Housing not FG priority, says HDAN, decries 2025’s N88bn allocation

Housing not FG priority, says HDAN, decries 2025’s N88bn allocation 

 

The Housing Development Advocacy Network (HDAN) has criticised the Federal Government’s allocation of N88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget.

It described it as a clear indication that affordable housing for poor citizens was not on the priority list of the present government.

This is contained in a statement released in Abuja by the HDAN Executive Director, Festus Adebayo, expressing disappointment at the situation.

He said the budget allocation was grossly inadequate to tackle the country’s estimated 28 million-unit housing shortfall.

Adebayo noted that such insufficient funding undermined the government’s Renewed Hope Agenda aimed to deliver 20,000 housing units annually.

He called for a substantial budgetary increase to N500 billion and above, citing the average cost of N6 million to N10 milion per housing unit 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% of the expenditure can be recovered, even if the houses are subsidised,” Adebayo noted.

He compared 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.

“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,” he warned, adding that 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.

The HDAN leader also criticised the lack of provision for key initiatives such as the Family Homes Fund Limited, Federal Housing Authority, calling for a more conducive environment for them to thrive.

He however commended the government’s establishment of the MOFI Real Estate Investment Fund, expected to launch in 2025.

“HDAN will be at the forefront to ensure that MOFI’s mandate is achieved and that Nigerians benefit from these initiatives,” he added.

The housing ministry’s allocation was highlighted as disproportionate compared to other ministries. For example, the Ministry of Works received over N926 billion, the Ministry of Water Resources and Sanitation N114 billion, and the Ministry of Power N531 billion. Adebayo questioned why a sector with significant economic and social benefits had continued to be underfunded.

“This disparity underscores a lack of prioritization of housing, which is a critical need for Nigerians,” he said.

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.

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

He recommended alternative approaches, including rental housing schemes with ownership options, partially completed housing units to lower initial costs, and site-and-service schemes that could 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 prioritise 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 called for improved oversight to ensure that allocated funds are effectively utilised, delivering the promised housing units within the specified timeframe.

According to the statement, the HDAN is a nonprofit organisation dedicated to advancing affordable housing in Africa and it has continued 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,” it stated.