With Nigeria’s housing deficit widening against the backdrop of rapid population growth, the Federal Government’s Renewed Hope Cities and Estates Programme promises a bold step toward mass homeownership. However, while the initiative offers a glimmer of hope for many, significant gaps—ranging from affordability to access—continue to dim the dream of owning a home for millions of Nigerians, reports Assistant Editor OKWY IROEGBU-CHIKEZIE
As Nigeria races towards a demographic milestone, the urgency for solutions to its housing crisis has never been greater. With a population currently estimated at 223 million and projected by the World Bank to reach 262.9 million by 2030—and a staggering 401.3 million by 2050—the country is on course to become the third most populous nation on earth. This explosive growth, while rich with economic potential, also brings with it an acute demand for housing, infrastructure, and jobs.
Among the most pressing challenges is Nigeria’s yawning housing deficit, which has long plagued urban and rural communities alike. For a forward-looking administration, addressing this shortfall is not just a developmental necessity—it is a national imperative. In a bold move to tackle the crisis, President Bola Ahmed Tinubu launched the construction of the Renewed Hope Cities and Estates in February 2024. The flagship project kicked off with 3,112 housing units in Karsana, Abuja, and was swiftly followed by similar developments across the country. Encouragingly, tangible progress is already evident—not just in the bricks and mortar of housing units, but in the broader reforms aimed at overhauling the housing sector.
At present, 14 active construction sites are underway nationwide, accounting for a total of 10,112 housing units. As part of the Renewed Hope Estates initiative, 12 estates—each comprising 250 housing units—are under construction in 12 states, representing two from each geo-political zone: North-East: Yobe, Gombe; North-Central: Nasarawa, Benue; North-West: Sokoto, Katsina; South-East: Abia, Ebonyi; South-South; and Delta, Akwa Ibom. Together, these sites are expected to deliver 3,000 homes in the first phase alone.
Meanwhile, the government has rolled out plans for Renewed Hope Cities—larger, urban-style housing schemes—beginning with developments in the Federal Capital Territory (3,112 units), Kano (2,000 units), and Lagos (2,000 units). Additional projects are in the pipeline for Enugu, Borno, Rivers, and Nasarawa. The overarching goal is to establish at least one Renewed Hope City in every geo-political zone as well as in the FCT.
Significant strides have already been made, with a substantial number of units at the roofing stage. The Federal Ministry of Housing is working closely with developers to ensure that the projects are completed and inaugurated as scheduled. For instance, at the Abuja site, 1,000 housing units are nearing completion—requiring only plastering and internal finishing. According to industry analysts, these construction efforts have generated over 252,800 jobs, based on an average of 25 jobs per unit. These include both direct and indirect employment opportunities for Nigerians across the economic spectrum. From architects, civil engineers and surveyors to masons, carpenters, electricians, plumbers, steel fixers and welders—right down to security guards, labourers, concrete pourers, and site excavators—the Renewed Hope Cities and Estates initiative is not only providing shelter, but also serving as a powerful engine of economic revival. By harnessing the potential of the housing construction sector, the initiative is delivering meaningful work, lifting thousands off the streets, and laying the foundations for a more secure and equitable future.
Opening the door to home ownership
For many Nigerians, owning a home has long seemed like a distant dream—out of reach due to soaring property prices and prohibitive mortgage requirements. But recent reforms under the Renewed Hope Agenda are beginning to shift the narrative, offering more accessible pathways to home ownership for a broader cross-section of citizens. One of the most viable routes is through the National Housing Fund (NHF) mortgage loan, administered by the Federal Mortgage Bank of Nigeria (FMBN). Under this scheme, eligible Nigerians can secure housing loans of up to N50 million, repayable over 30 years at an affordable 6 per cent interest rate. This stands in stark contrast to the steep 18–23 per cent interest charged by most commercial banks.
What makes the NHF loan particularly attractive is the comparatively low equity requirement. Unlike commercial banks that may demand up to 30 per cent equity, the NHF requires just 10 per cent. For instance, a loan of N10 million would require only N1 million as upfront equity—a potentially life-changing difference for many working-class Nigerians. Another innovative product from the FMBN is the Rent-to-Own scheme. This initiative allows contributors to the National Housing Scheme to move into a home and begin paying for it in monthly, quarterly or annual instalments, over a 30-year period, at a modest 7 per cent interest rate—all without any initial equity. It’s a model designed for flexibility, dignity, and gradual empowerment.
