The Federal Government has unveiled a plan to provide free housing for 77,400 vulnerable Nigerians across the 774 local government areas under a proposed National Social Housing Fund to address housing inequality and improve the living standards of those in need. The proposed plan is pending legislative endorsement before it can commence, but Ahmed Musa Dangiwa, the Minister of Housing and Urban Development, provided insights into the program at a press conference held at the State House in Abuja. He indicated that this initiative aligns with the government’s dedication to promoting inclusive development and addressing the housing needs of society’s most vulnerable citizens.
Under the plan, each local government will receive 100 two and three-bedroom apartments. These homes, valued at about ₦10 million each, will be distributed at no cost to beneficiaries. To fund the project, the government proposes a voluntary contribution system where 10% of the population, about 20 million people, donate ₦5,000 monthly for a year. This effort is expected to generate ₦1.2 trillion to construct the housing units while prioritising transparency and accountability to build public trust. Dangiwa emphasised that the funding system depends on voluntary involvement, pointing out that many individuals might initially choose to donate over ₦60,000 to support the initiative.
Various governmental offices have been sent letters for their support.
Furthermore, the Minister confirmed that correspondence has been sent to key parties, such as the Ministry of Finance and the Budget Office, to obtain their support before submitting the proposal to the Federal Executive Council (FEC) for their approval. Meanwhile, it is scheduled for rollout by the end of 2025. This initiative is a key element of the comprehensive Renewed Hope Agenda, which aims to facilitate urban and rural housing projects and provide equal opportunities for Affordable Housing nationwide. While the National Social Housing Fund prioritises rural communities, other initiatives like the Renewed Hope Cities and Estates programs concentrate on urban areas and state capitals.
Dangiwa emphasised the ongoing efforts pursued through the Renewed Hope Agenda, which has successfully provided 10,000 housing units across 14 sites in the country. These initiatives comprise 12 estates featuring 250 units each and urban projects in Abuja, Kano, and Lagos. The Minister announced intentions to create at least one Renewed Hope City in every geopolitical zone, advancing the government’s objective of ensuring Home Ownership for everyone. Aside from tackling housing shortages, the initiative has notable economic implications.
Jobs, loan access, and transparency are key benefits of the programs.
He noted that the development of housing units has already led to the creation of more than 252,800 jobs for professionals like architects, engineers, surveyors, and skilled tradespeople such as masons, carpenters, and plumbers. The project revitalises communities and offers work opportunities by generating around 25 jobs for each housing unit. Workers in these initiatives generally receive ₦5,000 daily, resulting in monthly earnings that exceed the national minimum wage. This helps promote Economic Stability and lower crime rates. They have also rolled out affordable financing solutions to enhance homeownership opportunities.
Through the National Housing Fund, Nigerians can secure loans of as much as ₦50 million at a 6% interest rate, with a maximum repayment term of 30 years. Furthermore, a Rent-to-Own program enables individuals to distribute payments over thirty years without any upfront equity. An Online Housing Delivery Portal named Renewed Hope has been introduced. It allows residents to apply for housing units directly. The platform boasts more than 47,000 registered users and 1,000 finalised applications. It aims to streamline access and promote transparency in the allocation process.
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Even with these improvements, securing financial resources remains a critical challenge. In 2023, the government set aside ₦50 billion for the Renewed Hope Estates, while a ₦27.2 billion budget is anticipated for 2024. Collaborations between the public and private sectors have led to an extra ₦40 billion increase, including initiatives such as Karsana Renewed Hope City, which has received a ₦100 billion assurance from the Federal Mortgage Bank of Nigeria. However, Dangiwa stressed the importance of establishing an annual housing budget of ₦500 billion starting in 2025 to tackle the country’s yearly shortfall of 550,000 housing units.