The Housing Development Advocacy Network (HDAN) has 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.
The group made this call through its Executive Director, Mr Festus Adebayo while decrying the Federal Government’s allocation of N88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget,
Calling on the legislators, Adebayo said that critical adjustment before the budget’s final passage to President Bola Tinubu would demonstrate a strong legislative commitment to addressing Nigeria’s severe housing deficit.
He suggested a substantial budgetary increase to N500 billion and above, citing that an average cost of N6 million to N10 million per housing unit is required to meet the presidential deliverable.
“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 percent of the expenditure can be recovered, even if the houses are subsidised,” Adebayo noted.
He contrasted 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.
Adebayo urged President Bola Tinubu to show greater commitment to the housing sector by addressing the poor allocation in the budget.
He emphasised the need for government’s intervention in developing local building materials and stabilising foreign exchange rates to curb escalating construction costs.
He, however, recommended 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 also stressed the importance of engaging professionals in policy implementation and maintaining public buildings to ensure sustainability.
Adebayo urged policymakers to prioritize the housing sector in the 2025 budget, calling 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 said.
He also called for improved oversight to ensure that allocated funds are effectively utilised, delivering the promised housing units within the specified timeframe.
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