NAIRAMETRICS
The Federal Minister of Housing and Urban Development, Musa Dangiwa, has revealed that 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.
Dangiwa attributed the price disparity to differences in funding mechanisms, noting that Renewed Hope Estates are funded through budgetary provisions with subsidies for infrastructure and free land, ensuring affordability.
In contrast, Renewed Hope Cities, exclusive to the PPP model, rely on private developers who finance projects through high-interest loans and bear land acquisition and infrastructure costs, driving up prices.
The Housing Minister made this disclosure during a presentation at the State House Gallery, Aso Villa, on Sunday, 17th November 2024, with the speech later shared on the official website of the ministry.
“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,” Dangiwa stated.
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