Nigeria unlocks $125 million for housing via PPP model

The Nigerian federal government has utilized a Public-Private Partnership (PPP) model to unlock approximately $125 million in private investment for its Renewed Hope Housing project. This financing structure, which employs concessionary loans, mortgage support, and risk-sharing arrangements, has reportedly reduced the effective cost of the project by about 30 percent.

Presented by Dr. Jobson Ewalefoh, Director General of the Infrastructure Concession Regulatory Commission (ICRC), at a continental forum in Addis Ababa, Ethiopia, the model aims to deliver 100,000 housing units across selected Nigerian cities. Unlike conventional PPPs, the government does not directly finance construction; instead, it focuses on de-risking the project by providing targeted financial incentives, guaranteed demand, and supporting infrastructure to attract private capital.

The initiative seeks to overcome high capital costs and commercial lending rates exceeding 23 percent, which have historically hindered housing development. The model has drawn interest from delegates representing 36 African countries attending the forum, which was organized by the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB), and the African Legal Support Facility (ALSF).