Nigeria struggles with a deepening housing crisis as supply consistently falls behind rising demand, making homes unaffordable for many citizens. Even after six decades of independence, a significant number of Nigerians inhabit substandard and risky dwellings.
By 2023, Nigeria’s housing shortage is expected to reach 28 million units, with the population swelling to approximately 223.8 million, the United Nations reports. Addressing this housing challenge will necessitate an investment of close to N21 trillion.
Current statistics indicate that the country delivers only two housing units for every 1,000 residents, a number far from the United Nations’ guideline of 10 units. Each year sees the construction of fewer than 100,000 housing units, and fewer than half the population owns their homes.
Despite the urgent need, the government hasn’t sufficiently championed the housing cause, allowing the private sector to lead — often with steeper prices. In prime locations, a studio apartment can cost as much as N43 million or carry a rent of nearly N1 million. This pricing structure puts housing out of reach for many, especially those earning the N30,000 minimum wage. Adding to the cost challenges are the rising prices of land and building materials, influenced by inflation and fluctuating foreign exchange rates.
The industry contends with numerous obstacles: unresolved land ownership, skyrocketing costs of materials, inadequate infrastructure, and an alarming record of 461 buildings collapsing over the last four decades. The system also suffers from insufficient housing financing, steep bank loan interest rates, and prolonged bureaucratic procedures.
While organizations like the National Housing Fund (NHF), Federal Mortgage Bank of Nigeria (FMBN), and Federal Housing Authority (FHA) have launched initiatives, they haven’t met the extensive housing needs.
According to a report by the Guardian, experts call for an updated, comprehensive housing strategy, claiming that current measures are both outdated and insufficient. They underscore the importance of governmental incentives, suggesting tax breaks to promote social housing.
Nathaniel Atebije, the president of the Nigerian Institute of Town Planners (NITP), argues that genuine housing solutions should encompass quality living conditions, integrating proper engineering and societal infrastructure.
Victor Onukwugha, the president of the Association of Housing Corporation of Nigeria (AHCN), believes that Nigeria can leverage housing as an economic recovery tool through innovative tactics and practical measures. He advocates for governmental support for local building materials, process streamlining, and an environment where housing agencies can thrive.
Experts further advise nurturing a landscape favorable to Real Estate Investment Trusts (REITs) to draw investors, revitalize the mortgage market, and stimulate growth.
As challenges loom, the focus remains on partnership, innovation, and cultivating sustainable, locally tailored solutions to solve Nigeria’s housing dilemma.
