The Nation Newspaper

Tag: Housing

  • Fed Govt reviewing housing project pricing

    Fed Govt reviewing housing project pricing

    The Federal Government has reaffirmed its commitment to addressing Nigeria’s housing deficit, with assurances that the pricing of government-owned housing projects will be reviewed to ensure affordability for average Nigerians.

    The Minister of State for Housing and Urban Development, Yusuf Abdullahi Ata, gave the assurance during an official assessment visit to the National Housing Project (NHP) Estate in Laminga, Jos East Local Government Area of Plateau State.

    Ata said affordable housing remains a core priority under President Bola Tinubu’s Renewed Hope agenda, stressing that the administration is focused on expanding housing supply while preventing cost barriers that could exclude intended beneficiaries.

    According to the minister, the Ministry of Housing and Urban Development is intensifying efforts to increase the volume of available housing units nationwide, while ensuring that pricing structures reflect economic realities and promote inclusivity.

    During the visit, officials of the Jos East Local Government Area expressed interest in acquiring housing units within the Laminga estate through a bulk purchase arrangement. However, the local authorities requested a downward review of the initial prices, citing visible dilapidation in some buildings and the anticipated cost of maintenance and repairs.

    Responding to the request, Ata assured that the ministry would reassess the estate’s valuation to reflect its current condition.

    Read Also: Firm, Kwara govt to provide affordable housing

    “The ministry will offer the houses to the local government based on current face value, taking into consideration some observed dilapidation,” the minister said. “We will review the initial pricing and address it accordingly to ensure these units are put to use for the benefit of the people.”

    The NHP Estate in Laminga is expected to play a significant role in stimulating socio-economic growth in Jos East and surrounding communities. Beyond providing shelter, the occupation of the estate is projected to create economic opportunities, improve living standards, and reduce infrastructure decay caused by prolonged vacancy.

    The Federal Controller of Housing in Plateau State, Emmanuel Attah, who accompanied the minister on the inspection, confirmed that the local government was eager to take over the housing units. He noted that doing so would help reduce maintenance costs and prevent further deterioration of the buildings.

    The assessment visit highlights the Federal Government’s proactive approach to managing the National Housing Programme and ensuring that completed projects are not left idle.

    By addressing pricing concerns and encouraging bulk acquisition by local governments, the ministry aims to accelerate the deployment of affordable housing units across the country while strengthening collaboration between federal and local authorities.

    The minister concluded the visit by reaffirming the administration’s resolve to deliver sustainable housing solutions that support social stability, economic development, and improved quality of life for Nigerians.

  • New residential development launched in Lagos to address housing demand

    New residential development launched in Lagos to address housing demand

    A new residential development, Fab Luxury Court, has been officially launched in Maryland, Ikeja, Lagos, with construction commencing following a groundbreaking ceremony.

    The project will feature one-bedroom, two-bedroom, and three-bedroom apartments, according to the developers.

    The launch drew key stakeholders from the real estate sector, including developers, investors, and representatives of partner organisations.

    Among the attendees were Tony Aspire, Chairman of REDAN Lagos; Adeyemi Adeniyi, Chairman of REDAN Ogun State; Jeffrey Itepu and Damilare Oshokoya, CEO and COO of Abode; Elujoba Daniel, MD/CEO of Assuredway Investment Ltd; Olanipekun John and Awodire Victor, Directors of Trustworth Homes and Properties Ltd; Adeola Ugwuoke, CEO of Deo Equitable Homes; and other industry figures. Some guests were represented by delegates, including Daskabi Siyasoya.

    The project comes amid Nigeria’s growing housing deficit, particularly in urban centres such as Lagos, where rapid population growth, urban migration, and rising construction costs have left demand for well-finished residential apartments on the mainland outpacing supply.

    Speaking at the event, CEO of FAB Realty, Ayomikun Adebayo-Oyetoro, said the decision to site the project in Maryland was informed by client inquiries and demand for residential apartments on the Lagos mainland.

    She noted that while high-end developments are largely concentrated on Lagos Island, mainland locations remain underserved despite rising demand, leaving prospective homeowners with limited options.

    “We realised that a lot of our clients are constantly asking for good apartments on the mainland. Most times, when they find apartments on the mainland, the quality is not the same as what they see on the Island. That gap is what informed this project.

    “The idea was not to abandon the mainland or keep concentrating developments on the Island alone. We want to respond to what our clients are asking for by providing apartments that meet modern standards, but are located on the mainland,” Adebayo-Oyetoro said.

    She also highlighted Maryland’s strategic location, citing its accessibility to key parts of Lagos and beyond.

