FG to Prioritize Completion of Ongoing Projects Over New Contracts
The Federal Government has officially shifted its 2026 housing strategy toward a "Completion-First" model, pledging to prioritize the funding and delivery of all ongoing projects before initiating new large-scale contracts.
The Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, disclosed this directive during a strategic review of the 2026 Appropriation Bill. The move is aimed at eliminating the culture of abandoned projects and ensuring that the thousands of units under the Renewed Hope Cities and Estates program are handed over to off-takers within the 2026 fiscal year.
The 70% Capital Rollover Directive
Central to this pledge is a new fiscal policy mandated by the Presidency. For 2026, 70% of the Ministry’s capital allocation (from the approved ₦105.9 billion budget) is strictly earmarked for the completion of existing liabilities and projects that have reached at least 40% physical completion.
"We are entering a season of consolidation," Dangiwa stated. "Our priority for 2026 is to turn construction sites into homes. We will not spread our resources too thin by starting new projects in areas where previous ones remain unfinished."
Key Deliverables for 2026:
Project Close-out by March 31: Contractors with outstanding 2024 and 2025 liabilities have been given a deadline of the first quarter of 2026 to hit major milestones to qualify for further funding.
Renewed Hope Estates: Focus will remain on completing the 50,000 units currently at various stages across the six geopolitical zones.
Infrastructure Integration: A portion of the prioritized funds will be diverted to "off-site infrastructure"—roads, water, and electricity—to ensure that completed buildings are actually habitable.
Impact on the Nigeria Housing Market
For stakeholders in the real estate sector, this policy shift provides a clearer roadmap for 2026:
For Contractors: The FG is moving away from the "Advance Payment" model for new projects, favoring those who can demonstrate rapid completion of current assignments.
For Homebuyers: This is a positive signal. The focus on completion means that the wait time for National Housing Fund (NHF) subscribers to move into their homes will likely shorten in the second half of 2026.
For Investors: Value is expected to rise in the peri-urban areas where these estates are located, as the "abandoned project" risk—which usually depresses local land prices—is being actively mitigated by the Ministry.
The "Dangiwa Reform" Context
The 2026 pledge is part of a broader reform to institutionalize a National Land Commission and a Housing Agency Reform. By clearing the backlog of ongoing projects, the Ministry hopes to create a "clean slate" for a massive private-sector-led expansion projected for 2027.