Critics argue that prices are still out of reach for the very people the programme intends to support. For example, a one-bedroom apartment at the Renewed Hope City in Karsana, built under a Public-Private Partnership (PPP), is priced at approximately N22 million. In contrast, a similar unit under the Renewed Hope Estates, funded via government budgetary allocations, costs around N10 million.
In response to growing public scrutiny, the government has pledged further interventions to cushion the affordability gap. Plans are underway to establish a National Social Housing Fund (NSHF)—a bold move aimed at ensuring that low-income earners, the unemployed, the vulnerable and other underprivileged groups are not left behind in the quest for decent and dignified shelter. Ultimately, the evolving suite of options and reforms signals a renewed political will to democratise home ownership in Nigeria—bridging economic divides and enabling millions to finally call a house their home.
To further strengthen its commitment to inclusive housing, The Nation has learnt that a memo to the Federal Executive Council (FEC) and an Executive Bill to the National Assembly are currently in the works to establish a National Social Housing Fund (NSHF). The proposed fund is expected to draw from diverse sources, including annual budgetary allocations, philanthropic donations, corporate social responsibility contributions, and even voluntary donations from patriotic Nigerians. Insiders close to the administration affirm that President Tinubu is approaching Nigeria’s housing challenge with gravitas and a structured, deliberate strategy. They maintain that the President clearly recognises the urgency of the situation and is resolute in his mission to rekindle citizens’ hope in the possibility of affordable, accessible, and functional housing for all.
According to Dr Olayemi Rotimi-Shodimu, one of the Conveners of the Renewed Hope Housing Public-Private Partnership (PPP) initiative, the programme seeks to offer more than just shelter—it is designed to chart a clear policy direction and provide a structured roadmap for housing-sector PPPs in Nigeria. Beyond policy, the initiative is also engineered to facilitate stakeholder engagement, bringing together key players from across the spectrum—government officials, private sector investors, and international development partners—to foster deeper collaboration and attract sustainable investment into the sector.
At the heart of this reform effort is the Renewed Hope Social Housing Programme, which forms a crucial pillar of President Tinubu’s broader agenda for inclusive growth. The programme is targeted specifically at low-income earners, the unemployed, internally displaced persons (IDPs), and other marginalised groups, spanning both the formal and informal economic sectors. One of the most ambitious components of the programme is the construction of 100 housing units in each of Nigeria’s 774 local government areas, translating to a remarkable 77,400 homes. The government aims to deliver these within a one-year timeframe—a bold undertaking that underscores the scale of its ambition.
The Minister of Housing, Ahmed Dangiwa has revealed that the ambitious Renewed Hope Social Housing Programme will be financed through the Renewed Hope Infrastructure Development Fund (RHIDF). According to him, each estate under the initiative will be developed as a complete community, equipped with vital amenities such as a primary school, healthcare clinic, recreational spaces, police outpost, and a shopping mall—all designed to foster safe, dignified living. Speaking on the all-important issue of affordability, Dangiwa explained that 80 per cent of the homes will be sold to residents of the host communities, based on their ability to pay one-third of their monthly income. “Someone earning N30,000 monthly can pay just N10,000 to own a house,” he said, underscoring the administration’s commitment to housing access for everyday Nigerians.
The remaining 20 per cent of the homes, he added, will be allocated free of charge to vulnerable Nigerians, including widows, orphans, and those with little or no income. This component ensures that no one is left behind in the government’s drive to provide inclusive and equitable housing. Dangiwa also clarified that the Renewed Hope Social Housing Programme is the third leg of a broader housing agenda, which includes Renewed Hope Cities and Renewed Hope Housing Estates. These three components work in synergy to address different layers of housing demand—urban, peri-urban, and rural.
At present, Renewed Hope Cities are under development in seven locations, namely Abuja, Rivers, Lagos, Enugu, Nasarawa, Kano, and Maiduguri—each representing one of the six geopolitical zones plus the Federal Capital Territory. These are being executed through Public-Private Partnership (PPP) arrangements, combining public vision with private sector efficiency. In addition, the federal government plans to construct 250 housing units in two capital cities per geopolitical zone, totalling 12 cities under the Renewed Hope Estates scheme. Unlike the Cities, these Estates are being directly funded through the federal budget, with a clear intent to expand further in the coming fiscal year.
Yet, despite these bold strides, housing experts warn that Nigeria’s deficit—estimated in the tens of millions—cannot be closed through conventional funding models alone. To effectively bridge the gap, at least one million housing units must be built annually for the next 20 years. This, they argue, would require extra-budgetary innovations and sustainable financing mechanisms far beyond yearly allocations.
