Would you like to receive notifications on latest updates of the following headlines?

FG reviews housing budget to N500bn for 2025

POSTED ON November 19, 2024 •   Politics      BY Benedicta Bassey
Minister of Housing and Urban Development, Ahmed Dangiwa, at the maiden edition of Meet the Press. Photo: Businessday

NIGERIA —The Federal Government on Tuesday said it is reviewing it's annual housing budget to a minimum of N500 billion starting with the 2025 budget.

The government, however, is in talk with the National Assembly leadership of over the budget review.

This was made known by the Minister of Housing and Urban Development, Ahmed Dangiwa, at the maiden edition of Meet the Press, a weekly engagement forum organised by the Presidential Digital Strategy and Communications team.

Dangiwa said the housing budget increment became necessary because the N50bn annual budget for housing is “grossly inadequate” compared to the yearly N5.5tn required to address the housing deficit.

He said, “This would allow us to expand housing projects to cover the remaining 18 states and increase the unit count per state from 250 to at least 500."

He explained that, “Financing housing construction is expensive. So, we have devised creative and diversified funding strategies to create an impact under the Renewed Hope Agenda of Mr. President.

“While pursuing PPPs [Public-Private Partnerships], the government must also increase funding for the Renewed Hope Housing Programme. As a Ministry, we have championed this advocacy, and there is now widespread recognition that the current N50bn annual budget for housing is grossly inadequate compared to the N5.5 trillion required annually to address the housing deficit.

“Therefore, we have engaged the National Assembly leadership and received their support for increasing the annual housing budget to a minimum of N500bn, starting with the 2025 budget cycle.”

Explaining further, he said, the current N50bn budgetary provision funds only 12 Renewed Hope Estates through the 2023 supplementary budget, with an additional N27.2bn allocated in 2024 for infrastructure completion. He said the Ministry plans to expand these projects in the 2025 budget.

Second, Public-Private Partnerships are being used to fund the Karsana Renewed Hope City project, where a N100bn bankable guarantee from the Federal Mortgage Bank of Nigeria enabled developers to raise over N40bn in financing. This PPP model, he said, aims to cater to high- and middle-income earners, while budget-funded Renewed Hope Estates provide more affordable options for low- and middle-income groups.

The Minister emphasised that while PPPs address housing needs for specific income levels, they cannot alone bridge the significant housing deficit, estimated at 550,000 units annually.

He said the discussions with the National Assembly have secured support for a minimum N500bn allocation beginning in 2025.

Additionally, the Ministry is finalising a partnership with Shelter Afrique Development Bank to finance 5,000 housing units with a N50bn investment, marking a milestone as the first direct collaboration with the Pan-African institution.

Lastly, the Federal Mortgage Bank of Nigeria is contributing low-cost funding to Renewed Hope Cities to ensure more affordable housing options for lower-income Nigerians, further balancing the diverse needs of citizens.

Dangiwa also announced the establishment of the National Social Housing Fund, which aims to ensure that all Nigerians, especially low-income earners and vulnerable and underprivileged groups, have access to decent and dignified housing.

He explained, “Before the end of 2025, the national social housing fund will be on the ground. The report is ready. We have done all our groundwork. We have written letters to all the stakeholders who are supposed to have a sense of belonging in the National Social Housing Fund.

“We have written the Federal Ministry of Finance, the budget office, and we have written to over 10 different agencies so that by the time we take it to the Federal Executive Council, we will have the backing of everybody.”

READ ALSO
Kano praises Emir Sanusi II’s leadership qualities in reinstatement ceremony
BY Abiodun Saheed Omodara April 2, 2025 0

KANO, Nigeria - Governor Abba Kabir Yusuf has stated that his government reinstated Khalifa Muhammad...

READ ALSO
APC caution Cross River members against unauthorize legal suits
BY Abiodun Saheed Omodara April 1, 2025 0

RIVERS, Nigeria - The cross Rivers chapter of the All Progressives Congress has wa...

READ ALSO
SERAP urges withdrawal of bill targeting Non-Voters in Nigeria
BY Abiodun Saheed Omodara March 31, 2025 0

The Socio-Economic Rights and Accountability Project (SERAP) has appealed to Senate President Godswi...

READ ALSO
Amid doubts and challenges,Tinubu celebrates 73rd birthday with gratitude to Nigerians
BY Abiodun Saheed Omodara March 30, 2025 0

President Bola Tinubu shared that he nearly abandoned his presidential ambitions for 2023 due to a m...

READ ALSO
Senate set to prioritize Tinubu’s Tax Reform Bills after recess
BY Abiodun Saheed Omodara March 30, 2025 0

The Senate is poised to prioritize the evaluation and approval of President Bola Tinubu’s tax...

READ ALSO
Proposed Age Limit Sparks Outcry Among Political Parties
BY Suleiman Jimoh March 28, 2025 0

In a move that has ignited widespread criticism and debate, Nigeria's House of Representatives recen...

READ ALSO
Nigeria, Canada forge new Aviation ties with bilateral Air services agreement
BY Abiodun Saheed Omodara March 26, 2025 0

ABUJA, Nigeria - In a notable achievement for the aviation sector, the Minister of Aviation and Aero...

READ ALSO
FG sets August deadline for irregular migrants to regularize status
BY Abiodun Saheed Omodara March 26, 2025 0

ABUJA, Nigeria - The Federal Government has revealed its intention to enforce stricter measures agai...

OUR CHANNELS:

Lagos faces severe traffic chaos as Independence Bridge repairs begin after Sallah holiday
BY Abiodun Saheed Omodara April 3, 2025 0

LAGOS, NIGERIA - Lagos residents faced a challenging situation yesterday as they returned to work fo...


FG signs $174.6M agreement with UNIDO to enhance Nigeria's industry
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government and the United Nations Industrial Development Organisation (UNIDO) have enter...


U.S. shows highest anxiety over AI Job loss amidst technological advancements
BY Abiodun Saheed Omodara April 3, 2025 0

Despite its advanced status, research indicates that the United States of America (USA) has the high...


Bayelsa communities threaten to halt oil production over security contract dispute
BY Abiodun Saheed Omodara April 3, 2025 0

BAYELSA, Nigeria - Nigeria’s struggling oil output may be on the brink of another crisis as co...


NITDA Partners Afrovision technologies to bridge job gap for Nigeria’s Tech Talent
BY Abiodun Saheed Omodara April 3, 2025 0

In an effort to tackle the ongoing challenge of job placement for Nigeria’s expanding tech tal...


Falana advocates for accountability and rule of law
BY Abiodun Saheed Omodara April 3, 2025 0

Human rights Lawyer, Femi Falana (SAN), has called on Nigerians to seek accountability from their le...


FG signals tough stance on underdeveloped Oilfields, calls for strategic IOC investments
BY Abiodun Saheed Omodara April 3, 2025 0

The Federal Government expressed its worries on Tuesday about the growing number of idle and underde...


OpenAI valuation hits $300 billion after SoftBank-led fund
BY Abiodun Saheed Omodara April 3, 2025 0

The Japanese telecommunications company, alongside a group of investors, has recently announced yet...


Fuel prices expect to fall below N750 by Year-End - NIPSS
BY Abiodun Saheed Omodara April 3, 2025 0

The National Institute for Policy and Strategic Studies (NIPSS) has said that with Dangote Refinery...


Nigeria imposes N20m fine, 10-Year Jail Term for Ponzi scheme offenders
BY Abiodun Saheed Omodara April 2, 2025 0

The Securities and Exchange Commission (SEC) has stated that promoters and operators of Ponzi scheme...


More Articles

Load more...

Menu