… Says Inflation and Massive Deficit Make Current Budget Meaningless

… Minister Says Allocation for Housing Development Is Not Free Money But a Profitable Investment

The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, is pushing for an annual allocation of N500 billion to support the Renewed Hope Cities and Estates program, and the Senate Committee on Lands, Housing, and Urban Development has thrown its support behind this effort.

Sen. Aminu Tambuwal, the chairman of the committee, responded to the minister’s briefing during an oversight invitation by assuring him of his full support in ensuring he fulfills the Ministry’s mandate, particularly with regard to housing development.

Sen. Victor Umeh, the Vice Chairman, also reacted, pointing out that the Minister’s case for N500 billion is legitimate in light of the nation’s severe housing deficit, inflationary trends, and unsettling foreign exchange. “In the end, that N500 billion might not be able to accomplish much,” he remarked.

Earlier in his briefing, Arc. Dangiwa mentioned that the nation’s housing and urban development needs have long outpaced the budgetary provisions made for the housing and urban sector.

The needs of our nation in terms of housing and urban development and the available budgetary resources are severely out of balance. Based on approximate data, we will require an annual increase in housing stock of roughly 550,000 units over the next ten years in order to meet demand. It would cost roughly N5.5 trillion annually to do this.

“We are working on public-private partnerships and other sources of housing finance because we are aware that the government cannot provide all of these. But more has to be done by the government,” he stated.

He bemoaned the inadequate funding but acknowledged the Ministry’s transformative efforts over the past year. “We received N100 billion in the 2023 Supplementary Budget. We were approved for roughly N80 billion in 2024. This is insignificant compared to what is required to change things.

“Distinguished Senators, I am utilizing this opportunity to respectfully ask for your thoughtful consideration of providing the Ministry with a minimum of N500 billion in annual budgetary allocation. This represents less than ten percent of the yearly N5.5 trillion needed to address Nigeria’s housing crisis. It is crucial to emphasize that this is a profitable investment rather than free money. Over time, the houses will be constructed, sold, and the proceeds will be given back to the government. This is in addition to the jobs that will be generated and the improvement in the US economy.

“It is important to stress that funding for housing development is not squandered. It is an investment in our nation’s economy, society, and security. Prioritizing housing along with construction, roads, and bridges is important because it stimulates economic growth and job creation. Indeed, more than 80% of the funds allocated to housing have a positive impact on the economy and the advancement of the country, the speaker stated.

The Minister added that achieving a $1 trillion economy, creating jobs, and assisting in the 100 million Nigerians who are currently living in poverty are all top priorities for President Bola Tinubu’s administration. Housing development is a major driver of these outcomes.

After launching the Renewed Hope Cities and Estates program in February 2024, President Bola Tinubu has flagged off 6,612 housing units across 13 states and the Federal Capital Territory. Dangiwa also took time to brief the lawmakers on the milestones attained by the Ministry since his appointment in August 2023. By the end of 2024, the majority of the units are expected to be finished.

He stated that while the Ministry had originally intended to construct 500 housing units as part of Renewed Hope Estates in each of the 30 states, financial restrictions have compelled them to settle for 250 units per state for the time being.

Other significant achievements include the Slum Upgrade and Urban Renewal program, which is being implemented in 26 locations nationwide, and the creation of Four Reforms Task Teams, which aim to strengthen the collaboration between housing institutions, improve their ability to provide housing, create workable plans for enacting land reforms and creating a National Land Commission, and establish procedures for the establishment of Building Materials Manufacturing Hubs in each of the nation’s six geopolitical zones.

The Minister emphasized that the only requirement for siting the projects is the provision of free, unencumbered land by the state governments. Other committee members urged the Minister to quickly expand the program to accommodate more states not included in the first round of Ground-breaking exercises