The Federal Housing Authority (FHA) plans to spend about N776.15 million on land acquisition and construction of houses. This is approximately 19.8% of its 2024 budget of N3.94 billion.
Also, the budget for acquiring land and constructing houses is about 91.1% of the agency’s capital expenditure (N851.56 million).
The remaining 8.9% will be spent on IT systems (N52.44 million) and office equipment/furniture (N22.96 million).
Despite its critical role in addressing housing needs across income groups, the FHA faces a budgetary challenge. A whopping 61.4% of its 2024 budget is earmarked for salary payments, amounting to N2.42 billion out of a total expenditure of N3.94 billion.
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 Naijaonpoint.
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.
Other top revenue sources are capital development levy (N900 million), consent fee (N620 million) and ground rent (N600 million).