On funding and financial innovations
Building houses is not cheap—especially not at the scale required to dent Nigeria’s housing deficit. But under President Tinubu’s Renewed Hope Agenda, the Federal Ministry of Housing and Urban Development is deploying creative, multi-layered funding strategies to make decent shelter a reality for all. According to Dangiwa, the financing model for the Renewed Hope Housing programme stands on three robust legs: budgetary allocation, public-private partnerships (PPPs), and financial engineering to bridge affordability gaps. “We understand that traditional budgetary channels alone are inadequate. So we’ve embraced diverse strategies to achieve results.”
The first strategy is direct budgetary provision. The Ministry is funding 12 Renewed Hope Estates across the country through the N50 billion 2023 Supplementary Budget, with an additional N27.2 billion allocated in the 2024 budget to complete critical infrastructure. Plans are already underway to scale the programme further in the 2025 fiscal year to cover more states. The second—and perhaps more transformative—approach is the deployment of Public-Private Partnerships. For instance, the three Renewed Hope Cities currently under development in Abuja, Lagos, and Kano are being delivered through a consortium of private developers who are expected to build up to 100,000 housing units nationwide.
Here’s how it works: the private developers source land and secure construction finance, while the government provides the enabling environment and off-taker guarantees. One of the standout examples is the Karsana Renewed Hope City, where the Ministry facilitated a N100 billion Bankable Off-taker Guarantee through the Federal Mortgage Bank of Nigeria (FMBN). This singular intervention enabled developers to mobilise over N40 billion in construction financing—an unprecedented feat in Nigeria’s housing history. To further enhance affordability, the government has introduced a cross-subsidy model. Under this model, homes in the Renewed Hope Cities are offered at commercial rates to high-income buyers, while a significant percentage is sold at concessionary prices to low- and middle-income Nigerians, particularly members of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). This strategy fosters integrated communities while ensuring that the poor are not priced out.
Still, the challenges are enormous. Experts estimate that to close Nigeria’s housing gap, the country must build 550,000 units annually for the next 10 years—a task requiring a whopping N5.5 trillion per annum. Clearly, PPPs alone are not a silver bullet. This disparity is starkly evident in the pricing. A one-bedroom unit at the Renewed Hope City in Karsana, developed under the PPP model, goes for about N22 million. In contrast, a similar unit in the Renewed Hope Estates, which are budget-funded, costs just N10 million. What accounts for this massive difference? Through this thoughtful blend of policy realism, financing innovation, and social inclusion, the Tinubu administration is trying to break the long-standing jinx of affordable housing in Nigeria.
Some may ask: Why does the government continue to pursue Public-Private Partnerships (PPPs) in housing? The answer lies in a delicate but deliberate balancing act between equity and efficiency. As Dangiwa explained, the federal government has a dual obligation: to catalyse private sector involvement in housing delivery while ensuring that every Nigerian—regardless of income—has access to decent shelter. While the PPP-driven Renewed Hope Cities cater primarily to high- and middle-income earners who can bear market-driven prices, the budget-funded Renewed Hope Estates are explicitly designed to meet the needs of lower-income Nigerians. The result is a more inclusive housing ecosystem—one that reflects both economic diversity and social responsibility.
Still, government is acutely aware that PPPs alone cannot bridge the nation’s vast housing deficit. The numbers speak for themselves: Nigeria needs to construct at least 550,000 units annually for the next decade—a feat that requires a staggering N5.5 trillion per year. By contrast, the current N50 billion annual housing budget barely scratches the surface. To change this narrative, the Ministry has launched a bold advocacy campaign, successfully engaging the National Assembly. As a result, there is now broad legislative backing for a significant increase in the housing budget. Beginning with the 2025 budget cycle, the Ministry aims to secure at least N500 billion annually. This expanded funding would enable the scaling of the Renewed Hope Estates programme to all 36 states, doubling housing targets from 250 to 500 units per state—a critical step toward national coverage.
In a strategic move that signals Nigeria’s intent to deepen international cooperation, the Ministry is finalizing a ground-breaking partnership with Shelter Afrique Development Bank (ShafDB)—a Pan-African housing finance institution in which Nigeria is the largest shareholder. The first phase of this collaboration will see an investment of N50 billion to deliver 5,000 housing units. This marks the first time the Nigerian Ministry of Housing and Urban Development will directly access financing from ShafDB—a milestone Minister Dangiwa called “another Renewed Hope First.”
