Key points
- The Federal Government is reviewing China Hyway Group Limited’s proposal to build 10,000 housing units within 30 months.
- The proposed project will use prefabricated construction technology under an Engineering, Procurement, Construction and Financing model.
- The housing units are expected to be spread across Nigeria’s six geopolitical zones if the proposal receives final approval.
Main Story
The Federal Government has begun reviewing a proposal by China Hyway Group Limited to develop 10,000 housing units across Nigeria within 30 months as part of efforts to reduce the country’s housing deficit.
The Federal Ministry of Housing and Urban Development disclosed this in a statement on Tuesday following a meeting between the ministry and a delegation from the Chinese construction company.
Under the proposal, China Hyway plans to deploy advanced prefabricated construction technology using an Engineering, Procurement, Construction and Financing (EPC+F) model.
The model will integrate project design, financing, construction and delivery into a single framework, with the proposed housing development expected to cover Nigeria’s six geopolitical zones.
Following the company’s presentation, the Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, directed the constitution of a committee of relevant directors in the ministry to conduct a comprehensive assessment of the proposal and recommend the government’s next course of action.
The Chinese delegation was led by the company’s Chief Engineer, Lewis Chima.
The Issues
Nigeria’s housing deficit remains a major challenge, fuelled by rapid population growth, urbanisation, high construction costs and limited access to affordable mortgage financing.
The country’s housing shortage is estimated at about 17 million units, while roughly 550,000 new homes would need to be delivered annually to close the gap.
Bridging the deficit could require an estimated N5.5 trillion annually over a 10-year period, highlighting the significant financing challenge facing the government.
Affordability also remains a concern. Government-funded one-bedroom apartments under the Renewed Hope Estates Programme have been priced between N8 million and N9 million, while similar units delivered through Public-Private Partnership arrangements under the Renewed Hope Cities Programme cost about N22 million.
The China Hyway proposal is still under review and has not received final approval for implementation.
What’s Being Said
Rabe Darma said the Federal Government was prepared to support credible investors seeking to expand access to affordable housing.
“Our mandate is to ensure that more Nigerians have access to affordable and decent housing. We are therefore ready and willing to provide land in Abuja, across the states and in local government areas, subject to due process and the fulfilment of all statutory requirements,” the minister said.
He added: “This proposal is encouraging because it aligns with the Renewed Hope Housing Programme and our determination to reduce the nation’s housing deficit.”
The minister said the proposal supports President Bola Tinubu’s Renewed Hope Agenda, particularly the drive to expand access to decent, affordable and sustainable housing through strategic public-private partnerships.
China Hyway Group’s Chief Engineer, Lewis Chima, said the company’s interest in Nigeria was driven by the country’s housing shortage and economic potential.
Chima said the proposed EPC+F model could enable the company to deliver 10,000 homes within 30 months while reducing construction costs, improving quality and shortening project completion timelines.
According to him, the company is seeking a long-term partnership with the Federal Government that could also create jobs, facilitate technology transfer and support sustainable urban development.
The ministry’s Permanent Secretary, Dr. Shuaib Belgore, also assured the delegation of the government’s commitment to partnerships capable of accelerating affordable and sustainable housing delivery.
What’s Next
The committee constituted by the housing minister is expected to scrutinise the company’s technical, financing and implementation proposals before recommending whether the Federal Government should proceed with the partnership.
If approved, the project would become another major private-sector-backed housing initiative under the Renewed Hope Housing Programme.
The government is also expected to continue pursuing multiple housing delivery models, including fully funded public projects, rent-to-own schemes and PPP arrangements.
Recent interventions include the handover of 116 completed National Housing Programme units to the Benue State Government and the implementation of the Federal Mortgage Bank of Nigeria’s Rent-to-Own Scheme.
The pilot phase of the rent-to-own programme targets about 3,000 housing units nationwide, allowing eligible National Housing Fund contributors to occupy completed homes and make payments over an extended period.
Bottom Line
China Hyway Group’s proposal could add 10,000 homes to Nigeria’s housing stock within 30 months and support the government’s efforts to attract private capital into large-scale housing development.
However, the project remains a proposal. Its eventual impact will depend on the outcome of the Federal Government’s review, the viability of the financing structure and whether the homes delivered are genuinely affordable to Nigerians facing increasing housing costs.
