…1 bedroom pegged at N9m
By Maduka Nweke, [email protected]
The Renewed Hope Housing Project of President Bola Tinubu administration, envisioned as a beacon of affordable housing, is grappling with soaring costs and complex bureaucratic hurdles.
With a one-bedroom unit priced at N9 million, many Nigerians fear the initiative may fall short of its mission to bridge the nation’s housing gap and cater to the needs of low-income earners.
Prospective subscribers have expressed deep frustration, accusing the administration of abandoning its promise of delivering hope to Nigerians. They argue that by ceding too much control to private sector players without adequate regulatory measures, the government is seen as exacerbating the already dire housing crisis.
For many Nigerians, affordable housing is not just a desire but a necessity to achieve stability and security. However, rising rental costs driven by unchecked market forces have made homeownership and renting increasingly elusive, leaving intended beneficiaries disillusioned about the initiative’s impact and the administration’s commitment to their welfare.
According to Mrs. Mary Ola Nwachi, the Chief Executive Officer of General Marine & Oil Services Ltd., Nigeria stands at a critical juncture where addressing its housing deficit is imperative for sustainable development.
“Hardship is biting harder and harder, and the cost of common foodstuff has risen beyond the reach of the common man. For the government to build houses that should go under low-cost housing and peg the least apartment at N9 million shows that the interest of the public is not part of their agenda. This has helped to compound the problems of the common man.”
Another respondent, Mr. Franklin Okagbare, a property developer within Amuwo-Odofin, said that things are hard now for everyone. “Is there anyone who is not feeling the economic meltdown in the country? I don’t think that President Tinubu is really in charge. Do you want to tell me that being once governor of Lagos State, where you have the richest Nigerians and the poorest Nigerians, he doesn’t know that the population he is targeting for the one-bedroom cannot afford it? I feel those close to him are giving him wrong advice; otherwise, how can we be crying for a fuel price increase only to use another way to increase our suffering? I think he wants everyone to join the crime league because if you want everyone to be rich yet you have not created the enablers to help them upgrade, then you want them to go into crime,” he said.
Last week, the Federal Minister of Housing and Urban Development, Musa Dangiwa, during a presentation at the State House Gallery, Aso Villa, said that the government-funded one-bedroom apartments under the Renewed Hope Estates Programme will not cost N9 million. He said that Nigerians will have to pay up to N22 million to acquire one-bedroom apartments under the Renewed Hope Estates Programme of President Bola Tinubu.
He added that those developed through Public-Private Partnerships (Renewed Hope Cities) are pegged at N22 million. This did not go down well with many Nigerians who are battling to stay afloat in the face of choking economic policies of the Tinubu administration. The minister attributed the pricing differential to changes in funding systems, stating that Renewed Hope Estates is funded through budgetary provisions, including infrastructure subsidies and free land, which ensures affordability.
The minister said: “A one-bedroom apartment at the Renewed Hope City in Karsana, built under a PPP model, costs about N22 million, whereas a similar unit under the Renewed Hope Estates, funded through budgetary allocations, costs approximately N8–9 million. The difference lies in the cost of finance. Under the Renewed Hope City model, developers purchase the land and secure financing at double-digit interest rates, while as government, we facilitate a Bankable Offtaker Guarantee from the FMBN. In contrast, Renewed Hope Estates are funded with interest-free allocations from the budget. State governments provide free land, and infrastructure costs are subsidized and excluded from the housing unit prices,” he added.
The Housing Minister explained the rationale for utilizing the PPP model, citing Nigeria’s housing shortfall, which will require 550,000 units per year for the next decade at an estimated cost of N5.5 trillion. He stated that budgetary allocations alone are insufficient, making public-private partnerships a vital tool for scaling up housing delivery.
Dangiwa emphasized that PPP-driven Renewed Hope Cities cater to high- and middle-income earners who can afford market-rate housing, whereas Renewed Hope Estates are designed for lower-income groups to ensure equitable access to housing.