Dons Eze
ONE-BED ROOM FLAT IN TINUBU’S RENEWED HOPE ESTATE NOW N22M
Nigerians will have to pay up to N22 million to acquire one-bedroom apartments under the Renewed Hope Estates Programme of President Bola Timubu.
This was disclosed by the Federal Minister of Housing and Urban Development, Musa Dangiwa during a presentation at the State House Gallery, Aso Villa.
The minister explained tthat government-funded one-bedroom apartments under the Renewed Hope Estates Programme cost N8 million to N9 million.
However, those developed through Public-Private Partnerships (Renewed Hope Cities) are priced at N22 million, according to the minister.
Dangiwa attributed the pricing differential to changes in funding systems, stating that Renewed Hope Estates is funded through budgetary provisions, including infrastructure subsidies and free land, which ensures affordability.
The minister said: “A one-bedroom apartment at the Renewed Hope City in Karsana, built under a PPP model, costs about N22 million, whereas a similar unit under the Renewed Hope Estates, funded through budgetary allocations, costs approximately N8–9 million.
“The difference lies in the cost of finance. Under the Renewed Hope City model, developers purchase the land, and secure financing at double-digit interest rates, while as government, we facilate a Bankable Offtaker Guarantee from the FMBN. In contrast, Renewed Hope Estates are funded with interest-free allocations from the budget. State governments provide free land, and infrastructure costs are subsidized and excluded from the housing unit prices,” he added.
The Housing Minister explained the rationale for utilising the PPP model, citing Nigeria’s housing shortfall, which will require 550,000 units per year for the next decade at an estimated cost of N5.5 trillion.
He stated that budgetary allocations alone are insufficient, making public-private partnerships a vital tool for scaling up housing delivery. Dangiwa emphasised that PPP-driven Renewed Hope Cities cater to high- and middle-income earners who can afford market-rate housing, whereas Renewed Hope Estates are designed for lower-income groups to ensure equitable access to housing.
