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By Maduka Nweke
The Housing Development Advocacy Network (HDAN) has criticised the Federal Government’s allocation of N88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget, arguing that the amount reflects a lack of commitment to addressing the nation’s housing crisis.
In a statement released in Abuja, Festus Adebayo, Executive Director of HDAN, expressed disappointment, describing the budget allocation as woefully inadequate to address Nigeria’s estimated 28 million-unit housing deficit. He argued that the allocation undermines the government’s Renewed Hope Agenda, which aims to build 20,000 housing units annually. Adebayo called for a significant increase in the housing budget to N500 billion, noting that the cost of building each unit ranges from N6 million to N10 million.
“A well-funded housing sector is a profitable investment. Unlike other ministries, housing generates returns as homes are sold, creating jobs and stimulating economic growth. At least 70% of the expenditure can be recovered, even with subsidies,” Adebayo explained.
He pointed out the stark contrast between housing’s potential economic benefits and the relatively large allocations for other sectors, such as the Ministry of Works, which received over N926 billion, and the Ministries of Water Resources and Power, which received N114 billion and N531 billion, respectively. “This disparity highlights the government’s failure to prioritize housing, despite its vast social and economic advantages,” Adebayo said.
Adebayo also expressed concern over the lack of funding for vital initiatives like the Family Homes Fund Limited and the Federal Housing Authority.
However, he commended the government’s establishment of the MOFI Real Estate Investment Fund, set to launch in 2025, and pledged HDAN’s support to ensure its success.
Experts in the housing sector echoed HDAN’s concerns, warning that the current allocation is insufficient to reform the housing sector or address the growing deficit. Rising building material costs and the ongoing foreign exchange crisis further exacerbate the challenges. Adebayo urged the government to focus on developing local building materials and stabilizing foreign exchange rates to curb escalating construction costs.
HDAN also called on the National Assembly to intervene and push for an increase in the housing budget before the final passage of the 2025 budget. Adebayo stressed that such an increase would demonstrate the legislature’s commitment to tackling Nigeria’s housing shortage.
He proposed alternative strategies, including rental housing schemes with an option to buy, partially completed housing units to reduce initial costs, and site-and-service schemes that provide infrastructure, allowing citizens to build homes at their own pace. He also emphasized the importance of engaging professionals in policy implementation and ensuring the maintenance of public housing.
Adebayo urged policymakers to adopt a systematic approach to reducing Nigeria’s housing deficit. “If we aim to build 20,000 units this year, we should set a goal of doubling that next year,” he said, underscoring the need for improved oversight to ensure that allocated funds are effectively used to deliver housing units on time.
With Nigeria’s housing deficit continuing to grow, HDAN’s call for a significant increase in the housing budget highlights the urgent need for government intervention. Without proper funding and strategic policy action, the Renewed Hope Agenda for Housing and Urban Development may fall short of its ambitious targets.
HDAN, a nonprofit organization dedicated to advancing affordable housing in Africa, remains committed to leading efforts to make housing accessible and sustainable for all Nigerians. With over 5,000 members from the housing and construction sectors, HDAN continues to advocate for innovative solutions to the nation’s housing challenges.
