The Minister of Housing and Urban Development, Ahmed Dangiwa, has called for increased funding for seven critical housing sector programmes.
These projects, he said, include the Renewed Hope Cities and Estates Housing Programme, Slum Upgrading and Urban Renewal Programme, among others.
Dangiwa made the appeal during the budget defence session of the Senate Committee on Housing, held on Monday at the National Assembly Complex.
“I wish to request that the Distinguished Chairman and Members of this very important Committee use their good offices to increase the budgetary allocation in seven key areas.
“This is in view of the fact that these areas are very critical to the transformative policies and programmes of Mr President, aimed at putting the economy on the path of recovery and growth.
“It is pertinent to state here that in the 2024 fiscal year, the sum of N162.609 billion was allocated to our Ministry, which was considered inadequate.
“Yet, we have been given an envelope of N83.752 billion as the Ministry’s Capital Budget Ceiling for 2025, which is far below even the 2024 appropriation,” he said.
According to Dangiwa, the Renewed Hope Cities and Estates Housing Programme is designed to act as a catalyst for economic growth.
“The construction and development of these new areas will generate employment opportunities, stimulate local businesses, and attract investments.
“The 50,000 units planned under Phase I will create 1,250,000 direct and indirect construction jobs for architects, engineers, plumbers, iron benders, masons, and others.
“This is in addition to the value chain effect of purchasing and supplying building materials and other businesses.
“Currently, we have covered 12 states and would like to cover 18 states, with 250 units per site. The amount needed to achieve this is N108 billion, at N6 billion per state,” he said.
He added that the Slum Upgrading and Urban Renewal Programme also required increased budgetary allocation.
“Currently, there are ongoing programmes in four states within each geopolitical zone, including the FCT.
“This means four sites in four states of each geopolitical zone, along with four sites in the FCT, bringing the total to 100 sites. At least N100 billion is needed to achieve better results,” he said.
Dangiwa further highlighted the ministry’s significant liabilities, which stem from completed and duly certified projects that could not be paid for by the end of the budgetary year due to limited funds.
“There is a need to make adequate provision for liabilities to enable the Ministry to reduce its exposure.
“The Ministry has over N92 billion in liabilities but would need nothing less than N60 billion in the 2025 budget to mitigate this burden,” he said.
In his remarks, the chairman of the Senate Committee on Housing, Senator Aminu Tambuwal, assured the minister of the committee’s support in addressing the liabilities.
“We will support you by making sure that we work together to approach the Minister of Finance, the Budget Office, and even the Presidency.
“We will explore how best we can secure debt relief for the Ministry and for our contractors,” he said.