The Federal Government of Nigeria is moving closer to sealing a strategic partnership with the Kuwait Fund for Arab Economic Development (KFAED) in a bid to address the nation’s chronic housing deficit and accelerate sustainable urban development. The move signals a renewed push to unlock infrastructure financing for housing-related projects and attract private sector participation in the construction value chain.
The Minister of Housing and Urban Development, Ahmed Dangiwa, revealed during high-level talks with a visiting KFAED delegation that Nigeria is seeking both financial and technical support to advance flagship programmes under President Bola Tinubu’s housing agenda.
“Our focus is affordable housing and sustainable urban development. We have the vision, but we need collaborative financing and technical expertise to make it work,” Dangiwa said.
Central to the Ministry’s proposal is the creation of building material manufacturing hubs across Nigeria’s six geopolitical zones. Each hub, covering between 200–300 hectares, will be equipped with roads, drainage systems, electricity, and water, and will host factories producing roofing sheets, doors, windows, ceramic tiles, and other essential building inputs.
By localising production, the government aims to cut material costs, reduce reliance on imports, create jobs, and support small and medium-scale construction enterprises.
In addition, the Centenary City project, spanning 1,200 hectares along the Abuja Airport Road, is being positioned as a mixed-use development incorporating commercial, residential, tourism, and industrial zones — provided adequate infrastructure financing is secured.
Dangiwa also outlined ongoing urban renewal and slum-upgrading initiatives, targeting 150 underserved communities nationwide, with 120 already completed. The upgrades include roads, drainage, electricity, schools, hospitals, and sanitation systems.
A key highlight is the Renewed Hope Social Housing Programme, which aims to build 100 housing units in each of Nigeria’s 774 local government areas. Under the scheme, 70% of homes would be sold to low-income earners at a rate capped at 30% of their income, while 30% would be allocated free to zero-income, displaced, or underprivileged households.
However, the Minister admitted that funding remains a major hurdle to scaling these initiatives.
The Director-General of KFAED, Wahad Al-Bahar, commended the scope of Nigeria’s proposals but clarified that the Fund’s mandate does not extend to directly financing housing construction. Instead, KFAED is open to supporting enabling infrastructure such as transport, education, water, and agriculture — all of which underpin sustainable housing development.
Al-Bahar stressed the importance of updated feasibility studies to guide project assessment and funding decisions. He also revealed that KFAED has recently signed its first agreement in Nigeria — a soft loan to Kaduna State for the “Reaching Out-of-School Children” programme — with terms including 20–25 years maturity and low interest rates.
“If you require assistance with developing proper studies, we are willing to help,” Al-Bahar assured.
Experts say the collaboration could unlock billions of naira in ancillary investments from private developers and construction firms, provided the government can deliver infrastructure that de-risks real estate projects. Local manufacturing hubs could stabilise building material prices, reducing volatility in Nigeria’s housing market, while large-scale slum renewal could boost property values in peri-urban areas.
If executed effectively, analysts predict that the initiative could narrow Nigeria’s 28 million housing deficit over the next decade and stimulate growth across cement, steel, ceramics, and logistics sub-sectors.
The talks between the Federal Government and KFAED are expected to continue in the coming months, with both sides prioritising the completion of feasibility studies as the next step toward formalising funding agreements.