FG seeks $6.25bn annual investment to bridge housing deficit

The Federal Government has revealed that Nigeria requires an annual investment of $6.25bn to address the country’s housing deficit, estimated at over 28 million units.

The Minister of Housing and Urban Development, Ahmed Dangiwa, disclosed this recently at the Renewed Hope Housing Public-Private Partnership Summit held in Abuja.

Dangiwa emphasised that despite numerous housing policies and strategy papers, inconsistent implementation, lack of political will, and poor coordination have hindered progress in the sector.

“Under the administration of His Excellency, President Bola Ahmed Tinubu, we are determined to break this cycle of inaction and deliver tangible results,” he stated.

The minister highlighted that to bridge the housing gap and meet the rising demand, the country must deliver 500,000 housing units annually over the next decade.

“At an average cost of N10m per unit, this translates to an annual financial requirement of over N5tn (approximately $6.25 bn).

This scale of investment necessitates a collaborative strategy involving both the government and the private sector,” he said.

He noted that over 70 per cent of Nigeria’s 43 million housing units do not meet basic standards of habitability, safety, sanitation, accessibility, and infrastructure.

“For instance, only 3.30% of households have access to piped water, 24.00 per cent have access to sewage systems, and just 51.70 per cent are connected to the national grid,” he added.

To address these challenges, the government is implementing the Renewed Hope Housing Programme and the National Urban Renewal and Slum Upgrade Programme.

Dangiwa stressed that public-private partnerships are central to achieving large-scale affordable housing and urban development.

“We have made public-private partnerships a key part of our efforts to ensure that we conceive and implement large-scale affordable housing and urban development interventions and create significant impact nationwide,” he said.

As part of this strategy, the government is working with a consortium of developers to deliver 100,000 housing units under a PPP framework.

“Under phase one of the MoU, we aim to deliver seven Renewed Hope Cities targeting the Federal Capital Territory, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa, where there is effective demand for housing,” Dangiwa said.

He added that construction is already underway, with 6,612 housing units in progress in the FCT, Lagos, and Kano.

Additionally, the ministry has signed a landmark partnership agreement with Shelter Afrique Development Bank to deliver 5,000 housing units in its first phase, with plans for nationwide expansion.

“This agreement is historic because it marks the first time the Federal Government, through the ministry, is directly collaborating with ShafDB to access developer finance for affordable housing,” Dangiwa stated.

Beyond financing, ShafDB will provide technical advisory services, including a comprehensive assessment of Nigeria’s housing market and the development of PPP transaction models for affordable housing and urban renewal projects.

The minister also highlighted plans for specialised housing projects, such as ‘Renewed Hope Medic Cities’ for healthcare workers, along with ongoing discussions on revitalising the Centenary City project.

Dangiwa urged the private sector to collaborate with the government in addressing the housing deficit.

“We need more PPPs with technically and financially capable partners to deliver the Renewed Hope Agenda. If you have value to add to our work, you can be sure that you have a willing partner in us,” he assured stakeholders.

The Senate Committee on Land, Housing, and Urban Development reaffirmed its commitment to supporting public-private partnerships as a key strategy for addressing Nigeria’s housing challenges.

Speaking at the summit, the chairman of the committee, Senator Aminu Tambuwal, emphasised the urgent need for collaborative efforts to bridge the housing deficit.

“Housing is not just a fundamental human need; it is a catalyst for economic growth. Millions of citizens lack access to affordable and decent shelter. This shortfall is not just a statistic; it represents families in need, unfulfilled aspirations, and lost economic opportunities,” Tambuwal said.

He underscored the importance of leveraging PPPs to integrate private-sector innovation with government policies, regulatory frameworks, and financial support.

Tambuwal assured stakeholders of the Senate’s readiness to enact legislation that promotes transparency, removes bureaucratic hurdles, and creates an enabling environment for private-sector investment.

“As a committee on lands, housing, and urban development in the Senate, I reaffirm my dedication to supporting progressive policies and legislative frameworks that foster sustainable housing development. We stand ready to collaborate with all stakeholders to facilitate this objective,” he said.

The convener of the summit, Dr Olayemi Rotsimo-Shodome, commended the engagement of policymakers, investors, and developers in tackling Nigeria’s housing challenges.

He stressed the importance of moving from discussion to action, emphasising that the success of PPPs depends on commitment from both the public and private sectors.

“The theme of this summit, leveraging PPPs to deliver the Renewed Hope Agenda for housing and urban development, is both apt and inspiring,” he said.

“We must move beyond discussions to action, ensuring that every agreement signed translates into homes for Nigerians,” he added.