The 2026 Federal Budget, presented and passed in late 2025/early 2026, includes a landmark ₦750 billion allocation for the expansion of the National Housing Programme — the most substantial single-year housing commitment in Nigeria’s history.
This funding targets 150,000 additional units with a strong emphasis on solar-ready, mid-market homes (primarily 2–3 bedroom flats and terraces priced ₦25M–₦65M), distributed across 15 high-deficit states. It builds directly on Phase 1 progress and follows the FMBN Renewed Hope mortgage rate cut to 9.25% fixed for the first five years (effective February 2026).
Funding Breakdown (Key Components)
- Direct federal capex & construction: ₦480 billion
- FMBN subsidized lending & guarantees: ₦180 billion
- State & private-sector matching/PPP contributions: ₦90 billion
- Total dedicated allocation: ₦750 billion
Targeted States & Unit Distribution (2026 Expansion)
The 150,000 units are prioritized for states with the highest housing deficits and urban pressure:
- Lagos – 40,000 units
- Ogun – 20,000 units
- FCT (Abuja) – 15,000 units
- Kano – 12,000 units
- Rivers – 10,000 units
- Enugu – 8,000 units
- Oyo – 7,000 units
- Kaduna – 6,000 units
- Anambra – 5,000 units
- Delta – 5,000 units
- Imo – 4,000 units
- Cross River – 4,000 units
- Ondo – 4,000 units
- Osun – 4,000 units
- Ekiti – 6,000 units (shared cluster)
Unit Specifications & Features
- Primary types: 2-bedroom flats (60%), 3-bedroom terraces/bungalows (35%), 1-bedroom studios (5%)
- Price range: ₦25M–₦45M (2-bed), ₦40M–₦65M (3-bed)
- Standard inclusions: Solar-hybrid power (3–8 kVA), rainwater harvesting, energy-efficient fittings, basic security & access roads
- Target buyers: Earners ₦200k–₦600k/month with 10–30% equity contribution
Expected Delivery Timeline
- Q2–Q3 2026: Site preparation, contractor mobilization, first foundations
- Q4 2026 – Q3 2027: 60,000–80,000 units completed (Lagos, Ogun, FCT priority)
- 2027–2028: Remaining 70,000+ units phased rollout
- Full expansion completion target: End-2028
Impact on Mid-Market Pricing & Market Dynamics (2026)
- Price moderation — Increased supply expected to temper mid-market price growth in Lagos/Ogun perimeter corridors (Ikorodu, Mowe–Ofada, Sangotedo) from 12–18% to 7–12% YoY
- Rental premium stability — Solar-ready units projected to maintain 15–24% rent premium (Estate Intel mid-Feb 2026 data)
- Investor opportunity — Early off-plan purchases in Phase 2 estates offer 15–25% appreciation + 12–18% yields
- Affordability boost — 9.25% rate + subsidies make units accessible to broader income groups
Final Thoughts
The ₦750 billion allocation for National Housing Programme expansion in 2026 represents the strongest federal push yet to scale affordable housing supply and ease mid-market pressures.
For buyers: monitor state-specific launches for subsidized access and solar-ready features. For investors: focus on mid-market in priority states for yield + appreciation potential.
Which state or unit type are you most interested in under the National Housing expansion? Share your view below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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