The Federal Government has allocated N11.5 billion in the proposed budget for the 2025 fiscal year for the construction of 20,000 housing units. This project is expected to be implemented under the Renewed Hope Agenda housing scheme. The Federal Ministry of Housing and Urban Development is also expected to take charge to ensure the plan is enacted. Nigeria’s housing project, which is currently ongoing, aims to address the nation’s housing deficit by providing affordable housing solutions. Moreover, the substantial investment acknowledges the government’s commitment to enhancing housing infrastructure. It also facilitates ensuring Nigerians have access to decent accommodation. Currently, the implementation of 13,612 Renewed Hope Cities and Estates housing units has already commenced. The remaining units needed to meet the 20,000-unit target will be financed through the budgeted allocation. The budget is also expected to be used in making financial commitments for projects already underway.
All to Know About Renewed Hope Agenda Housing
The Renewed Hope Agenda housing project is a flagship initiative of President Bola Tinubu’s administration. Its main aim is to bridge the gap in Nigeria’s housing sector.
- Launched in February 2024, the program started with the flag-off of the 3,112-unit Renewed Hope City project in Karsana District, Phase 3, Federal Capital Territory, Abuja.
- The Renewed Hope Cities are being built through Public-Private Partnerships. Private developers bear the cost of land acquisition and infrastructure. Moreover, these private developers also depend on high-interest loans to finance these projects, which increases housing costs.
- The Renewed Hope Estates are financed through budgetary allocations. It receives government subsidies on infrastructure and free land provided by state governments where such units are located.
- The Minister of Housing, Musa Dangiwa highlighted the difference in funding models. He noted that one-bedroom apartments under the Renewed Hope Estates Programme cost between N8 million and N9 million. On the other hand, those developed under PPPs-cost N22 million.
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Challenges Facing the Multi-Billion Project in Nigeria
One of the challenges highlighted in Renewed Hope Agenda housing project is on budgetary allocation. According to the Ministry of Housing and Urban Development, the proposed 2025 budget falls short of what is needed. According to the Minister, an annual investment of N5.5 trillion is needed to tackle the housing crisis better. He has made efforts to secure support in achieving this endeavor by increasing the housing budget to at least N 500 billion. Nonetheless, the ambitious program represents a critical step in reducing Nigeria’s housing deficit. Moreover, it highlights the need for sustained funding and strategic planning to achieve long-term goals.
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