The federal government has stated that a massive N55 trillion will be required to address Nigeria’s housing deficit during the next ten years.
Arc. Ahmed Musa Dangiwa, Minister of Housing and Urban Development, made the announcement yesterday in Abuja during a special press briefing to commemorate his first anniversary in office.
In order to guide them in implementing reforms and initiatives that will increase access to affordable housing for Nigerians and unlock the potential of the housing sector to contribute to economic growth and improve the country’s urban landscape, he noted that upon taking office, they developed an Action Plan in line with the Presidential Priorities and Deliverables of President Bola Tinubu, alongside Minister of State for Housing Abdullahi Gwarzo.
Speaking on the ministry’s strategy to solve the housing shortage in the country, the minister estimated that Nigeria would need to build 550,000 housing units annually for the next ten years, at a cost of N5.5 trillion annually.
“I informed her that, according to studies, Nigeria’s population of over 220 million, with a 2.5% annual growth rate, will require around 550,000 units to meet the housing gap over the next ten years. I also noted that this would require approximately N5.5 trillion each year to be corrected.
“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” .
“On this basis, we made a solemn plea for a financial allocation of at least N500 billion per year for the Renewed Hope Cities and Estates Programme so that we can have a greater effect and provide more Nigerians with adequate shelter. I am pleased to report that this was warmly accepted by all National Assembly Committees. This implies, God willing, we will triple our influence in the second year.
The minister stated that, in addition to increased budgetary allocation, the ministry was committed to exploring all potential housing financing methods to address the country’s significant housing gap.
“We may not have a financial war chest, but we do have leverage as a government. For far too long, we have failed to fully use our connections with bilateral and international institutions, including those in which we have significant interests. We’ve seen smaller African countries take use of these housing development agencies to improve housing for their citizens while we stand by. “We’ve taken steps to change this in the last year,” he continued.
He also stated that the ministry was about to negotiate a Housing Development Partnership with Shelter Afrique Development Bank, under which the Pan-African Housing Institute will provide advisory services and finance to qualified developers for the Renewed Hope programme.
