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The Federal Mortgage Bank of Nigeria (FMBN) has secured a N100 billion Offtaker Guarantee to support the development of the Karsana Renewed Hope City in Abuja.
The Renewed Hope Cities, located in the Federal Capital Territory (FCT), Lagos, and Kano, are part of a Public-Private Partnership (PPP) agreement under the Renewed Hope Cities and Estates Programme, designed to address Nigeria’s housing deficit.
The announcement was made by the Minister of Housing and Urban Development, Musa Dangiwa during a presentation at the State House Gallery, Aso Villa.
Dangiwa highlighted that the guarantee has already enabled developers to mobilize over N40 billion in financing, marking a major milestone in efforts to tackle the country’s housing challenges Dangiwa,
Dangiwa emphasized that the offtaker guarantee is essential for supporting developers of the Renewed Hope Cities, addressing challenges such as high land costs and double-digit interest rates on construction financing.
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He noted that the guarantee not only mitigates financial risks but also ensures timely delivery of projects while making housing units more affordable for low- and middle-income earners.
In addition to the intervention for the Renewed Hope Cities project, Dangiwa highlighted other efforts by the Federal Mortgage Bank of Nigeria (FMBN) to boost housing delivery nationwide.
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-Musa Dangiwa-Minister of Housing and Urban Development
Source: Swifteradio.com
