The Nigerian Government has revealed that Nigeria requires an annual investment of $6.25 billion to address the country’s housing deficit, estimated at over 28 million units.
This was disclosed by the Minister of Housing and Urban Development, Ahmed Dangiwa, at the Renewed Hope Housing Public-Private Partnership Summit in Abuja.
Inconsistent Implementation Hinders Progress
Dangiwa emphasized that, despite numerous housing policies and strategies, inconsistent implementation, lack of political will, and poor coordination have hindered progress in the sector.
“Under the administration of His Excellency, President Bola Ahmed Tinubu, we are determined to break this cycle of inaction and deliver tangible results,” Dangiwa stated.
Bridging the Housing Gap
The minister highlighted that, to bridge the housing gap and meet the rising demand, Nigeria needs to deliver 500,000 housing units annually over the next decade.
“At an average cost of N10 million per unit, this translates to an annual financial requirement of over N5 trillion (approximately $6.25 billion). This scale of investment necessitates a collaborative strategy involving both the government and the private sector,” he explained.
Housing Standards and Infrastructure Challenges
Dangiwa pointed out that over 70% of Nigeria’s 43 million housing units do not meet basic standards of habitability, safety, sanitation, accessibility, and infrastructure.
“For example, only 3.3% of households have access to piped water, 24% have access to sewage systems, and just 51.7% are connected to the national grid,” he added.
Government Programs and Public-Private Partnerships
To address these challenges, the government is implementing the Renewed Hope Housing Programme and the National Urban Renewal and Slum Upgrade Programme.
Dangiwa emphasized that public-private partnerships (PPPs) are essential to achieving large-scale affordable housing and urban development.
“We have made public-private partnerships a key part of our efforts to ensure that we conceive and implement large-scale affordable housing and urban development interventions and create significant impact nationwide,” he said.
As part of this strategy, the government is working with a consortium of developers to deliver 100,000 housing units under a PPP framework.
“Under phase one of the MoU, we aim to deliver seven Renewed Hope Cities, targeting the Federal Capital Territory, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa—where there is effective demand for housing,” Dangiwa revealed.
Ongoing Construction and Landmark Partnership
Construction is already underway, with 6,612 housing units in progress across the FCT, Lagos, and Kano. Additionally, the ministry has signed a landmark partnership agreement with Shelter Afrique Development Bank to deliver 5,000 housing units in the first phase, with plans for nationwide expansion.
“This agreement is historic because it marks the first time the Federal Government, through the ministry, is directly collaborating with Shelter Afrique Development Bank (ShafDB) to access developer finance for affordable housing,” Dangiwa explained.
Beyond financing, ShafDB will also provide technical advisory services, including a comprehensive assessment of Nigeria’s housing market and the development of PPP transaction models for affordable housing and urban renewal projects.
Specialized Housing Projects
The minister also outlined plans for specialized housing projects, such as Renewed Hope Medic Cities for healthcare workers, alongside ongoing discussions to revive the Centenary City project.
Dangiwa called on the private sector to collaborate with the government in addressing the housing deficit, urging them to partner in delivering the Renewed Hope Agenda.
“We need more PPPs with technically and financially capable partners to deliver the Renewed Hope Agenda. If you have value to add to our work, you can be sure that you have a willing partner in us,” he assured stakeholders.
Senate’s Commitment to Supporting PPPs
The Senate Committee on Land, Housing, and Urban Development reaffirmed its commitment to supporting public-private partnerships as a key strategy for addressing Nigeria’s housing challenges.
Senator Aminu Tambuwal, chairman of the committee, emphasized the urgent need for collaborative efforts to bridge the housing deficit.
“Housing is not just a fundamental human need; it is a catalyst for economic growth. Millions of citizens lack access to affordable and decent shelter. This shortfall represents families in need, unfulfilled aspirations, and lost economic opportunities,” he stated.
Tambuwal also emphasized the importance of leveraging PPPs to integrate private-sector innovation with government policies, regulatory frameworks, and financial support. He assured stakeholders of the Senate’s readiness to enact legislation that promotes transparency, removes bureaucratic hurdles, and creates an enabling environment for private-sector investment.
Call for Action
The convener of the summit Olayemi Rotsimo-Shodome, commended the engagement of policymakers, investors, and developers in tackling Nigeria’s housing challenges. He stressed the importance of moving from discussion to action, saying that the success of PPPs depends on the commitment from both the public and private sectors.
“The theme of this summit, leveraging PPPs to deliver the Renewed Hope Agenda for housing and urban development, is both apt and inspiring,” Rotsimo-Shodome concluded. “We must move beyond discussions to action, ensuring that every agreement signed translates into homes for Nigerians.”
