FG mulls N500bn housing budget for 2025

T The Federal Government says it is liaising with the National Assembly leadership to increase its annual housing budget to a minimum of N500 billion starting with the 2025 budget cycle.

The Minister of Housing and Urban Development, Ahmed Dangiwa, revealed this to State House Correspondents on Monday at the maiden edition of Meet the Press, a weekly engagement forum organised by the Presidential Digital Strategy and Communications team.

Dangiwa argued that the appeal became necessary as the N50bn annual budget for housing is “grossly inadequate” compared to the yearly N5.5tn required to address the housing deficit.

Therefore, “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 affirmed.

This forms part of a four-pronged funding strategy to finance its Renewed Homes Initiative.

He explained, “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.”

Dangiwa enumerated the funding routes, noting that first, 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.

Consequently, he underscored the importance of increasing the government’s annual housing budget, revealing that 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.


To this end, the Ministry is finalising a memo for the Federal Executive Council and an Executive Bill to the National Assembly to formalise the creation of the NSHF before the end of 2025.

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.”

Dangiwa said that although various funding options exist, the Ministry is keen on voluntary contributions of N5,000 per month for one year from 10 per cent of Nigeria’s population, estimated at 20 million people.

This initiative, he said, could generate N1.2tn, enough to build approximately 100,000 houses. The houses will target vulnerable groups across all 774 local government areas, providing 100 families in each area with two- or three-bedroom homes free of charge.

He explained, “We have various options for funding these things. One option is that we want to ensure that at least 10 per cent of Nigeria’s population makes a voluntary contribution of N5000 monthly for one year. We are going to have 1.2tn.

“10 per cent of the total population of Nigerians is almost 20 million. That contribution would be meant for the low-income bracket.”

The Minister emphasised that with Renewed Hope Cities addressing urban housing needs and the Renewed Hope Estates covering state-level housing, this new initiative focuses on local government areas to support Nigeria’s most underprivileged.

Dangiwa also revealed the Renewed Hope Online Housing Delivery Portal, a platform designed to simplify, streamline and ensure transparency in accessing homes under the Renewed Hope Housing Programme.

Through the portal, Nigerians can browse available housing units and apply and track their progress toward ownership. He said the platform has attracted over 47,605 users, with more than 1,000 paid applications recorded, reflecting strong public interest.

He maintained that the portal eliminates the need for lobbying or intermediaries, as interested individuals can visit www.renewedhopehomes.fmhud.gov.ng, select their desired house and location, apply, make payments and print a provisional offer letter.

Dangiwas disclosed that the Federal Mortgage Bank of Nigeria has disbursed N59.3bn in total housing loans, built 2,465 housing units at several locations nationwide and created 61,625 decent-paying construction jobs between May 2023 and November 2024.

He explained, “FMBN has also provided single-digit long-term loans, home renovation, and rent-to-own loans to a total of 17,980 Nigerians who contribute to the National Housing Fund Scheme.

“The biggest intervention has been the N100bn Bankable Off taker Guarantee that the Bank has provided for the Renewed Hope Cities project. So, also, Cooperative Housing Development Loan and Individual Construction Loans are intervention avenues for housing supply at concessionary rates.”

Nonetheless, the Minister lamented that the FG must build approximately 550,000 housing units annually over the next decade to close Nigeria’s housing gap. This would require about N5.5tn per annum.