Beyond attracting international finance, the Ministry is working to optimize the performance of its key housing agencies—particularly the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA). Under the Renewed Hope Agenda, FMBN has emerged as a vital engine for affordable housing. Between May 2023 and April 2025, the Bank disbursed N59.3 billion in housing loans, delivered 2,465 housing units, and created over 61,625 decent-paying construction jobs across the country. Notably, FMBN has supported 17,980 Nigerians with single-digit interest loans, including home renovation loans, rent-to-own schemes, and the innovative Cooperative Housing Development Loan and Individual Construction Loans.
The bank’s flagship intervention, however, remains the N100 billion Bankable Off-taker Guarantee for the Renewed Hope Cities—an unprecedented move that de-risks private investments and boosts developer confidence. In addition, FMBN recently launched a Rent Assistance Product, designed to ease the financial burden on renters by allowing them to pay rent in monthly instalments over a year, a critical innovation in a country where yearly rent demands often push citizens into financial distress. Meanwhile, the Federal Housing Authority has quietly but efficiently negotiated free land donations from 20 state governments, a gesture that drastically reduces development costs. In Phase One, the FHA is set to begin construction of 200 Renewed Hope Houses across 17 states, setting the stage for broader interventions in subsequent phases.
While the supply of housing remains central to the Renewed Hope Agenda, Minister Ahmed Dangiwa is clear-eyed about another foundational priority: improving Nigeria’s land administration system. The objective, he said, is to create a land governance framework that ensures clarity, security, and accessibility in land ownership and transactions. These are the bedrocks upon which investor confidence and long-term national development can rest. Yet even as policy reforms are underway, questions continue to swirl around the true affordability of government-delivered housing, especially for Nigeria’s low-earning citizens. Surveyor Ibikunle Ajao is one of those calling for a deeper interrogation of Nigeria’s housing economics. He takes issue with the popular narrative that sees housing units priced at N10 million per room as attainable. He pointed out that the real problem lies not just in price tags, but in the structural roots of housing inflation—including what he termed “dead capital,” the prohibitive cost of land and building materials and the absence of innovation in local construction technologies.
Why isn’t the government investing heavily in research to bring down construction costs?” He painted a stark picture: a university graduate earning N120,000 monthly—N1.44 million annually—who must pay for rent, transportation, food, and health care. “Tell me,” he asked rhetorically, “how many years would it take for such a person to save N10 million to buy a single room?”
An estate surveyor and Chairman of the Board of Trustees at the Society for Professional Valuation (SPV), Mr. Sola Enitan, agrees that the housing deficit cannot be solved by government alone. He advocates a multi-pronged approach—one that harmonizes policy reform, private sector engagement, and international financing. Also weighing in is Toye Eniola, Executive Secretary of the Association of Housing Corporations of Nigeria (AHCN). He took a more nuanced stance on the question of affordability, suggesting that N10 million for a one-room apartment cannot be universally classified as expensive or cheap without context. “Affordability depends on several indices—location, quality of finishing, building materials, and target buyers,” Eniola explained. “A one-bedroom apartment in Victoria Island, Lagos, cannot be priced the same as one in Ikorodu.”
However, when viewed through the lens of Nigeria’s working class—especially civil servants earning the N70,000 minimum wage—the numbers become sobering. Eniola concluded that for the lowest earners, the current housing price point is “simply unaffordable.”
While the Renewed Hope Housing Programme signals a bold step toward tackling Nigeria’s housing deficit, concerns persist over its delivery, affordability, and long-term impact. Developer Ezenwa Udoji described the programme as visionary, crediting it with the potential to generate jobs and revitalise local economies. He noted that the incorporation of public-private partnerships and infrastructure in housing estates is commendable. However, he warned that success hinges on greater transparency, accountability, and fairness. Udoji advocated for citizen engagement, real-time updates, and strict enforcement of quality standards to restore public trust and prevent corruption.
Expanding the conversation, Kunle Awolaja, President of the African Real Estate Society (AFRES), argued that bridging Nigeria’s 25 million housing deficit demands a multi-pronged approach. He called for policy reforms, sustainable building innovations, streamlined land processes, and expanded mortgage options, including micro-mortgages and rent-to-own schemes. Awolaja also stressed the importance of digitising land records, decentralising urban growth through satellite cities, and investing in local building materials. Both experts agree: while Renewed Hope lays a promising foundation, only a holistic, transparent and inclusive framework will ensure its success. For now, Nigerians are watching — hopeful, yet cautious.
