2025: FG budgets N11.5bn for 20,000 housing units

The Ministry of Housing and Urban Development has allocated N11.5 billion in its 2025 budget for the construction of 20,000 housing units under the Renewed Hope Agenda’s housing scheme. This allocation takes slightly above 10 per cent of the total budgetary allocation of N98.1 billion by the ministry. The Renewed Hope Homes construction, which is […]

The Ministry of Housing and Urban Development has allocated N11.5 billion in its 2025 budget for the construction of 20,000 housing units under the Renewed Hope Agenda’s housing scheme.

This allocation takes slightly above 10 per cent of the total budgetary allocation of N98.1 billion by the ministry.

The Renewed Hope Homes construction, which is ongoing in some states, is targeted at addressing Nigeria’s housing deficit and providing affordable housing to low and middle-income earners.

Currently, the construction of 13,612 Renewed Hope Cities and Estates’ housing units is already at various stages of development. The remaining units needed to meet the 20,000-unit target will be financed through this allocation, which will also be used to make financial commitments for projects that are already underway.

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Beyond the Renewed Hope Agenda scheme, an allocation of N3 billion for a prototype housing scheme in Suleja, Niger State, and Ikorodu, Lagos State, has been included in the allocations under the ministry.

About Renewed Hope Estates

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

Launched in February 2024, the programme commenced with the flag-off of the 3,112-unit Renewed Hope City project in 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. The 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 the units are located.

Highlighting the disparity in funding models, Housing Minister 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 at 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 estate programme, according to the government, aims at reducing Nigeria’s housing deficit but also requires strategic planning and funding.

Estates should be affordable to low-income earners – Expert

Meanwhile, a real estate expert, Segun Olayemi, has urged the federal government to ensure that the Renewed Hope Estates are affordable to low-income earners.

According to him, the affordability will determine the success of the scheme as it will be futile for the government to budget huge sums while low-income earners cannot afford the amount.

“Looking at the website of the Renewed Hope housing estates, I will say the prices for the states is okay, but for FCT at about N49 million for a 3-bedroom flat, that is quite on the high side, and I am just thinking how many low-income earners who are supposed to be the beneficiaries will be able to afford this amount.

“Therefore, I just want the federal government to consider making these houses affordable to ordinary Nigerians who cannot afford duplexes and mansions because, naturally, the president directed that the housing scheme should be built for these classes of Nigerians.”