Federal Government Targets N500bn Annual Housing Budget To Address Deficit

The Federal Government has announced plans to increase its annual housing budget to a minimum of N500 billion starting from the 2025 budget cycle, aiming to tackle Nigeria’s significant housing deficit. Minister of Housing and Urban Development, Ahmed Dangiwa, disclosed this during the maiden edition of the Meet the Press forum, organized by the Presidential Digital Strategy and Communications team.

Tackling the Housing Deficit

Dangiwa emphasized that the current annual housing budget of N50 billion is “grossly inadequate” compared to the N5.5 trillion needed yearly to address the deficit. The increased allocation would enable the government to expand housing projects across all states and increase the number of units per state from 250 to at least 500.

“The current N50bn provision funds only 12 Renewed Hope Estates, but with the proposed increase, we can significantly expand the scope of these projects,” Dangiwa explained.

Funding Strategies

The Ministry is adopting a four-pronged funding strategy to finance its housing initiatives under the Renewed Hope Agenda:

1.Increased Government Budget

Discussions with the National Assembly have secured support for a minimum allocation of N500bn annually, starting with the 2025 budget.

2.Public-Private Partnerships (PPPs)

Projects like the Karsana Renewed Hope City are being funded through PPPs, with a N100bn bankable guarantee from the Federal Mortgage Bank of Nigeria, enabling developers to secure over N40bn in financing.

3.Collaboration with Shelter Afrique

The Ministry is finalizing a partnership with Shelter Afrique Development Bank to build 5,000 housing units with a N50bn investment, marking a milestone in international housing collaborations.

4.National Social Housing Fund (NSHF)

Plans are underway to establish the NSHF to ensure low-income earners and vulnerable groups have access to decent housing. A proposal for its formalization will be submitted to the Federal Executive Council and National Assembly by the end of 2025.

Voluntary Contributions Initiative

Dangiwa introduced an innovative funding idea: voluntary contributions of N5,000 monthly for one year from 10% of Nigeria’s population (approximately 20 million people). This initiative could raise N1.2 trillion, enough to build 100,000 homes targeting vulnerable groups across the country’s 774 local government areas.

Digital Transformation in Housing Access

The Ministry also launched the Renewed Hope Online Housing Delivery Portal to simplify and streamline the homeownership process. With over 47,000 registered users and 1,000 paid applications, the platform ensures transparency and eliminates intermediaries.

Nigerians can visit www.renewedhopehomes.fmhud.gov.ng to browse housing options, apply, and track their progress.

Achievements So Far

Since May 2023, the Federal Mortgage Bank of Nigeria (FMBN) has:

•Disbursed N59.3bn in housing loans.

•Built 2,465 housing units nationwide.

•Created 61,625 construction jobs.

•Provided single-digit loans to 17,980 Nigerians for home renovation and ownership.

Challenges Ahead

Despite progress, the Minister highlighted the need for the government to build 550,000 housing units annually over the next decade, requiring approximately N5.5 trillion per year.

The Federal Government’s commitment to a more substantial housing budget and innovative funding approaches reflects its determination to bridge Nigeria’s housing gap and provide affordable, dignified homes for all citizens.