FG says 1-bedroom apartments under its Renewed Hope Estates cost about N9 million

• One-bedroom apartments under the Renewed Hope Estates cost between N8-N9 million, while units in the PPP-driven Renewed Hope Cities are priced at around N22 million
• The Renewed Hope Cities model aims to cater to middle- and high-income earners, while the government-funded estates are designed for lower-income groups
• The Housing Minister, Musa Dangiwa, called for increasing the annual housing budget from N50 billion to at least N500 billion, starting in 2025

The Federal Minister of Housing and Urban Development, Musa Dangiwa, has disclosed that government-backed one-bedroom apartments under the Renewed Hope Estates Programme are priced between N8 million and N9 million.

In comparison, one-bedroom units developed through Public-Private Partnerships (PPP) under the Renewed Hope Cities initiative cost around N22 million.

Dangiwa attributed the price gap to differences in funding structures, noting that Renewed Hope Estates are financed through government budget allocations with infrastructure subsidies and land provided free of charge, which enhances affordability.

On the other hand, the Renewed Hope Cities initiative, executed exclusively via PPP arrangements, involves private developers who secure high-interest loans and bear the costs of land acquisition and infrastructure, leading to higher unit prices.

Dangiwa made these remarks during a presentation at the State House Gallery, Aso Villa, on Sunday, November 17, 2024. The speech was later made available on the Ministry of Housing and Urban Development's official website.

Differences in pricing models explained

“A one-bedroom apartment at the Renewed Hope City in Karsana, developed under the PPP model, costs about N22 million, whereas a similar unit under the budget-funded Renewed Hope Estates is priced at approximately N8–9 million,” Dangiwa explained.

He further elaborated that the higher costs in Renewed Hope Cities stem from the financial obligations of private developers. Unlike the government-funded estates, developers in the PPP model must purchase land and obtain financing at double-digit interest rates. 

In contrast, the government facilitates a Bankable Offtaker Guarantee from the Federal Mortgage Bank of Nigeria (FMBN), while state governments contribute by providing land and subsidising infrastructure costs, which are not included in the unit prices of Renewed Hope Estates.

Addressing Nigeria’s housing deficit through PPPs

Dangiwa outlined the rationale for the PPP approach, pointing to Nigeria's severe housing shortage. For the next decade, the country needs approximately 550,000 housing units annually, requiring an estimated investment of N5.5 trillion annually. 

He emphasised that relying solely on budget allocations is insufficient, making the PPP model a vital strategy for scaling up housing development.

The minister highlighted that PPP-driven Renewed Hope Cities target middle- and high-income earners who can afford market-rate housing. Renewed Hope Estates aim to provide affordable options for lower-income groups, ensuring broader access to housing.

Calls for increased housing budget allocation

Dangiwa also stressed the need for a significant increase in the annual housing budget to tackle the nation’s vast housing deficit effectively. While acknowledging the importance of PPPs, he underscored the necessity of boosting government funding for the Renewed Hope Housing Programme.

“As a Ministry, we have actively advocated for a larger budget, and there is now a general consensus that the current N50 billion annual allocation for housing is grossly inadequate compared to the N5.5 trillion needed each year to bridge the housing gap,” he noted.

Dangiwa revealed that discussions with the National Assembly leadership have yielded positive outcomes, securing their backing for an increase in the annual housing budget to a minimum of N500 billion, beginning with the 2025 budget.

He emphasised that this enhanced funding would enable the expansion of the Renewed Hope Housing projects to the remaining 18 states and increase the number of units per state from the current 250 to at least 500, as initially planned.

Dangiwa reiterated that the proposed funding boost is crucial for the success of the Renewed Hope Housing Programme. The programme aims to meet the housing needs of all Nigerians, particularly those in underserved regions, while extending the initiative’s impact nationwide.

FG announces free caesarean section to combat maternal, neonatal mortality

Meanwhile, TheRadar earlier reported that the Federal Government announced free caesarean section (C-section) for women across Nigeria to combat maternal and neonatal mortality.

The Minister of Health and Social Welfare, Ali Pate, said the initiative aims to improve access to quality healthcare for mothers and newborns, particularly focusing on primary health services and community involvement.