FHA DIASPORA CITY

Project Brochure

DEPARTMENT OF COMMERCIAL HOUSING

FEDERAL HOUSING AUTHORITY (FHA)

TABLE OF CONTENT

SECTION ONE: GLANCE AT THE BUHARI BRICKS

The Vision..........................................................................................3
Area of Priority...................................................................................4
Expected Impacts...............................................................................6

SECTION TWO: PROJECT’S BACKGROUND

The Diaspora Phenomena...................................................................7
Potentials of Nigerian Diaspora...........................................................9
Project’s Motivation..........................................................................10

SECTION THREE: PROJECT’S FOCUS

Introduction......................................................................................11
Project’s Aim....................................................................................12
Project’s Objectives..........................................................................13
Project’s Phases................................................................................14

SECTION FOUR: PROJECT’S DETAILS

Overview..........................................................................................15
Blocks of Luxury Flats.....................................................................15
Garden of Terrace Apartments...........................................................17
Metropolitan Conurbations ..............................................................19
Family Executive Duplexes..............................................................21
Urban Village....................................................................................23
Billionaire Green..............................................................................25

SECTION 5: PROJECT’S FINANCIAL

Introduction......................................................................................27
Construction Funds...........................................................................27
Mortgage Funds................................................................................28
Individuals Payment Plan..................................................................29

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2
 SECTION 1:
GLANCE AT THE
BUHARI BRICKS

The Vision
This is a four-year road map of the APC-led administration of
using the housing and construction industry to drive the
Nigerian economy to self reliance.

“I am quite aware of the potential impacts of the housing and

Construction industry in repositioning our economy, as well as the
development of our society, especially in skills acquisition and jobs for our
teaming unemployed. Our task as a Government is to provide the enabling
environment to exploit the housing sector for this generation of Nigerians and
those yet unborn”

His Excellency,
MUHAMMADU BUHARI 3
September, 2015.
 Areas of Priority
a, Using construction sites and related industries to mop up the
numerous unemployed Nigerian youths from idleness to
productivity and self reliance.

The Vice President of Nigeria in a handshake with the MD/CEO of the

Federal Housing Authority; during a working visit to the Presidential Villa to
discuss the Diaspora Projects. Standing beside the MD/CEO is the FHA
Executive Director of Business Development

b, A deliberate effort at increasing the supply of accommodation

to Nigerians through sustainable supply on annual basis.

“We are determined to rewrite the story of

housing in Nigeria. This Government
shall strive to provide shelter to every
citizen; irrespective of status, gender or
ethnicity. I have so far inspected over 10
sites of the 2016 National Housing
Programme and the success story is same
everywhere”
HON. MUSTAPHA BABA SHEHURI
MINISTER OF STATE POWER, WORKS & HOUSING

During the Minister’s Nation-wide tour of Housing Project

4
c, Ensuring economic growth and industrialization through
incubation of numerous housing related industrial-chain. These
include cement factories, iron and steel related productions,
finishings-related manufacturing like floor tiles, toilet and
kitchen fittings, electrical and water reticulation products etc.

Deputy Chief of Staff to the President (DCOS) welcoming the FHA Management to
the Presidential Villa; shortly before the arrival of His Excellency the Vice President

FHA Executive Management discussing the Vice President of Nigeria about

the Diaspora Housing Project. From the left is the General Manager of
Commercial Housing Department. Next to her is the Executive Director of
Housing Finance of the Agency.

5
 Expected Impact
The promised destination is to use Nigeria's human and natural
resources (especially those with direct bearing to housing and
construction sector) to turn around the fortunes of ordinary
Nigerians. Through which additional 250 thousand jobs is
created annually by the sector. Attract an investment of at least
five billion dollars ($5 Billion USD) annually into the economy, as
well as closing the housing deficit at the rate of 3.3% annua lly
for the next 10 years.

FHA Executive Management team with the Honourable Minister of Power, Works and
Housing - His Excellency Babatunde Raji Fashola during the FHA working visit to the
Minister to discuss the Diaspora City Project.

Beginning from the right is the Director of Lands, then the Director of Architectural
Services of the Ministry; who accompanied the Honourable Minister during the meeting
with the FHA ofcials.

6
 SECTION 2:
PROJECT’S BACKGROUND

The Diaspora Phenomena

The history of mankind demonstrates migratory trends since
time immemorial all over the planet for various reasons.
Historians define the human movement from Africa to the rest
of the world as the first migration; that peaked during the slave
trade. Many such migrations manifested in different ways have
continued since then. However, massive flux of people as we
know it today is a recent worldwide phenomenon.

