The Housing Development Advocacy Network has condemned the Federal Government’s allocation of N88.14bn to the Federal Ministry of Housing and Urban Development in the proposed 2025 budget.
The group described the funding as insufficient to address Nigeria’s housing deficit, estimated at 28 million units, and an indication that affordable housing for low-income earners is not a priority for the government.
In a statement issued on Sunday in Abuja, HDAN’s Executive Director, Festus Adebayo, expressed disappointment over the allocation.
He argued that the budget undermines the administration’s Renewed Hope Agenda, which aims to deliver 20,000 housing units annually.
“The allocation is grossly insufficient to tackle the housing deficit. The government needs to prioritize housing as a critical sector. At least N500bn is needed annually to make meaningful progress,” Adebayo said.
Adebayo emphasized that housing investments offer significant economic returns.
“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 stated.
He also noted that the average cost of a single housing unit ranges between N6 million and N10 million, requiring substantial funding to meet presidential targets.
Adebayo highlighted the disparity in funding for the housing ministry compared to others Ministry of Works, over N926bn, Ministry of Power N531bn, Ministry of Water Resources and Sanitation N114bn
“This disparity underscores a lack of prioritization of housing, which is a critical need for Nigerians,” he argued.
The HDAN leader criticised the lack of budgetary provisions for key initiatives such as the Family Homes Fund Limited and the Federal Housing Authority.
However, he welcomed the government’s establishment of the MOFI Real Estate Investment Fund, which is scheduled to launch in 2025, as a positive step.
“HDAN will be at the forefront to ensure that MOFI’s mandate is achieved and that Nigerians benefit from these initiatives,” Adebayo said.
Adebayo called on President Bola Tinubu to demonstrate greater commitment to the housing sector, warning that insufficient funding could derail the administration’s housing promises.
“The 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 said.
The budget allocation for housing was reduced from N99bn in the previous year to N88bn, which he termed as a step backward in tackling the housing situation.
The declaration serves as a rallying cry for the government to reconsider its priorities and devote adequate resources to a sector with substantial economic and social implications.
