Nigeria’s Housing Strategy Draws Interest from 36 African Countries

The Federal Government has attracted interest from several African countries seeking to replicate Nigeria’s housing delivery approach, which combines private-sector investment, concessional financing and guaranteed prospective buyers to support the development of 100,000 homes without direct government financing of construction.

The Renewed Hope Housing Public-Private Partnership (PPP) model was presented by the Director-General and Chief Executive Officer of the Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Oseodion Ewalefoh, at the Second Forum for Public-Private Partnership Units in Africa in Addis Ababa, Ethiopia.

According to a statement issued on Monday by the Acting Head of Media and Publicity at the commission, Ifeanyi Nwoko, representatives from 36 African countries attended the forum, which examined how public-private partnerships could improve service delivery in housing, healthcare, education, sanitation and water.

Nigeria was among five countries selected to present projects at the forum’s project clinic. The other countries were Malawi, Kenya, Djibouti and Côte d’Ivoire.

The Nigerian delegation used the opportunity to explain how the Renewed Hope Housing programme seeks to attract private investment by reducing project risks and improving access to affordable financing.

Private Developers to Finance and Construct Homes

Speaking on behalf of the Nigerian delegation, Ewalefoh said the Renewed Hope Cities programme was designed to deliver 100,000 housing units across selected Nigerian cities through a joint venture concession arrangement with private-sector partners.

He explained that the model differed from conventional PPP structures because the private partner was responsible for providing the land, designing the project, financing the development and carrying out construction.

Under the arrangement, the Federal Government focuses on reducing investment risks and creating the conditions necessary for developers to deliver homes at affordable prices rather than directly paying for construction.

Ewalefoh said the structure was developed partly in response to the high cost of borrowing in Nigeria, where commercial lending rates exceed 23 per cent. Such rates make it difficult for developers to secure financing for large housing projects and can increase the cost of homes for prospective buyers.

The government has therefore introduced measures intended to make the projects more attractive to private investors while improving affordability for homebuyers.

Government Uses Financing Support to Reduce Project Costs

One of the key measures involves identifying middle-income federal civil servants as prospective buyers, also known as off-takers, for the housing units.

This arrangement is intended to provide developers with a more predictable market for completed homes and reduce the risk associated with uncertain demand.

The government also committed to providing access roads to the semi-urban locations where the projects are being developed.

In addition, it facilitated access to concessional financing through public institutions to reduce the cost of funding.

According to the ICRC, approximately $19m in single-digit interest-rate funding was unlocked through the Federal Mortgage Bank of Nigeria, while the Family Homes Fund provided a further $20m in concessional loans.

Homebuyers are also expected to benefit from lower mortgage rates supported by an approximately $112m MOFI Real Estate Investment Fund.

The government and the developer negotiated housing sale prices to improve affordability. A restriction limiting each buyer to one housing unit was also introduced to discourage speculative purchases and prevent individuals from acquiring multiple homes under the programme.

Ewalefoh said the combined measures had reduced the effective cost of the project by approximately 30 per cent.

He explained that about $39m in concessional financing was helping to unlock a project with an estimated construction cost of $125m in private-sector investment.

According to him, the arrangement demonstrates how government policies, access to land, financing support and demand facilitation can attract private capital into housing development without requiring the government to fund construction directly.

He said governments could expand housing supply by using their resources strategically to reduce risks for private investors and create conditions for projects to remain commercially viable.

African Countries Examine Nigeria’s Model

Nigeria’s presentation attracted considerable interest during the question-and-answer session, with delegates seeking details about how the financing and risk-sharing arrangements could be adapted to their own countries.

Particular attention was given to the use of guaranteed off-takers, which can provide developers with greater certainty about demand, and concessional financing, which can lower borrowing costs.

The discussions also examined how governments could use targeted financial support to encourage private-sector participation in social infrastructure while keeping services affordable.

Unlike roads, ports and power plants, which may generate revenue through tolls, charges or electricity sales, social infrastructure projects such as housing, healthcare and education often cannot recover their full costs from users without making services unaffordable.

This creates a need for financing arrangements that balance private-sector returns with public access, affordability and accountability.

The forum considered several approaches to addressing these challenges, including risk allocation, availability payments, viability gap funding, subnational PPP arrangements and contract management.

These mechanisms can help governments determine how project risks and costs should be shared between public authorities and private partners.

Forum Brings Together African PPP Institutions

The Second Forum for Public-Private Partnership Units in Africa was jointly organised by the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB) and the African Legal Support Facility (ALSF).

Held at Africa Hall at the UNECA headquarters in Addis Ababa, the two-day event brought together heads of PPP units, development finance institutions, private operators and transaction advisers.

The forum operated under the theme, “Making Social Sector PPPs Work: From Policy Ambition to Effective Service Delivery.”

Participants examined ways to use private investment to expand essential public services and improve the implementation of projects across the continent.

Nigeria’s participation in the project clinic provided an opportunity to share its experience with housing delivery, while also learning from the approaches adopted by other participating countries.

Delegates presented their projects, discussed implementation challenges and exchanged ideas on structuring transactions, distributing risks and improving project delivery.

The Nigerian delegation was also expected to draw lessons from the discussions to inform the country’s own pipeline of social infrastructure PPP projects.

The forum built on its inaugural edition in 2024, which brought together more than 30 African PPP units to discuss climate-resilient infrastructure.

The latest edition broadened the discussions to include social sectors, with emphasis on turning policy commitments into projects that improve access to essential services while maintaining affordability and fiscal sustainability.