had established the Committee during his first week in office to review designs of the Ministry’s projects and ensure that houses that the Ministry promotes fall within price ranges that low- and medium-income earners can afford.
“The revised designs featured several cost-saving changes including organic one-bedroom bungalows to lower the cost of purchase while allowing beneficiaries the latitude to expand to two and three-bedrooms as their income increases, optimised space management, smart roofing techniques, and basic internal finishings amongst several others.”
In his remarks, Dangiwa commended the Design Team for their creativity. He also emphasised the necessity of embracing innovative concepts like cross-subsidies to counter the challenges posed by inflation, and the soaring costs of building materials, which have led to an increase in planned house prices.
He said, “I am impressed with the work that the affordable housing design Team has accomplished, thus far, in reducing the cost of houses that we plan to promote so that all Nigerians can benefit. While there is progress, the escalating cost of building materials has almost taken off all the savings from the revised designs. For us to achieve our goals, we have to think out of the box and embrace creative solutions. This is why we plan to work out a comprehensive framework for introducing cross-subsidies in projects delivered through Public Private Partnerships and the agencies under the Ministry.”
The Minister explained that cross-subsidies were important policy tools used by governments and urban planners to address housing affordability issues and promote inclusive urban development.
He added that the approach involved redistributing the costs and benefits of housing development across different income groups.