Post cold war era globalization has brought with it an

accelerated circulation of capital, goods, information and with
it an ever increasing human migration. Modern, fast and
reliable modes of transport and communication have
contributed to this phenomenon. Nowadays 3% of the total
world population, that is, more than 200 million people lives

7
outside their birth place, and studies suggest that the figure
will rise by 2.9% annually. Even though human migration can
be caused by war and other related causes, the main factor has
now become for job opportunities and low level development
in developing countries and the presumed availability of
conducive atmosphere and opportunities in the developed
w o r l d .

Migration can be viewed differently from the angle of the

source and the destination country. There is a tendency to
consider migration as completely harmful as it drains educated
man power of the source countries, while on the other hand it
is believed that the Diaspora could contribute to the
development of their home countries through remittance,
knowledge and technology transfer.

8
 Potentials of Nigerian Diaspora
Nigerians in Diaspora constitute a very important Segment of the
nations workforce and a veritable source of foreign exchange
earning to the nation. It is estimated that over Twenty Billion
Dollars ($20,000,000,000:00) in cash and goods emanates from
Nigerian diaspora population in to the country annually.

The diaspora phenomenon is a global mechanism for people to

travel and work outside their country of origin with the view to
generating adequate resources to support a sustainable living on
their return from the diaspora. One of the first focus of diaspora
citizens globally is to secure a descent accommodation in areas of
their choice in their motherland.

This is also true with Nigerians in diaspora. Unfortunately however,

while in other countries there exist special arrangement for these
important segment of the working population to actualize their
home ownership dream, there was hitherto exist no such
arrangement in Nigeria. This therefore subject them to untold
stories of hardship and mostly ending in scam against these
unsuspecting citizens.

The Executive Chairman of the ICPC together with some Exco of the European Chapter of Nigerian in Diaspora
Organisation (NIDO) during a working visit to the Federal Housing Authority; in relation to the Diaspora Housing Projects

9
 Project’s Motivation
Stories abound on how relatives or close associates of many
diaspora citizens of Nigeria were duped of millions of Naira in
the name of sending money home for a housing project. At the
end it mostly turn out to be a criminal exploitation of their
sweat by the very people they trust.

Such victims were left with very little options thereafter.

Mostly, they are faced with the decision of how to recover
their fortunes; which at the end turns to be an opportunity
cost between staying back in Nigeria to seek redress or
forfeiting those long years saving and return back to diaspora
to start all over again.

This initiative of the Department of Commercial Housing of

the Federal Housing Authority (FHA) is meant to close that gap
towards a sustainable and secured home ownership by
Nigerians in Diaspora. It was prompted by the Independent
Corrupt Practices Commission (ICPC) at one of the working
interaction with the Federal Housing Authority.

The Executive Chairman of the ICPC responding to an issue raised by the FHA Executive management.

Impressed with the recent measures introduced in the FHA to

stem out corrupt practices in the process of home ownership in
Nigeria, the ICPC Chairman offered a further collaboration; in
line with an existing arrangement for helping Nigerians in
Diaspora towards secured transactions in our country.
10
 SECTION 3:
PROJECT’S FOCUS

Introduction
The Federal Housing Authority Diaspora City is a project
conceived by the FHA Commercial Housing Department
principally to tap into the huge opportunity provided by the
large contingent of Nigerians living in the Diaspora. The project
is designed to stimulate direct foreign investment inflow arising
from the Housing needs of Nigerians in Europe, America, Asia
and other sister African countries.

This initiative of the Department of Commercial Housing of

the Federal Housing Authority (FHA) is also meant to close the
identified gap towards a sustainable and secured home
ownership by Nigerians in Diaspora.

General Manager of Commercial Housing at the right, while General Manager of

House of Housing Finance at the left, anking the two Executive Directors and putting
the MD/CEO at the centre of the picture during a Diaspora Project Meeting.

11
 Aim of the Project
The FHA Diaspora city is the product of the Nigerian Diaspora
Housing Programme (NIDHOP) that is designed to provide
secured and sustainable home ownership for Nigerians that are
living and working outside the country, as well as for workers of
Nigerian Diplomatic Missions.

Executive Governor of
Edo State receiving formal
request from the MD/CEO
of FHA for the Diaspora
land allocation
in Benin City

Head of the Nigeria Ofce

of the UN HABITAT receiving
the Diaspora Housing
policy document from the
MD/CEO of the FHA

12
 Project's Objectives
The following comprise the pathway through which the
programme is to be driven:

Programme Design by the Federal Housing Authority; clearly

determining the initial scope, the implementation framework,
strategy for Mobilisation, as well as defining/determining roles
of stakeholders.

