The Federal Government has revealed that Nigeria needs an annual investment of $6.25bn to bridge its housing deficit, which stands at over 28 million units.
Urgent Need for Housing Investment
The Minister of Housing and Urban Development, Ahmed Dangiwa, made this disclosure at the Renewed Hope Housing Public-Private Partnership Summit in Abuja.
Dangiwa lamented that despite multiple 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,” he stated.
He stressed that to close the housing gap and meet growing demand, Nigeria must deliver 500,000 housing units annually for the next 10 years.
“At an average cost of N10m per unit, this translates to an annual financial requirement of over N5tn (approximately $6.25bn). This scale of investment necessitates strong collaboration between the government and the private sector.”
Current State of Housing in Nigeria
Dangiwa highlighted that over 70% of Nigeria’s 43 million housing units fail to meet basic habitability, safety, and infrastructure standards.
Only 3.3% of households have access to piped water
24% have access to sewage systems
51.7% are connected to the national grid
Government’s Strategy for Affordable Housing
To address these issues, the government is rolling out the Renewed Hope Housing Programme and the National Urban Renewal and Slum Upgrade Programme.
Dangiwa emphasized that Public-Private Partnerships (PPPs) are critical to delivering large-scale affordable housing and urban development.
“We have made public-private partnerships central to our efforts, ensuring large-scale affordable housing projects create significant nationwide impact.”
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 the first phase of the MoU, we are targeting seven Renewed Hope Cities in the Federal Capital Territory, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa—areas with high demand for housing.”
Currently, construction is underway for 6,612 housing units in FCT, Lagos, and Kano.
New Partnerships for Affordable Housing
The ministry has also signed a landmark partnership agreement with the Shelter Afrique Development Bank (ShafDB) to build 5,000 housing units in the first phase, with plans for nationwide expansion.
“This is the first time the Federal Government, through the ministry, is directly collaborating with ShafDB to secure developer finance for affordable housing,” Dangiwa noted.
Beyond financing, ShafDB will provide technical advisory services, including:
A comprehensive assessment of Nigeria’s housing market
Development of PPP transaction models for housing and urban renewal
The minister also announced plans for specialized housing projects, such as ‘Renewed Hope Medic Cities’ for healthcare workers, along with discussions to revitalize the Centenary City project.
Senate Pledges Legislative Support
The Senate Committee on Land, Housing, and Urban Development has reaffirmed its commitment to supporting public-private partnerships to tackle the housing crisis.
Senator Aminu Tambuwal, the committee chairman, stressed the urgent need for collaboration to address Nigeria’s housing deficit.
“Housing is not just a fundamental human need; it is a catalyst for economic growth. Millions of Nigerians lack access to affordable and decent shelter. This is not just a statistic—it represents families in need, unfulfilled aspirations, and lost economic opportunities.”
He highlighted the importance of leveraging PPPs to integrate private-sector innovation with government policies and financial support.
Tambuwal assured stakeholders that the Senate is ready to pass legislation that will:
Promote transparency in housing projects
Remove bureaucratic hurdles
Create a business-friendly environment for private-sector investment
“As the Senate Committee on Lands, Housing, and Urban Development, we are dedicated to progressive policies that foster sustainable housing development. We will collaborate with all stakeholders to make this happen,” he said.
Call for Action from Private Sector
The summit’s convener, Dr. Olayemi Rotsimo-Shodome, praised the engagement of policymakers, investors, and developers in tackling Nigeria’s housing challenges.
He stressed that the success of PPPs depends on 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. However, we must move beyond discussions to action.”
“Every agreement signed must translate into homes for Nigerians.”
