The Federal Housing Authority (FHA) intends to purchase land and build homes for around N776.15 million. This amounts to about 19.8% of its N3.94 billion budget for 2024.
Additionally, the funding for building homes and purchasing land accounts for almost 91.1% of the agency’s capital expenditures (N851.56 million).
The remaining 8.9% will go toward office supplies and furnishings (N22.96 million) and IT systems (N52.44 million).
The FHA has financial difficulties, despite playing a vital role in meeting housing requirements for people of all economic levels. Salaries would account for a staggering 61.4% of its 2024 budget, or N2.42 billion of N3.94 billion in total spending.
Read Also: 2024 Budget: NASS Slashes 45% Of Minimum Wage Allocation
This hefty salary bill raises questions about the allocation of resources towards its core mandate of housing development.
In 2016, the agency disclosed plans to establish a revenue task force to raise funds for its budget.
The agency plans to generate about N4.5 million in revenue from rents by kiosks and shopping centre owners in 2024. This target is part of the 2024 Government-Owned Entities’ (GOEs) budget proposal, recently made public by the Budget Office of the Federation and seen by Nairametrics.
The primary revenue driver for FHA in 2024 is projected to be income sales from estates, estimated to be N4.13 billion. This figure represents a significant 51.5% of its revenue goal of N8.02 billion for the year.
Read Also: N2.24tr Budget: Lagos State To Spend N1.22tr On Capital Expenditure, Targets N1.847tr In Revenue
Other top revenue sources are capital development levy (N900 million), consent fee (N620 million) and ground rent (N600 million).
Established under the National Development Plan in 1973, the FHA has a longstanding commitment to driving the government’s housing agenda.
In December 1992, a pivotal shift occurred for the Federal Housing Authority (FHA). A performance agreement involving the Authority, the Federal Government, and the Technical Committee on Privatization and Commercialization (TCPC), now known as the Bureau of Public Enterprise (BPE), redefined FHA’s role. This agreement transformed FHA into a unique entity, functioning both as a government agency focused on housing delivery and a profit-earning commercial enterprise, thereby sustaining its operations.
The TCPC outlined a clear mission for FHA: to develop affordable housing by effectively using available resources in line with the National Housing Policy. The goal was to enhance the living standards and quality of life for Nigerians, especially those in the low-income bracket, through the commercial and profitable execution of government-funded housing programs.
Read Also: 2024 Budget: Nigeria Targets N298.4b From Sales Of National Assets
Given Nigeria’s acute housing deficit of 28 million homes and the need for an estimated N21 trillion to address this shortage, the FHA’s commitment to meeting these immense housing requirements is more critical than ever.
Over the years, it has delivered thousands of housing units nationwide, overcoming numerous challenges. Notable projects include the Jubilee Estate, a partnership with Nugga Best Regis International, marking FHA’s 50th anniversary with about 7000 new housing units.
Also, the FHA plans to construct an additional 20,000 housing units across Nigeria’s six geo-political zones. This plan aligns with ongoing projects like the Zuba Housing Estate and the Smart City/Diaspora Estate in Abuja.
However, a concerning aspect is the deteriorating condition of older FHA estates, many of which are increasingly turning into slums due to poor maintenance
