Nigeria attracts $125 million for housing with new PPP model
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The federal government of Nigeria secured $125 million in private investment for affordable housing by using a Public-Private Partnership (PPP) model that lowers project costs.
The Infrastructure Concession Regulatory Commission (ICRC) arranged concessionary loans, mortgage support, and risk-sharing to attract investment for the Renewed Hope Housing project. This initiative aims to deliver 100,000 housing units across Nigeria without the government directly funding construction.
The financing structure was presented at a PPP forum in Addis Ababa, Ethiopia, organised by UNECA, the African Development Bank, and the African Legal Support Facility, with delegates from 36 African countries attending. Unlike typical PPPs, the private sector handles land, design, financing, and construction, while the government focuses on reducing investor risk.
The government committed to identifying civil servants to purchase the homes, building access roads, and providing funding through institutions like the Federal Mortgage Bank of Nigeria, the Family Homes Fund, and the MOFI Real Estate Investment Fund. These combined efforts lowered project costs by approximately 30 percent, and Nigeria shared this model with other African nations seeking to fund social infrastructure without straining public finances.
