FG Reviews China Hyway's Proposal for 10,000 Homes

The Federal Government is reviewing China Hyway Group Limited's proposal to construct 10,000 housing units across Nigeria within 30 months using prefabricated technology.

NGN Market

Written by NGN Market

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FG Reviews China Hyway's Proposal for 10,000 Homes

The Federal Government has commenced a review of a proposal by China Hyway Group Limited to develop 10,000 housing units across Nigeria within 30 months. This development was disclosed by the Federal Ministry of Housing and Urban Development in a statement on Tuesday.

If approved, the project would utilize prefabricated construction technology under an Engineering, Procurement, Construction and Financing (EPC+F) model. This approach aims to deliver affordable housing across Nigeria’s six geopolitical zones.

Proposal Details and Review Committee

Following a presentation by China Hyway Group Limited, the Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, directed the constitution of a committee. This committee, comprising relevant directors in the ministry, will undertake a comprehensive review of the proposal and recommend the ministry’s next line of action.

The proposal was presented during a meeting between the minister and a delegation from the Chinese company, led by its Chief Engineer, Lewis Chima. Minister Darma stated that the ministry is ready and willing to provide land in Abuja, across the states, and in local government areas, subject to due process and statutory requirements.

He added that the proposal aligns with President Bola Tinubu’s Renewed Hope Housing Programme, which prioritizes expanding access to affordable, decent, and sustainable housing through strategic public-private partnerships. The ministry remains committed to creating an enabling environment for genuine investors by facilitating access to land and providing institutional support.

China Hyway's Approach to Housing Delivery

China Hyway Group’s Chief Engineer, Lewis Chima, highlighted Nigeria’s estimated 17 million-unit housing deficit and economic potential as key attractions for the company. The company plans to deploy advanced prefabricated construction technology under the EPC+F model, integrating project design, financing, construction, and delivery into a single framework.

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Chima explained that this approach would enable the delivery of 10,000 housing units within 30 months. It also aims to reduce construction costs, improve quality, shorten completion timelines, and enhance project risk management through international financing support.

The company is seeking a long-term partnership with the Federal Government to help reduce Nigeria’s housing deficit, create jobs, promote technology transfer, and support sustainable urban development. The ministry’s Permanent Secretary, Dr. Shuaib Belgore, assured the delegation of the ministry’s commitment to promoting strategic partnerships.

Addressing Nigeria's Housing Deficit

Nigeria faces one of the largest housing shortages in Africa, driven by rapid urbanization, population growth, rising construction costs, and limited access to affordable housing finance. To bridge this significant gap, approximately 550,000 housing units need to be built annually, requiring an estimated N5.5 trillion every year over the next 10 years, according to former Minister of Housing, Musa Dangiwa.

Given the scale of financing required, the Federal Government has adopted different delivery models under the Renewed Hope Housing Programme. These models combine fully government-funded projects with Public-Private Partnership (PPP) arrangements to mobilize private capital for large-scale housing delivery.

The funding model is reflected in the pricing of housing units; government-funded one-bedroom apartments under the Renewed Hope Estates Programme are priced between N8 million and N9 million. In contrast, similar one-bedroom units developed through PPP arrangements under the Renewed Hope Cities Programme are priced at about N22 million.

The Federal Government has continued to roll out housing initiatives, including recently handing over 116 completed housing units under the National Housing Programme to the Benue State Government. Earlier, rent-to-own housing units were handed over to beneficiaries in Abuja under the FMBN Rent-to-Own Scheme, with a pilot phase targeting about 3,000 housing units nationwide.

The Federal Government has also directed the Federal Mortgage Bank of Nigeria (FMBN) to collaborate with state governors on bankable projects under the Renewed Hope Housing Programme. The China Hyway proposal, if approved, would add another large-scale PPP housing initiative to these ongoing efforts, though it remains under review and has not yet received final approval for implementation.

Tags:FG

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