The Senate Committee on Lands, Housing, and Urban Development has expressed support for the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, in his request for a N500 billion annual allocation to support the Renewed Hope Cities and Estates program.
The endorsement came during an oversight meeting with the Minister, where the need for substantial investment in housing development was discussed.
Senator Aminu Tambuwal, the committee chairman, assured the Minister of the Senate’s full support, noting that it would ensure the success of the Ministry’s housing development initiatives.
Senator Victor Umeh, the committee vice chairman, also supported the N500 billion request, adding that it is necessary due to the immense housing deficit, inflationary pressures, and foreign exchange challenges facing the country.
He noted that while even N500 billion might not fully address the housing crisis, it is a critical step forward.
In his briefing, Arc. Dangiwa brought to the fore the long-standing mismatch between Nigeria’s housing needs and the budgetary provisions.
He stated that the country requires an annual increase of approximately 550,000 housing units over the next decade, which translates to a need for about N5.5 trillion annually.
The Minister pointed out that current allocations are insufficient, with the 2023 Supplementary Budget providing N100 billion and the 2024 budget approving around N80 billion.
Arc. Dangiwa emphasized that investing in housing is not merely an expenditure but a strategic investment in the economy, social stability, and national security.
He argued that housing development drives economic growth, creates jobs, and delivers significant returns to the economy.
”This investment aligns with President Bola Tinubu’s administration goals, including job creation and poverty reduction,” he said.
Since August 2023, the Ministry has made notable progress, including the launch of 6,612 housing units across 13 states and the Federal Capital Territory under the Renewed Hope Cities and Estates program. A
Although the initial plan aimed for 500 units per state, budget constraints have led to a revised target of 250 units per state for now.
The Minister also outlined additional initiatives, such as Slum Upgrade and Urban Renewal programs in 26 locations, the establishment of Reforms Task Teams, and the creation of Building Materials Manufacturing Hubs in each of Nigeria’s six geopolitical zones.
Committee members encouraged the Minister to expand the program to include more states and emphasized the importance of state governments providing free, unencumbered land for the projects.
Recall that the minister recently expressed concern over the inability of more than 80% of Nigerians to afford mortgage housing due to a lack of access to housing finance.
Dangiwa emphasized that affordability is a significant challenge that governments must address to provide sustainable housing solutions.
“Of the 43 million households, over 85% have less than N1.1 million in purchasing power. Of this, 40% (about 17.2 million households) fall into the poverty income group, and 47% (about 20.2 million) fall into the low-income group,” he explained.
