The Minister of Housing and Urban Development, Mr. Ahmed Dangiwa, yesterday disclosed that Nigeria would need about N5.5 trillion annually to build roughly 55,000 housing units every year if the country aspires to close the current housing deficit in the next 10 years.
Speaking on the ministry’s strategy to tackle the housing deficit, the minister stated that Nigeria would need approximately 550,000 housing units annually for the next 10 years, at a cost of N5.5 trillion per year. “I pointed out that from research, Nigeria’s population is over 220 million with a growth rate of 2.5% per annum, requiring about 550,000 units over the next 10 years to meet the housing deficit. I also noted that this would require about N5.5 trillion per annum to be fixed,” Dangiwa said.
“While I acknowledge that these cannot come from the government and that we are working on PPPs and other sources of housing finance to bridge the gap, it is necessary for the government to do more in terms of budgetary allocation to Housing & Urban Development,” he added.
“On this basis, we made a solemn request for the budgetary allocation of a minimum of N500 billion Budgetary Allocation Per Annum for the Renewed Hope Cities and Estates Programme so that we can create more impact and enable more Nigerians to have access to decent shelter. I am happy to say that this was well received by all the National Assembly Committees. This means we are on course to triple our impact in the 2nd year, God willing,” Dangiwa stated.
The minister also emphasized that beyond increased budgetary allocation, the ministry is committed to exploring all possible housing financing options to address the country’s massive housing deficit.
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“We may not have the financial war chest, but we have leverage as a government. For far too long, we have failed to maximize our relationships with bilateral and multilateral institutions, including those in which we have substantial interests. We have seen where smaller African countries are taking advantage of these housing development institutions to boost housing for their citizens while we simply watch. Within this one year, we have taken steps to change this,” he explained.
Dangiwa further announced that the ministry is set to sign a Housing Development Partnership with Shelter Afrique Development Bank, under which the Pan-African Housing Institute will support the Renewed Hope programme with advisory services and financing of competent developers. “That is why I am pleased to announce that we are set to sign a Housing Development Partnership with the Shelter Afrique Development (ShafDB).
Under the Partnership, the Pan-African housing institution will support the Renewed Hope Programme with advisory services and financing of competent developers. We are looking at about 5,000 housing units in the pilot. This will be the first time that the ministry is entering into such a practical and direct partnership with a multilateral institution for the construction of homes for Nigerians. Nigeria is the second largest shareholder in ShafDB only after Kenya with over $29 million share subscription,” he said.
Speaking about the progress of the Renewed Hope Cities and Estates Programme, Dangiwa revealed that the ministry has already initiated the construction of 6,612 housing units across 13 locations nationwide. “We have made substantial progress in increasing the stock of affordable and decent housing for Nigerians with the groundbreaking for 6,612 housing units across 13 locations nationwide under the Ministry’s Renewed Hope Cities and Estates Programme.
This includes the 3,112-housing unit Renewed Hope City in Karsana Abuja, under Public Private Partnership (PPP). Twelve other locations are being funded under the 2023 Supplementary Budget and they include the 500 Renewed Hope City in Kano and 250 Renewed Hope Estates in Katsina, Yobe, Gombe, Sokoto, Ebonyi, Abia, Akwa Ibom, Delta, Benue, Nasarawa, Osun and Oyo,” he stated.
The Renewed Hope Cities will comprise one, two, and three-bedroom blocks of flats; two-, three-, and four-bedroom terraces; four-bedroom duplexes; and five-bedroom duplexes. Meanwhile, the Renewed Hope Estates will cater to low- and medium-income earners, comprising one-, two-, and three-bedroom semi-detached bungalows.
