A group, the Housing Development Advocacy Network (HDAN), has criticized the Federal Government’s allocation of ₦88.1bn to the Federal Ministry of Housing and Urban Development in the 2025 budget.
The group described it as a clear indication that affordable housing for poor citizens is not on the priority list of the present government
NewsNGR recalls that President Bola Ahmed Tinubu had last week Wednesday, presented the sum of N47.9tn as the proposed 2025 Budget to the joint sitting of the National Assembly.
But HDAN in a statement issued in Abuja on Sunday by its Executive Director, Barrister Festus Adebayo, expressed disappointment and declared that the budget allocation to the housing sector is grossly inadequate to tackle the country’s estimated 28 million-unit housing shortfall.
Adebayo noted that such insufficient funding undermines the government’s Renewed Hope Agenda, which aims to deliver 20,000 housing units annually.
He called for a substantial budgetary increase to ₦500bn and above, citing the average cost of ₦6m to N10m per housing unit required to meet the presidential deliverable.
“Unlike other sectors, budgetary provision for housing is retrievable when houses are sold. The money comes back to the government after creating jobs and boosting economic development. At least 70 per cent of the expenditure can be recovered, even if the houses are subsidized,” Adebayo noted.
He contrasted the housing sector’s potential for economic returns with other ministries such as Works, Education, and Transportation, where allocations are typically sunk costs with no direct financial recovery.
Adebayo urged President Bola Tinubu to show greater commitment to the housing sector by addressing the poor allocation in the budget.
“The government needs to match its talk on housing with action. The Renewed Hope for Housing will not be realized if the Ministry of Housing continues to be starved of funds,” he warned, adding that the reduced budget down from ₦99bn last year to ₦88bn this year, does not reflect a serious approach to tackling Nigeria’s housing crisis.
The HDAN leader further criticized the lack of provision for key initiatives like the Family Homes Fund Limited and Federal Housing Authority for a more conducive environment for them to thrive, as he commended the government’s establishment of the MOFI Real Estate Investment Fund, expected to launch in 2025.
“HDAN will be at the forefront to ensure that MOFI’s mandate is achieved and that Nigerians benefit from these initiatives,” he added.
The housing ministry’s allocation was highlighted as disproportionate compared to other ministries. For example, the Ministry of Works received over ₦926bn, the Ministry of Water Resources and Sanitation ₦114bn, and the Ministry of Power ₦531bn. Adebayo questioned why a sector with significant economic and social benefits continues to be underfunded.
“This disparity underscores a lack of prioritization of housing, which is a critical need for Nigerians,” he said.
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