Nigeria Seeks Kuwait Fund’s Support for Affordable Housing, Urban Development Projects

The Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, has initiated discussions with the Kuwait Fund for Arab Economic Development (KFAED) to explore collaboration opportunities in infrastructure development, with a strong emphasis on affordable housing.

Speaking in Abuja on Wednesday during a meeting with a visiting KFAED delegation, Dangiwa said the potential partnership is aimed at driving sustainable urban development and improving housing access in Nigeria. His remarks were contained in a statement issued by the Ministry’s Director of Press and Public Relations, Badamasi Haiba.

The Minister outlined several key initiatives under President Bola Ahmed Tinubu’s administration that require strategic intervention. Among them is the establishment of Building Material Manufacturing Hubs across Nigeria’s six geopolitical zones. These hubs, each spanning 200 to 300 hectares, are intended to reduce construction costs and generate employment. The hubs will be fully equipped with essential infrastructure such as roads, electricity, water, and drainage.

According to Dangiwa, the Ministry has received proposals from multiple investors, with four already engaged in the project. He noted that once infrastructure is in place, plots within the hubs will be allocated to investors for medium, small, and large-scale manufacturing of construction materials like roofing sheets, tiles, windows, and doors.

The Minister also highlighted the Abuja Centenary City District project, covering over 1,200 hectares along the airport road, as another priority area needing infrastructure funding to attract commercial, residential, tourism, and industrial investments.

In the urban development space, Dangiwa discussed the Ministry’s efforts to upgrade slums by providing basic infrastructure, including roads, drainage, electricity, sanitation, schools, and hospitals. He revealed that of the 150 slums targeted under last year’s budget, over 120 have already been upgraded.

The Minister emphasized the Ministry’s need for technical assistance, especially in updating feasibility studies for major projects like the Centenary City. While a preliminary study has been done, further support is required to enhance the project’s readiness for investment.

Additionally, he outlined the Renewed Hope Social Housing Programme, which aims to build 100 homes in each of the 774 local government areas across Nigeria. The initiative targets low-income earners—70% of whom will pay just 30% of the home cost, with the balance subsidized by the government. The remaining 30% of the homes are reserved for those with zero income, including displaced persons. However, Dangiwa noted the programme is currently facing financial challenges.

In response, KFAED Director-General Dr. Waleed Al-Bahar confirmed the Fund’s interest in supporting infrastructure and social development projects, though not direct housing construction. He stressed the importance of up-to-date feasibility studies to guide the Fund’s potential interventions and said the Fund is willing to help Nigeria develop or update such studies.

Al-Bahar also referenced the Fund’s recent partnership with Kaduna State on the “Reaching Out-of-School Children Program” as a model of its engagement in Nigeria. He highlighted that the Kuwait Fund provides soft loans under favorable terms, including 20 to 25-year maturity periods and low interest rates.

While reiterating the Fund’s readiness to assist Nigeria in its housing and urban development goals, Al-Bahar emphasized that project proposals must be well-studied and clearly presented.