The Federal Minister of Housing and Urban Development, Musa Dangiwa, has disclosed that government-funded one-bedroom apartments under the Renewed Hope Estates Programme are priced between N8 million and N9 million.
In contrast, similar units developed through Public-Private Partnerships (Renewed Hope Cities) are sold for N22 million.
Dangiwa explained that the price difference stems from varying funding models, highlighting that Renewed Hope Estates benefit from budgetary subsidies, free land, and infrastructure support to maintain affordability.
In contrast, Renewed Hope Cities, developed exclusively under the PPP model, are financed by private developers who rely on high-interest loans and cover land acquisition and infrastructure costs, leading to higher prices.
The Housing Minister shared these details during a presentation at the State House Gallery, Aso Villa, on Sunday, November 17, 2024, with the speech later published on the ministry’s official website.
“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 facilate 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,” Dangiwa stated.
The Housing Minister outlined the rationale for adopting the PPP model, pointing to Nigeria’s housing deficit, which requires 550,000 units annually over the next decade at an estimated cost of N5.5 trillion per year. He explained that budgetary allocations alone are insufficient, making PPPs a critical strategy to scale housing delivery.
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Dangiwa stressed that PPP-driven Renewed Hope Cities are designed for high- and middle-income earners who can afford market-rate housing, while Renewed Hope Estates focus on providing affordable housing for lower-income groups, ensuring inclusivity.
He underscored the urgency of increasing the annual housing budget to tackle Nigeria’s significant housing deficit effectively. While acknowledging the importance of PPPs, Dangiwa emphasized the need for greater government funding for the Renewed Hope Housing Programme.
“As a Ministry, we have championed this advocacy, and there is now widespread recognition that the current N50 billion annual budget for housing is grossly inadequate compared to the N5.5 trillion needed annually to bridge the housing deficit,” he stated.
Dangiwa revealed that the Ministry has engaged with the National Assembly leadership, securing their support for raising the annual housing budget to at least N500 billion, beginning with the 2025 budget cycle. This increase, he explained, would enable housing projects to expand to the remaining 18 states and increase the unit count per state from 250 to at least 500, aligning with the original plan.
The Minister reiterated that this funding boost is vital to achieving the Renewed Hope Housing Programme’s goals of addressing housing needs nationwide, particularly in underserved areas, while enhancing its reach and impact.
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