The Federal Ministry of Housing and Urban Development in Nigeria has announced a budget allocation totalling N1.433 billion for allowances and social contributions in 2026. The breakdown includes N876.6 million specifically for allowances and N556.8 million for social spending. This budget reflects a 7% increase in the ministry's overall allocation, which has risen from N98.13 billion in the previous year to N105 billion for 2026, highlighting the government’s focus on improving housing and urban development services in the country.

The allocated funds are aimed at supporting various initiatives under the government’s housing policies, including the Renewed Hope Agenda Housing Scheme, which is set to receive N8.05 billion for the construction of 20,000 housing units. Additional allocations will support ongoing projects under the National Housing Programme, which have been earmarked for N3.74 billion. Another N2.1 billion is directed towards prototype housing developments in places like Suleja, Niger State and Ikorodu, Lagos State. This strategic allocation signifies the government’s commitment to addressing the housing deficit and enhancing urban infrastructure across Nigeria.

By enhancing its funding towards social contributions and housing projects, the ministry aims to create a more organized urban environment that meets the growing needs of the population. The increase in budget shows a recognition of the importance of investing in sustainable communities and infrastructure needed for economic growth and social development. As these projects roll out, they could potentially alleviate housing shortages while also stimulating economic activity through job creation in the construction sector.