Development of Implementation Structures through

Appointment of project Teams/committees/ bodies from
various shades of stakeholders.

Mobilization of inputs: This has to do with putting in place a

strong mechanism for opening discussions with core investors,
developers and mortgage initiators, etc

Sourcing of suitable locations for the pilot projects in Abuja and

Benin; then spread across the other four Geopolitical zones.

Some Exco of NIDO European Chapter Receiving the FHA Diaspora

Project Brochure from the MD/CEO in the presence of the ICPC Executive
Chairman

13
 Project's Phases
In a project of this scope, it is always realistic to divide it into
phases for ease of implementation. The following phases are
therefore designed:

Phase One: This phase is literally meant to sell out the project
idea to stakeholders to enlist a strong buy-in for the project. It
involves the following:
i, identification of stakeholders.
ii, articulating a good business case.
iii, reaching out for institutional support within and outside
Nigerian government and the organized private sector.

Phase Two: This phase is meant to come up with acceptable

products in the residential project upon which all other
parameters are to be anchored. The phase also involves role
sharing amongst stakeholders.

Phase Three: This is the stage of pilot project in Abuja and

Benin. It is expected at this stage that a site is already secured,
all planning and engineering designs are completed and
approved. Implementation teams well on ground. Then a
"Ground breaking event" is organized and executed.

Phase Four: Successful completion of the pilot projects. Well

organized checking-in celebration and the launching of the
nationwide project.

14
 SECTION 4:
PROJECT’S DETAILS

OVERVIEW:
The project is starting with four House types (Flats, Duplexes, Terraces and
Bungalows). The scope per site shall be 200 hectares; on 50 hectares
neighborhood. Completion period varies from 16 to 36 weeks. The following
costing parameters are adopted to guide a possible price range of a housing
unit within the described products.
FINANCIAL SUMMARY PER 50 HECTARES NEIGHBORHOOD
Total No. of units realizable 3,920 units
Cost of Construction (Building + Infrastructure) N105.895B
Project Management Cost N5.295b
Cost of Funds (25% of total capital outlay) N5.560b
Total Project Cost N116.750b

BLOCKS OF LUXURY FLATS

These are blocks of flats on a maximum of four suspended floors; with five flats
per floor. There are two house types under this category. Two bedroom s and
three bedroom apartments. The design and concept of these flats is tailored
towards short stay rental opportunities.

The short-stay rental option makes it possible for a diaspora Allottee to use his
or her apartment whenever in Nigeria, and subletting it out for short stay by
rentals. It therefore creates more funds to the beneficiary; which could go into
settling the mortgage or additional income for some other purposes. The
luxury flats are fully serviced including that of concierge purposes.

15
COMPUTATIONS:

The proposed housing estate will comprise of 1,120 housing units/

location as follows:
✓
2 Bedroom Semi-Detached Bungalows - 560 units
✓
3 Bedroom Detached Bungalows - 560 units

Cost Planning / Financials

The following costing parameters are adopted to guide a possible
price range of a housing unit within this described product. The final
cost/price of each unit will be arrived at when other costs (such as
land) are added up.
The total project cost including building, infrastructure and project
administration is estimated at N12,648,000,000.00.

The breakdown is as follows:

✓
Buildings N9,255,000,000.00
✓
Roads, culverts and drains N1,480,800,000.00
✓
Electrical Infrastructure N987,200,000.00
✓
Mechanical Infrastructure N617,000,000.00
✓
Project admin/management N308,500,000.00

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GARDEN CITY TERRACE APARTMENTS
These are semi-detached duplexes in a row of three houses per a block. It
is targeting those members of Nigerian Diaspora that may have plans for
their families to relocate back home while the family head remains in
diaspora.

It is of two options. Either the three bedroom without service quarters or

the more spacious one of four bedrooms with attached maid room/boys
quarters and a guest room. The latter design was conceived with a
possible mind of the beneficiary to keep a part of the house permanently
for his/her use whenever in Nigeria, and the other part to be let out for
additional income generation. This idea was meant to help beneficiaries
in meeting the mortgage requirements at ease through the income to be
generated by the other part.

17
COMPUTATIONS:

10 Hectares per location to be completed in 16 – 36 weeks after project

procurement.

