The Senate Committee on Lands, Housing, and Urban Development has expressed robust support for the call by the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, for an annual allocation of N500 billion to implement the Renewed Hope Cities and Estates programme.
During an oversight session, Committee Chairman Sen. Aminu Tambuwal assured the Minister of the committee’s full backing to help achieve the Ministry’s mandate, especially regarding housing development.
Also reacting, the Vice Chairman Sen. Victor Umeh highlighted the necessity of the proposed budget, citing the country’s severe housing deficit, inflation, and volatile foreign exchange rates. “At the end of the day, even that N500 billion may not be able to do so much,” he remarked.
Earlier, Arc. Dangiwa, in his briefing, emphasized the historic mismatch between the housing needs and the budgetary provisions in the sector. He stated, “Rough statistics show that we need an annual increase in housing stock of about 550,000 units over the next ten years to meet the need. This would require about N5.5 trillion per annum. We are aware that all these cannot come from the Government and are working on Public Private Partnerships and other sources of housing finance. But the government needs to do more.”
Reflecting on the insufficient allocations, Dangiwa noted, “In the 2023 Supplementary budget we got N100bn. In 2024 we received approval for about N80bn. This is a far cry from what is needed to make a difference. I am taking the opportunity to make a solemn request for your consideration, Distinguished Senators, for the provision of a minimum of N500bn Budgetary Allocation Per Annum to the Ministry. This is less than 10% of the N5.5Trn annual requirement for tackling Nigeria’s housing challenge. It is important to state that this is not free money but a profitable investment. The houses will be built, sold, and the money returned back to government over time. This is besides the jobs that will be created and the boost to the national economy.”
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He further noted, “Money spent in housing development is not wasted money. It is an economic, social, and security investment in our country. Housing is a catalyst for economic development, job creation, and it should be prioritized alongside works, roads, and bridges. In fact, over 80% of the money deployed to housing comes back in terms of value to the economy and national development.”
Dangiwa detailed milestones achieved since his appointment in August 2023, such as the initiation of 6,612 housing units across 13 states and the Federal Capital Territory. These units are expected to be completed by the end of 2024. Budgetary constraints, however, have necessitated limiting the initial plan from 500 to 250 units per state.
He also highlighted the Slum Upgrade and Urban Renewal programme in 26 locations and the inauguration of Four Reforms Task Teams to entrench synergy between housing institutions, enhance their housing delivery capacities, develop actionable blueprints for implementing land reforms and establishing a National Land Commission, as well as set up modalities for establishing Building Materials Manufacturing Hubs in the six (6) geopolitical zones of the country.
Other Committee members urged the Minister to expand the programme to include more states. The Minister reiterated that the main criterion for project siting is the provision of free, unencumbered land by state governments.
