HDAN instructs the National Assembly to intervene in the budget allocation for housing

The Housing Development Advocacy Network (HDAN) has called on the National Assembly to urgently intervene and ensure an increase in the allocation for housing and urban development in the 2025 budget while the proposal is still under review.

The group made this call through its Executive Director, Mr. Festus Adebayo, while condemning the Federal Government’s allocation of N88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget.

Appealing to lawmakers, Adebayo said a critical adjustment before the final approval of the budget to President Bola Tinubu would demonstrate strong legislative commitment to addressing Nigeria’s serious housing deficit.

He suggested a substantial budget increase to N500 billion and above, citing that an average cost of N6 to 10 million per housing unit is required to meet the presidential target.

“Unlike other sectors, the budget provision for housing can be recovered when houses are sold. The money returns to the government after creating jobs and boosting economic development. Even if the homes are subsidized, at least 70 percent of the expenses can be recovered,” Adebayo said.

He contrasted the economic return potential of the housing sector with that of other ministries such as Public Works, Education and Transportation, where allocations are often sunk costs with no direct financial recovery.

Adebayo urged President Bola Tinubu to show greater commitment to the housing sector by addressing budget misallocation.

He stressed the need for government intervention in the development of local construction materials and stabilization of exchange rates to curb rising construction costs.

However, it recommended alternative approaches, including rental housing schemes with ownership options, partially completed housing units to reduce upfront costs, and site and service schemes that provide infrastructure, allowing citizens to build at their own pace.

He also highlighted the importance of involving professionals in policy implementation and maintenance of public buildings to ensure sustainability.

Adebayo urged policymakers to prioritize the housing sector in the 2025 budget, calling for deliberate and systematic planning to reduce the housing deficit.

“If we plan to build 20,000 units this year, we should try to double that number next year. “A deliberate and systematic approach is needed to consistently reduce the housing deficit,” he said.

He also called for better oversight to ensure that the allocated funds are used effectively and the promised housing units are delivered within the specified time frame.

READ ALSO: Budget 2025: HDAN condemns allocation of N88 billion for housing