HDAN decries FG’s ₦88bn budget for housing in 2025

• Says an indication that affordable housing is not on FG priority list

The Housing Development Advocacy Network (HDAN), has decried the Federal Government’s allocation of ₦88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget, describing it as a clear indication that affordable housing for poor citizens is not on the priority list of the present government.

In a statement released in Abuja, HDAN Executive Director, Festus Adebayo, expressed disappointment, stating that the budget allocation is grossly inadequate to tackle the country’s estimated 28-million-unit housing shortfall.

Adebayo highlighted that such insufficient funding undermines the government’s Renewed Hope Agenda, which aims to deliver 20,000 housing units annually.

He advocated for a substantial budgetary increase to ₦500 billion and above, maintaining that the average cost of ₦6 million to N10milion per housing unit required to meet the presidential deliverable.

Adebayo said “Unlike other sectors, budgetary provision for housing is retrievable when houses are sold. The money comes back to the government after creating jobs and boosting economic development. At least 70% of the expenditure can be recovered, even if the houses are subsidized.”

He juxtaposed the housing sector’s potential for economic returns with other ministries such as Works, Education, and Transportation, where allocations are typically sunk costs with no direct financial recovery.

The HDAN Executive Director appealed to President Bola Tinubu to show greater commitment to the housing sector by addressing the poor allocation in the budget.

According to him, “Government needs to match its talk on housing with action. The Renewed Hope for Housing will not be realized if the Ministry of Housing continues to be starved of funds. The reduced budget down from ₦99 billion last year to ₦88 billion this year, does not reflect a serious approach to tackling Nigeria’s housing crisis.”

He also decried the lack of provision for key initiatives like the Family Homes Fund Limited, Federal Housing Authority, urging for a more conducive environment for them to thrive.

He commended the government’s establishment of the MOFI Real Estate Investment Fund, expected to launch in 2025, adding “HDAN will be at the forefront to ensure that MOFI’s mandate is achieved and that Nigerians benefit from these initiatives.”

The housing ministry’s allocation was emphasized as disproportionate compared to other ministries. For example, the Ministry of Works received over ₦926 billion, the Ministry of Water Resources and Sanitation ₦114 billion, and the Ministry of Power ₦531 billion.

Adebayo asked why a sector with significant economic and social benefits continues to be underfunded, noting that “This disparity underscores a lack of prioritization of housing, which is a critical need for Nigerians.”

Experts in the housing sector also resonated HDAN’s concerns, insisting that the 2025 allocation is insufficient to reform the sector, expand housing infrastructure, or address the growing housing deficit.

They cited the rising costs of building materials and the foreign exchange crisis as additional challenges.

Adebayo harped on the need for government intervention in developing local building materials and stabilizing foreign exchange rates to curb escalating construction costs.

HDAN also called on the National Assembly to urgently intervene and ensure an increase in the allocation for housing and urban development in the 2025 budget while the proposal is still under review.

Adebayo explained that this critical adjustment, before the budget’s final passage to Mr. President, will demonstrate a strong legislative commitment to addressing Nigeria’s severe housing deficit.

He suggested alternative approaches, including rental housing schemes with ownership options, partially completed housing units to lower initial costs, and site-and-services schemes that provide infrastructure, enabling citizens to build at their own pace.

He emphasized on the importance of engaging professionals in policy implementation and maintaining public buildings to ensure sustainability.

Adebayo also called on policymakers to prioritize the housing sector in the 2025 budget, as well as for deliberate and systematic planning to reduce the housing deficit.

“If we plan to build 20,000 units this year, we should aim to double that next year. A deliberate and systematic approach is needed to reduce the housing deficit consistently,” he added.

He also canvassed for improved oversight to ensure that allocated funds are effectively utilized, delivering the promised housing units within the specified timeframe.

HDAN’s submission is a clarion call to the authorities that with Nigeria’s housing deficit showing no signs of dwindling, and without increased funding and significant policy interventions needed for affordable and sustainable housing solutions, the Renewed Hope Agenda for Housing and Urban Development risks falling short of its determined goals.

HDAN, a nonprofit organization dedicated to advancing affordable housing in Africa, continues to champion innovative solutions to the housing crisis. With a diverse membership of over 5,000 professionals from the housing and construction industry, HDAN remains at the forefront of efforts to make housing accessible and sustainable for all Nigerians.

With Nigeria’s housing deficit showing no signs of abating, HDAN’s call for increased funding underscores the urgency of aligning budgetary allocations with the pressing need for affordable and sustainable housing solutions. Without significant financial and policy interventions, the Renewed Hope Agenda for Housing and Urban Development risks falling short of its ambitious goals.