The Federal Government announces that one-bedroom apartments under its Renewed Hope Estates cost between N8 million and N9 million, while similar units in Renewed Hope Cities, developed through public-private partnerships (PPP), are priced at N22 million.
Housing Minister Musa Dangiwa explains the cost difference stems from funding models. Renewed Hope Estates are subsidized by the government, with funding from budget allocations, free land from state governments, and infrastructure subsidies. This ensures affordability for lower-income groups.
In contrast, Renewed Hope Cities rely on private developers who shoulder land purchase costs and secure loans at high interest rates. These expenses, combined with infrastructure costs, drive up prices.
“A one-bedroom apartment in Karsana’s Renewed Hope City, developed through PPP, costs around N22 million. Meanwhile, the same unit under Renewed Hope Estates costs N8–9 million, thanks to government subsidies and interest-free funding,” Dangiwa states during a presentation at the State House Gallery on November 17, 2024.
Dangiwa underscores the need for PPPs to tackle Nigeria’s housing deficit, which requires 550,000 new units annually over the next decade, at an estimated N5.5 trillion yearly. He notes that budgetary allocations alone are insufficient, making PPPs essential for scaling housing delivery.
Renewed Hope Cities primarily target middle- and high-income earners who can afford market-priced housing, while Renewed Hope Estates focus on providing affordable options for low-income groups.
To expand the housing program’s reach, Dangiwa advocates for a significant increase in Nigeria’s housing budget. He reveals that the Ministry has gained National Assembly support to raise the annual housing allocation from the current N50 billion to at least N500 billion, starting in 2025.
This funding boost aims to double housing unit capacity per state from 250 to 500 and extend projects to all 36 states, ensuring broader coverage and meeting the diverse housing needs of Nigerians.
“The current budget is grossly inadequate to address the housing deficit. Increasing the allocation will ensure the Renewed Hope Housing Programme delivers affordable homes to underserved communities nationwide,” Dangiwa concludes.
With these measures, the government seeks to balance affordability with inclusivity, catering to both low-income earners and middle-class Nigerians. The Renewed Hope Programme remains central to bridging the nation’s housing gap while addressing its infrastructure challenges.
