Housing Deficit: Stakeholders Decry "Inadequate" N105bn Allocation in 2026 Budget

Despite a marginal seven percent increase in the budgetary allocation for the Federal Ministry of Housing and Urban Development, industry stakeholders warn that the N105bn earmarked in the 2026 Appropriation Bill is "grossly inadequate" to address the nation's widening housing deficit.

The 2026 allocation rose from N98.13bn in 2025, but experts argue the increment does not reflect the economic realities of soaring building material costs and high inflation.

Budget Breakdown: Where the Money Goes According to official budget documents, the N105bn is intended to fund a variety of initiatives, including:

• Renewed Hope Housing Scheme: N8.05bn for 20,000 housing units.

• National Housing Programme (NHP): N3.74bn for ongoing projects.

• Prototype Developments: N2.1bn for projects in Suleja (Niger State) and Ikorodu (Lagos State).

• Urban Renewal: Funds for slum upgrading, secretariat projects in 11 states, and solar street lighting across multiple states.

Experts React: "Just a Drop in the Ocean" The Executive Director of the Housing Development Advocacy Network (HDAN), Festus Adebayo, criticized the budget, noting that past allocations were poorly funded.

"The evidence before us confirmed that the [2025] budget was not even funded up to 50 percent," Adebayo stated. "The government should show more seriousness by allocating more to social housing. Leaving it entirely to the private sector makes it impossible for those who really need houses to own them."

Adebayo further highlighted that with double-digit interest rates exceeding 30% and skyrocketing rent consuming over 50% of household incomes, the government must declare an "emergency" in the housing sector.

Short of the N500bn Target Inside sources within the Ministry revealed that while there were high-level discussions between the Ministry and National Assembly committees to push for an annual budget of N500bn, the final figure remains a fraction of that goal.

"The budget for housing is not even up to one percent of the total N40tn national budget; it is approximately 0.2% to 0.3%," an anonymous official noted. "This does not show the political will required to actually build houses for Nigerians."

Impact on Low-Income Earners With Nigeria needing an estimated N20tn to offset its housing deficit, the current budgetary trajectory remains a concern for the real estate market. High production costs and expensive land access continue to drive residents to the outskirts of major cities, increasing transportation costs and lowering the quality of life for urban workers.

As the 2026 fiscal year approaches, stakeholders are calling for a shift in government attitude, urging more robust funding and a move beyond "paper-based" promises to actual site delivery.