The National Assembly approves an additional N50 billion for the Federal Ministry of Housing and Urban Development in the 2025 budget, reversing an earlier reduction proposed by the Budget Office. The increased funding aims to enhance housing projects, create jobs, and settle outstanding financial commitments in the sector.
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, announces the budget adjustment during a stakeholders’ retreat in Lagos. He emphasizes that the additional funds will improve the ministry’s capacity to implement key projects and contribute to economic growth.
“The housing sector has faced years of underfunding, but this increase reflects the government’s commitment to tackling housing challenges and improving infrastructure,” Dangiwa states.
The extra allocation aligns with the government’s Renewed Hope Agenda, which focuses on expanding affordable housing and ensuring sustainable urban development.
Key Areas of Impact
The additional funding supports several ongoing initiatives, including:
- Completion of 10,112 housing units across 14 active construction sites.
- Implementation of the National Land Registration and Titling Programme, developed in collaboration with the World Bank, to simplify property ownership and attract investment.
- Recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) and reinstatement of the Federal Housing Authority (FHA) in the federal budget to strengthen housing finance.
Legislative Support and Economic Implications
Senator Aminu Waziri Tambuwal, Chairman of the Senate Committee on Lands, Housing, and Urban Development, reaffirms the legislature’s commitment to continued investment in the housing sector. Similarly, Hon. Abiante Awaji, Chairman of the House Committee on Regional Planning and Urban Development, emphasizes a multi-sectoral approach, including the reintroduction of technical education to develop skilled labor for the construction industry.
Overall Budget Adjustments
President Bola Tinubu initially proposes a N49.7 trillion budget for 2025, with N98.1 billion allocated to housing. However, the Senate later passes an adjusted N54.99 trillion budget, incorporating the additional N50 billion for the housing ministry, bringing its total allocation to N148.1 billion.
Minister Dangiwa previously highlights the significant funding gap in Nigeria’s housing sector, stating that an estimated N5.5 trillion annually is required to meet the goal of building 550,000 housing units per year over the next decade. While the approved N50 billion increase marks progress, he stresses that sustained investment is essential to effectively address Nigeria’s housing deficit.
