The Minister of Housing and Urban Development, Musa Dangiwa, has announced that federal lawmakers have expressed their support for increasing the ministry’s annual housing budget to a minimum of N500 billion, beginning with the 2025 budget cycle.
Dangiwa disclosed this during the 2024 Conference of the Property and Environment Writers Association of Nigeria (PEWAN), themed “Resolving the Financial and Regulatory Dilemma to Achieve Renewed Hope Agenda in Housing,” held in Lagos.
Represented by the Director of Press and Public Relations at the ministry, Salisu Badamasi Haiba, Dangiwa stated that the proposed budget increase would enable the government to expand housing projects across all 36 states and the Federal Capital Territory (FCT). This expansion would double the number of housing units per state from 250 to at least 500.
“Our estimates indicate that Nigeria needs to construct approximately 550,000 housing units annually over the next decade to bridge the housing deficit, which is estimated to be over 18 million units. Achieving this will require a yearly budget of about N5.5 trillion,” he said.
Dangiwa also highlighted ongoing projects funded by the 2023 supplementary budget, including the construction of 12 Renewed Hope Estates with N50 billion. An additional N27.2 billion has been allocated in the 2024 budget to complete infrastructure for these estates, with plans to further expand the programme in the 2025 budget.
On the ministry’s public-private partnership (PPP) approach, he noted that projects like the Renewed Hope Cities in the FCT, Lagos, and Kano are being implemented through agreements with a consortium of developers for the delivery of 100,000 housing units nationwide. Under this model, developers provide land and construction financing, while the government facilitates an enabling environment for housing delivery.
“The potential of the housing sector as a driver of economic growth is evident in the job opportunities generated. At an average of 25 jobs per house, the ongoing Renewed Hope Cities and Estates projects have created over 252,800 jobs for Nigerians, encompassing both skilled and unskilled workers,” Dangiwa explained.
In a lecture titled “Key Problems of Affordable Housing,” the Managing Director and CEO of UPDC, Mr. Odunayo Ojo, identified critical challenges to affordable housing. These include limited access to land, high building material costs, inadequate financing options, and exorbitant infrastructure taxes and fees.
Earlier, the Chairman of PEWAN, Mrs. Okwy Iroegbu-Chikezie, described Nigeria’s housing deficit and the simultaneous high vacancy rates in real estate as a paradox. She called for innovative strategies to tackle these issues and align the sector with the country’s developmental goals.
This development marks a significant step in addressing Nigeria’s housing crisis, with stakeholders optimistic about the implementation of the proposed budget increase.
