The Federal Government is actively working with the National Assembly leadership to secure a significant increase in its annual housing budget, with plans to raise it to a minimum of N500 billion beginning in the 2025 budget cycle.
This move comes in response to the country’s escalating housing deficit, which the Minister of Housing and Urban Development, Ahmed Dangiwa, highlighted as a critical challenge.
Speaking to journalists during the maiden edition of the Meet the Press series, organized by the Presidential Digital Strategy and Communications team, Dangiwa expressed that the current annual housing budget of N50 billion is “grossly inadequate.”
He emphasized that the N5.5 trillion needed each year to address Nigeria’s housing deficit far outweighs the existing allocation.
He added, “This increase will allow us to expand housing projects across the remaining 18 states, boosting the unit count in each state from 250 to at least 500.”
The proposed budget increase is part of a comprehensive, four-pronged funding strategy designed to fuel the government’s Renewed Homes Initiative.
Dangiwa explained that financing housing construction is inherently expensive, prompting the government to explore creative and diversified funding strategies in line with the Renewed Hope Agenda of President Bola Tinubu. While Public-Private Partnerships (PPPs) are part of the strategy, Dangiwa stressed that these partnerships alone cannot meet the country’s housing needs.
“We have championed this advocacy,” he said. “There is now widespread recognition that the current N50 billion annual housing budget is insufficient compared to the N5.5 trillion required annually to address the housing deficit.”
To address these challenges, the Ministry has already secured the National Assembly’s support for the proposed increase.
The annual housing budget is expected to receive at least N500 billion starting in the 2025 fiscal year, marking a significant boost to the housing sector.
The Minister detailed how current funding is being utilized: The N50 billion allocated for 2023 is being used to fund 12 Renewed Hope Estates, with an additional N27.2 billion earmarked for infrastructure completion in 2024. The Ministry plans to expand these projects further in the 2025 budget cycle.
In addition to this, PPP models are being leveraged for high- and middle-income housing, with the Karsana Renewed Hope City project serving as a key example.
The project has attracted over N40 billion in financing, supported by a N100 billion bankable guarantee from the Federal Mortgage Bank of Nigeria.
However, Dangiwa emphasized that these projects cater to more affluent Nigerians, while the government remains focused on ensuring affordable housing options for low- and middle-income citizens.
Despite the use of PPPs, Dangiwa underscored the need for a stronger government role, particularly given the estimated annual shortage of 550,000 housing units.
“The public sector must significantly increase its contributions,” he said, reinforcing the importance of expanding the housing budget.
As part of the government’s strategy, the Ministry is also finalizing an agreement with Shelter Afrique Development Bank to finance the construction of 5,000 housing units with a N50 billion investment.
This collaboration marks the first direct partnership between the Nigerian government and the Pan-African financial institution.
Another crucial initiative is the establishment of the National Social Housing Fund which aims to provide affordable housing to low-income earners and vulnerable groups across Nigeria.
Dangiwa revealed that the Ministry is working on a proposal for the Federal Executive Council and drafting an Executive Bill to formalize the NSHF, with the goal of establishing it before the end of 2025.
“The groundwork is complete,” he confirmed. “We’ve engaged stakeholders and sent letters to the Ministry of Finance, the Budget Office, and over 10 agencies to ensure the successful creation of the NSHF.”
One of the key components of the NSHF is the idea of voluntary contributions. Dangiwa revealed that the government is encouraging 10 percent of Nigeria’s population, approximately 20 million people, to contribute N5,000 each month for one year.
This initiative could generate N1.2 trillion, enough to build around 100,000 homes for the most vulnerable communities across all 774 local government areas.
“We believe this is a viable route to raising substantial funds,” Dangiwa said. “This initiative will target the low-income groups in particular, addressing the most underprivileged segments of society.”
In line with this, the Ministry has launched the Renewed Hope Online Housing Delivery Portal, a platform designed to provide transparency, simplify the process of applying for housing, and eliminate the need for intermediaries.
The portal has already attracted over 47,600 users and has processed more than 1,000 paid applications.
Nigerians can now browse available housing units, apply for them, make payments, and track their progress towards ownership through the portal.
Dangiwa also highlighted the Federal Mortgage Bank of Nigeria’s contributions to the housing sector. Between May 2023 and November 2024, FMBN disbursed N59.3 billion in housing loans, built 2,465 housing units across various locations, and created over 61,600 construction jobs.
Additionally, the bank has provided long-term loans and other financing options to Nigerians through the National Housing Fund scheme, helping thousands of citizens to secure homes.
Despite these efforts, Dangiwa reiterated that the Federal Government must build approximately 550,000 housing units annually over the next decade to close the country’s housing gap. This goal would require an estimated N5.5 trillion each year.
“We cannot achieve this goal without increasing the housing budget,” Dangiwa concluded. “The current funding levels are simply not sufficient.”