House Types
The proposed development shall be of 3 to 4 bedroom row-duplexes
with option of an attached maid room and such other facilities that will
enhance the amenity of the estate. The proposed estate is planned to
evolve a suitable living environment. The housing estate will comprise
of 210 housing units/ location

Cost Planning/Financials
The following costing parameters are adopted to guide a possible price
range of a housing unit within this described product. The final
cost/price of each unit will be arrived at when other costs (such as land)
are added up.
The total project cost including building, infrastructure and project
administration is estimated at N4,518,281,250.00.

The breakdown is as follows:

✓
Buildings N3,543,750,000.00
✓
Roads, culverts and drains N425,250,000.00
✓
Electrical Infrastructure N283,500,000.00
✓
Mechanical Infrastructure N177,187,500.00




✓
Project admin/ management N88,593,750.00
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METROPOLITAN CONURBATIONS
This comprise a housing project of high rise nature over a minimum of
13 suspended floors and an underground parking and services. This
idea is meant for those interested to own their houses in downtown of
major Nigerian cities. The number of floors for these type of housing
product will be determined by other factors in Nigeria; including energy
needs/demands, life style, as well as the capacity metropolitan services
of especially emergency purposes.

This single super structure is to be provided with other factors in mind;

like corporate rental opportunities or home-office options. Another
distinctive feature of this particular product is the possibility of creating
the "rent-to-own-option" for the apartments; using the advantage of
economy of scale it possesses.

19
The Development of this House Type consists of the deployment of
high rise apartments on a structure standing up to 12 suspended
floors.
The following costing parameters are adopted to guide a possible price
range of a housing unit within this described product. The final
cost/price of each unit will be arrived at when other costs (such as
land) are added up.

Total No. of units realizable = 2,520 units

Total cost of Construction (Building + Infrastructure) = N36.855b

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FAMILY EXECUTIVE DUPLEXES
These are world class duplexes for families that plan for isolated private
residences. Depending on the preferences of clients, products in these
categories are seated on a minimum of 1000 square meters; in order to
allow individual families to enjoy total comfort of privacy; through
detached service quarters and guest charlet.

A thorough affordability profiling for participants of this option is to be

made in order to ensure prompt and unencumbered flow of cash to
service the mortgage to cover this option. Similarly, clients will have the
opportunity to making choice from several options of designs, in order
to meet up with the preferences and other suitability factors inherent
with different off-takers.

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COMPUTATIONS:
Scope / Duration:
10 Hectares per location to be completed in 16 – 36 weeks after project
procurement.

House Types
The proposed development shall be of 5 bedroom detached duplexes with
complementary support spaces for BQ and Guest House and such other
facilities that will enhance the amenity of the estate. The proposed estate is
planned to evolve a suitable living environment.

The proposed housing estate will comprise of 70 housing units/ location

Cost Planning / Financials

The following costing parameters are adopted to guide a possible price range
of a housing unit within this described product. The final cost/price of each
unit will be arrived at when other costs (such as land) are added up.
The total project cost including building, infrastructure and project
administration is estimated at N4,970,587,500.00.

The breakdown is as follows:

✓ Buildings N3,898,500,000.00
✓ Roads, culvert and drains N467,820,000.00
✓ Electrical Infrastructure N311,880,000.00
✓ Mechanical Infrastructure N194,925,000.00
✓ Project admin/ management N97,462,500.00

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DIASPORA URBAN VILLAGE

The emphasis of this particular option is on the nature of the living

environment. In that the entire neighborhood is design in the image of an
African village BUT with the full compliments of urban facilities, utilities
and services. This urban village will meet the nolstagic needs of our
diaspora clientle of rural lifestyle amids the 21st century luxury they are
used to in their diaspora stations.

Three different types of

products are available under
this option; including
Bungalows. There are both
detached and semi-
detached houses, as well as
block of flats on two
suspended floors and at the
f r i n g e s o f t h e
neighborhood; in order to
create an artificial boundary
for the urban-village.

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COMPUTATIONS:

This development comprise of 1,120 housing units per location as follows:

✓
3 Bedrooms Semi-Detached Bungalows 560 units
✓
3 Bedrooms Detached Duplexes
560 units

Cost Planning / Financials

The following costing parameters are adopted to guide a possible price range
of a housing unit within this described product. The final cost/price of each
unit will be arrived at when other costs (such as land) are added up. The total
project cost including the building, infrastructure and project administration is
estimated at N12,648,000,000.00.

