The Federal Government has raised the 2026 budget allocation for the Federal Ministry of Housing and Urban Development by seven per cent, from N98.13 billion in 2025 to N105 billion, according to details in the 2026 Appropriation Bill.
The funds are earmarked for housing delivery, urban renewal, renewable energy projects, and federal infrastructure across the country. Key allocations include N8.05 billion for 20,000 units under the Renewed Hope Agenda Housing Scheme, N3.74 billion for ongoing National Housing Programme projects, and N2.1 billion for prototype housing in Suleja, Niger State, and Ikorodu, Lagos State. Federal infrastructure projects received N840 million, while road construction and rehabilitation attracted over N2.3 billion across several states. Renewable energy initiatives, including solar street lighting, received N700 million for Kaduna and N140 million for Sokoto, with further allocations for 14 other states.
Despite the increase, experts argue the allocation is inadequate to address Nigeria’s persistent housing deficit. Festus Adebayo, Executive Director of the Housing Development Advocacy Network, said the government must show political will by substantially funding social housing to ease rising rent costs and overcrowding in urban areas. He noted that rent now consumes over 50 per cent of household income, forcing workers to live far from cities.
An official from the ministry added that, while discussions for a N500 billion annual budget for housing were held, the ministry continues to receive far less, covering overheads and urban regeneration projects in addition to housing delivery. With a national budget exceeding N40 trillion, the housing allocation represents only 0.2–0.3 per cent of the total, highlighting the scale of Nigeria’s housing challenges.
Stakeholders continue to urge the government to declare a housing emergency and implement bold measures to make affordable housing accessible for Nigerians.
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