FG to Spend N250bn on Student Hostels Nationwide to Tackle Accommodation Deficit

Funmi Ogundare 

The Minister of Education, Dr. Maruf Olatunji Alausa, yesterday, disclosed that the federal government will spend about N250 billion in 2026 to construct student hostels across tertiary institutions nationwide as part of efforts to improve welfare and expand access to education.

Alausa, who spoke to journalists at the groundbreaking ceremony for 1,500-bed hostel development project of Lagos State University ( LASU), Ojo,  the intervention would deliver thousands of new bed spaces through a mix of direct funding and public-private partnerships (PPP).

Breaking down the planned expenditure, the minister explained that about N100 billion would be used to build 500-bed hostels in roughly 50 universities at a cost of N2 billion each, while another component would fund 24 PPP hostel projects providing between 1,200 and 1,500 bed spaces per institution.

Under the PPP model, he said the government, through the Tertiary Education Trust Fund (TETfund), would contribute N1 billion, while private investors would provide about N3 billion per project, amounting to nearly N96 billion for that segment.

In addition, Alausa noted that about N1 billion would be allocated to smaller hostel projects delivering at least 300 bed spaces in another 24 institutions.

“In total, we are committing about N250 billion in 2026 alone to deliver world-class student accommodation across federal and state tertiary institutions,” he said, adding that construction timelines range from less than 12 months for smaller hostels to about 24 months for larger PPP projects.

Alausa said the initiative reflects the administration’s priority on youth welfare and education, stressing that inadequate accommodation remains a major challenge across Nigerian universities.

He added that the government’s student loan scheme would also cover accommodation costs, ensuring that indigent students are not denied access to higher education.

According to him, over N200 billion has already been disbursed to institutions for fees, while about N50 billion has been provided as direct support to students under the scheme.

Alausa further linked the intervention to broader reforms under President Bola Ahmed Tinubu, whom he credited with prioritising education and youth development through increased funding and policy support.

Responding to concerns about human capital development, the minister said the government is also investing in lecturers’ welfare and research capacity. He noted that improved remuneration, interest-free loans for academic and non-academic staff, and expanded research funding are being implemented to strengthen the system.

He revealed that the Federal Executive Council ( FEC) had approved a new National Research Development Fund aimed at mobilising over $500 million annually for research and innovation in the education sector.

While acknowledging the need for continued improvement, Alausa urged Nigerians to adopt a more balanced view of developments in the country, encouraging constructive criticism while recognising ongoing reforms.

He maintained that the combination of infrastructure expansion, student support schemes and investment in research would position Nigeria’s education system for sustainable growth and global competitiveness.

Earlier in her remarks, the Vice-Chancellor of the university, Prof. Ibiyemi Olatunji-Bello, described the project as a major milestone in the institutions’s growth, noting that it would provide a safe, modern and conducive living environment to support both academic and personal development of students.

She explained that the hostel development forms part of broader efforts to strengthen infrastructure and enhance the overall learning experience at the university.

The VC commended TETfund for its sustained support, highlighting several landmark projects executed through its interventions. 

The new hostel project, she noted, represents another significant step in the institution’s expansion drive and reflects its commitment to student welfare.

Olatunji-Bello also expressed appreciation to the Minister of Education for his continued support to the university and the Nigerian education sector, noting that such backing inspires confidence and progress.

She further described the project as a product of collaboration under a public-private partnership involving LASU, TETFund and private sector partners, particularly Integrated Projects for Self Development, which she said would deliver high-quality infrastructure.

“This initiative is not just about construction; it is about laying the foundation for a more inclusive and supportive learning environment,” she said, adding that the partnership model could serve as a template for other institutions across the country.

The VC urged contractors and stakeholders to ensure timely completion of the project, stressing that expectations are high and must be met with quality delivery.

She reaffirmed the university’s commitment to prioritising students’ needs, noting that access to comfortable accommodation is critical to academic success and overall well-being.

In the same development, Yaba College of Technology also did a similar groundbreaking ceremony for 1,500-bed hostel development, in a move aimed at addressing the persistent shortage of accommodation in the institution.

In his remarks, the Rector, Dr. Ibraheem  Abdul, said the project was being delivered through an innovative Public-Private Partnership model facilitated by the Tertiary Education Trust Fund in collaboration with Integrated Projects Limited.

He noted that the hostel development represents a major milestone in efforts to improve student welfare and create a conducive learning environment, describing it as a direct response to the longstanding challenge of inadequate accommodation within the college.

He commended Dr. Maruf Tunji Alausa, for his commitment to transforming the education sector, particularly through infrastructure development under the administration of President Bola Ahmed Tinubu.

According to him, the project goes beyond physical structures, symbolising a renewed focus on expanding access to quality technical and vocational education in Nigeria.

“This project is not just about bricks and mortar, but about creating an enabling environment where our students can thrive academically and socially,” the rector said.