The breakdown is as follows:

✓
Buildings N9,255,000,000.00
✓
Roads, culvert and drains N1,480,800,000.00
✓
Electrical Infrastructure N987,200,000.00
✓
Mechanical Infrastructure N617,000,000.00
✓
Project admin/ management

N308,500,000.00

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BILLIONAIRE GREEN
In our bid to satisfy all shades of clients, a special arrangement is also made
for the upper class of Nigerians Diaspora that wish to and can afford an
affluent lifestyle similar to that found in any part of the world for the
privileged few.

The emphasis of this product is on the space, amenities and environment

that characterized this housing project. It is planned to be located only in
some few cities of Nigeria; particularly in Abuja, Lagos, & Port Harcourt.
This will be experimented at the last stage of the projects' implementation.
It is more of a resort-based luxury living and lifestyle; reminiscent to that
of Dubai Oxygen city.

The neighborhood is designed and developed in an extravagant lush

green, with numerous attractions including a golf course, water park and
compliments of designer eateries, shops and indoor recreation.

25
The basis for computation on this type of product is largely dependent
upon several factors; such as location, quality of nishing, status and
lifestyle, as well as the amenities and services providable in the
particular project size.

Some of these decisions are also taken together with the government
policy direction regarding super recreation in special residential
estate. Computations and costings on this type of project is therefore a
team work of developers and relevant stakeholders of the project.

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 SECTION 5:
PROJECT’S FINANCIALS

Introduction
This section attempts to explain how the FHA intends to finance the
Diaspora city project. The section also highlights the available sources
for mortgage finances on the table of the FHA. The section was ended
by giving some preliminary ideas of payment-plans available to
interested members of the Nigerian Diaspora.

Construction Funds
There are both local and off shore sources of project's construction
funding. Internally, the FHA is in discussions with about six local
investors in Nigeria. Two of which are commercial banks.

Off-shore funding is also being considered from China, Europe and

some American investors. None of the negotiations has however gone
further than that between the FHA and a consortium of Chinese
investors under the aegis of CHINA ENGINEERING. This consortium has
consented to a facility of 30 Billion USD; payable in 27 years; with a
moratorium of 3 years. The FHA is favorably disposed to this amongst
the other investors. We are however working to adjust the terms, if the
investors agree to 10 years moratorium: as being pushed by the FHA,
then their can hardly be any better offer, which can also afford us to use
part of the fund to cover mortgages.

The FHA is also open to discussion with any Nigerian Diaspora branch on
any other alternative funding idea. Even though major offers are always
more flexible; we however welcome medium offers but with robust
amortization.
27
 Mortgage Funds
Locally, the FHA has gone far in a collaborative arrangement with its sister
organization of the Federal Mortgage Bank of Nigeria (FMBN) on financing
the mortgage aspect of several of its projects.

On another lane, the FHA is also leveraging on its huge investment in the
Nigerian Mortgage Refinance Company (NMRC) to secure a favorable
mortgage arrangement with longer tenure from the company.

Three offers from some European companies and two American consortiums
are also on the table. Our guiding principles in the negotiations are the issues
of flexibility, security and interest rates.

Offshore funding
discussions
with an investor from
Turkey

Offshore funding discussions

with an investor from Dubai (UAE)

28
 PAYMENT PLANS
Individual payment options to be available to the Nigerian Diaspora
interested to participate in the project are also being considered as part
of the total package.

Currently, three basic options are available. The first option is that of
outright purchase of the property by any member of the Diaspora who is
capable and willing to take such an option. While this option may not be
popular, the second option is called Tranch-Payment in which the buyer
pays in four installments of 25:35::30:10; over the construction period
of the project.

The third option which is also the most popular is that of creating
mortgage on the properties selected by individual Diasporan. Under this
option a Primary Mortgage Institution is appointed to off-take the
houses on behalf of the interested persons, then create a mortgage
payment plan for the allottee to serve.

This option allows for long tenure and secured possession. The FHA is
working around to ensure that a favourable payment plan is achieved
through which ever primary mortgage institution would eventually
emerge for the purpose.

Window of discussion is still open for interested major or minor

mortgage providers locally or from the option. The guilding principle
here is the interest of our Diaspora off-takers. The best offer in terms of
credit interest, tenure and flexibility for the Diasporans is always our
watch world here.

In few weeks from now and interest registration portal is to be hosted on

the FHA website for members of the Diaspora public of Nigerians origin
to begin preliminary interactions with the special unit in the Agency; for
the purpose of actualizing the project to the latter.

N
29
26 Julius Nyerere Crescent Asokoro,
Abuja, Nigeria.
www.fha.gov.ng | mdfha@outlook.com