In the planned N49.74 trillion budget for the fiscal year 2025, the Federal Government has set aside N11.5 billion to build 20,000 housing units as part of the Renewed Hope Agenda housing scheme.

This sum is part of the N98,129,466,213 overall budgetary allotment for the Federal Ministry of Housing and Urban Development.

By offering affordable housing options to all Nigerians, the ongoing project seeks to alleviate the country’s housing shortage.

The government’s dedication to improving housing infrastructure and guaranteeing that Nigerians have access to adequate homes is reaffirmed by this large expenditure.

As of right now, 13,612 Renewed Hope Cities and Estates housing units are being built at different phases of development. This allocation will be used to finance the remaining units required to reach the 20,000-unit target, as well as to make financial commitments for ongoing initiatives.

Beyond the Renewed Hope Agenda scheme, an allocation of N3 billion for a prototype housing scheme in Suleja, Niger State, and Ikorodu, Lagos State, was included in the allocations under the Ministry of Housing and Urban Development.

What you should know

The Renewed Hope Estates and Cities Programme is a flagship initiative of the President Bola Tinubu administration designed to bridge the gap in Nigeria’s housing sector.

• Launched in February 2024, the program commenced with the flag-off of the 3,112-unit Renewed Hope City project in the Karsana District, Phase 3, Federal Capital Territory, Abuja.
• The Renewed Hope Cities are being developed through public-private partnerships (PPPs), where private developers shoulder the costs of land acquisition and infrastructure. These developers also rely on high-interest loans to finance the projects, resulting in higher housing costs.
• Conversely, the Renewed Hope Estates are funded through budgetary provisions, benefiting from government subsidies for infrastructure and free land provided by state governments where these units are located.
• Highlighting the disparity in funding models, Housing Minister Musa Dangiwa revealed during a November 2024 presentation at the State House Gallery, Aso Villa, that one-bedroom apartments under the Renewed Hope Estates Programme are priced between N8 million and N9 million, while those developed through PPPs (Renewed Hope Cities) cost N22 million.

However, the budgetary allocation for the Ministry of Housing and Urban Development in the proposed 2025 budget falls short of what the minister deems necessary to address Nigeria’s housing deficit. According to Dangiwa, an annual investment of N5.5 trillion is required to tackle the housing crisis effectively. During his advocacy with the National Assembly leadership, he secured their support for increasing the annual housing budget to a minimum of N500 billion, starting with the 2025 budget cycle.

This ambitious program represents a critical step toward reducing Nigeria’s housing deficit, but it also highlights the need for sustained funding and strategic planning to achieve its long-term goals.