Federal Government To Penalize Owners Of Unoccupied Properties Amid Housing Crisis

Federal Government To Penalize Owners Of Unoccupied Properties Amid Housing Crisis

The Federal Government has unveiled plans to impose financial penalties on owners of unoccupied buildings as part of its efforts to mitigate Nigeria’s housing deficit………..READ MORE

In an exclusive interview with The Nation, the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, explained that property owners who leave their buildings vacant without leasing or selling them may face significantly higher ground rent charges.

“If we acknowledge a housing deficit while so many buildings remain vacant, there is a problem,” Dangiwa stated. “We cannot force property owners to lease or sell, but we can make holding empty properties financially challenging. For example, if a property worth N5 million annually is left unoccupied, imposing a N3 million ground rent will incentivize the owner to lease it rather than incur such high costs.”

To implement this policy, the ministry is conducting a nationwide survey of unoccupied buildings, which is expected to be completed soon. Legal experts are currently reviewing the best approach to enforce these measures without violating property rights.

Dangiwa also revealed that the government is addressing issues of substandard work in the Renewed Hope City housing projects. Some contractors have been found using inferior materials and cutting corners, with plans to rectify defects during plastering.

“We have received reports of substandard construction, and we will not tolerate it. Contractors found guilty will face sanctions, including contract termination,” he warned.

The Ministry has bolstered its oversight mechanisms, with liaison offices in all 36 states staffed by experts in architecture, quantity surveying, and construction to ensure adherence to standards. Dangiwa expressed confidence that the government’s firm stance would lead to stricter housing regulations, tackling both affordability issues and the quality of housing in Nigeria.