Renewed Hope Cities’ 2000 More Homes Begin Journey to 1m Units
The Nigerian federal government’s Renewed Hope Cities and Estates initiative, aimed at providing affordable housing, has launched the construction of 2,000 housing units in eight states: Ebonyi, Abia, Akwa Ibom, Delta, Osun, Oyo, Benue, and Nasarawa. This development is part of a broader plan to address Nigeria’s significant housing deficit by delivering one million housing units nationwide.
Key Details of the Initiative:
- States Involved: Each of the eight states will receive 250 housing units.
- Types of Housing Units: The 250 units in each state will comprise:
- 50 one-bedroom semi-detached bungalows.
- 100 two-bedroom semi-detached bungalows.
- 50 three-bedroom semi-detached bungalows.
Employment Opportunities:
- Workforce Impact: The construction of these units is expected to employ around 50,000 skilled and unskilled workers, averaging 25 workers per unit.
Current and Future Plans:
- Ministerial Oversight: Ahmed Dangiwa, the Minister of Housing and Urban Development, will oversee the construction, which is set to begin in late June to early July.
- Previous Projects: This launch follows the construction of 1,500 units in five northern states: Katsina, Yobe, Gombe, Sokoto, and Kano.
- Overall Targets: The initiative aims to complete 6,612 housing units by the end of 2024. This includes 3,112 units in Abuja and the additional 2,000 units currently being launched.
Funding and Financing:
- Current Funding: The initial projects, including the additional 2,000 units, are financed by the 2023 supplementary budget of the Ministry of Housing and Urban Development.
- Future Funding: Subsequent phases will be financed through the ministry’s 2024 budget.
Inclusivity and Integration:
- Affordability: The program seeks to promote inclusivity by offering a range of affordable homeownership options, including:
- Single-digit interest rate mortgage loans with up to 30-year terms from the Federal Mortgage Bank of Nigeria (FMBN).
- Rent-to-own options, allowing beneficiaries to pay in monthly, quarterly, or annual instalments.
- Outright purchase options for high-income earners.
- Cross-Subsidy Initiative: 80 percent of the housing units will be sold at commercial rates, while 20 percent will be offered at concessional rates to low- and medium-income Nigerians, particularly those affiliated with the Nigeria Labour Congress and the Trade Union Congress.
Long-Term Vision:
- Phase Execution: The first phase began with the launch of 3,112 housing units in Abuja’s Karsana District. The project will be executed in batches to eventually cover all 36 states and the Federal Capital Territory, aiming to deliver 1,000 units per state and 4,000 units in the FCT.
The Renewed Hope Cities and Estates initiative represents a significant effort to mitigate Nigeria’s housing crisis, providing affordable and inclusive housing solutions while boosting employment and promoting economic development.