    “Maryland is about ten minutes to the airport, about fifteen to twenty minutes to Ikoyi, and it gives easy access to routes leading out of Lagos, including Ibadan. Location was a major factor in choosing this site,” she said.

    Industry observers noted that Adebayo-Oyetoro’s role in driving the project reflects the growing participation of women in Nigeria’s real estate sector, a space traditionally dominated by men. In recent years, more women-led firms have emerged, championing residential developments aimed at addressing housing gaps and expanding access to quality homes.

    Adebayo-Oyetoro said the project was conceived to respond to housing demand while contributing to urban development in Ikeja and its surrounding areas.

    “What we are trying to do is respond to demand by adding quality housing stock to the mainland. It is about meeting the needs of people who want comfortable and well-finished apartments without necessarily having to move to the Island,” she said.

    Fab Luxury Court is expected to add to the supply of apartment housing in the area as construction progresses.

  • Ministry commits to PPP for housing delivery

    Ministry commits to PPP for housing delivery

    Permanent Secretary, Federal Ministry of Housing and Urban Development, Dr. Shuaib Belgore has restated the commitment of the housing ministry to driving policy harmonisation and deepening the Public – Private collaboration as strategies to accelerating housing delivery and sustainable urban development in Nigeria.

    Dr. Belgore, stated this at the ongoing 14th Meeting of the National Council on Lands, Housing and Urban Development (NCLHUD) in Ilorin, Kwara State.

    He noted that effective coordination across all tiers of government, supported by the private sector, remains critical to addressing the nation’s housing deficit.

    “Achieving sustainable housing delivery and functional cities begins with sound policy formulation, rigorous sectoral reviews, and the implementation of actionable strategies,” Belgore said.

    He explained that the Council serves as the highest statutory policy advisory platform in the sector, bringing together key stakeholders to align national and sub-national actions around shared priorities for housing and urban development.

    Read Also: FG, Legion plan affordable housing scheme for military veterans

    According to him, growing pressure on public resources has made Public–Private Partnerships (PPPs) indispensable, stressing that “harmonised land administration systems, planning standards, financing frameworks, and delivery models are essential to creating a predictable, investor-friendly environment that accelerates housing supply.”

    Dr. Belgore identified persistent challenges, including limited access to land, high construction costs, weak land documentation, inadequate mortgage financing, and skills gaps, adding that the demerger of the Ministry from Works was a deliberate step to reposition the housing sector for greater impact.

    He assured stakeholders of the Ministry’s continued policy leadership and institutional coordination, urging them to “translate harmonised policies into measurable outcomes that improve access to affordable housing for Nigerians.”

    Commending the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, for ongoing sectoral reforms, the Permanent Secretary highlighted land governance digitisation, urban renewal, promotion of local building materials, and deepened PPPs as key drivers of sustainable housing delivery.

    He also disclosed the Ministry’s intervention in establishing local building materials manufacturing hubs aimed at reducing construction costs and creating jobs, calling on stakeholders to engage constructively on memoranda before the Council to ensure actionable and coordinated outcomes nationwide.

    In his remarks, the Commissioner of Housing and urban development, Kwara State, Dr. Segun Ogunsola, noted that the Kwara State is not lagging behind with regards to urban development in face of global best practices in housing and urban development.

    He argued that the 14th National Housing Council is coming at a time when managing urban sprawl amidst population growth is fast becoming a major challenge.

    Ogunsola assured stakeholders that the Kwara State Government will work with the Federal Government via the Federal Housing Ministry to bridge the gap in housing deficit, and management of urbanisation across the state.

  • Renewing housing hope

    Renewing housing hope

    The real estate sector showed resilience amidst high inflation and interest rates, driven by strong urbanisation, population growth and a significant housing deficit, leading to price increases and affordability challenges. Smart city focus, increased infrastructure and a rise in real estate’s gross domestic product (GDP) contribution, with projections pointing to continued growth, especially in residential markets, despite economic headwinds, shaped the industry in the year under review, OKWY IROEGBU-CHIKEZIE writes.

    There may be conflicting figures regarding Nigeria’s housing deficit; but several real estate experts estimate the gap at 28 million units, stating that the nation needs 700,000 new homes annually.

    Still smarting from the joy of the real estate sector displacing oil and gas to emerge as Nigeria’s third largest sector, Gross Domestic Product (GDP) and Consumer Price Index (CPI) rebasing, the sector has continued to thrive, with an estimated value now at $2.61 trillion.

    In 2024, for instance, in nominal terms, real estate services grew by 46.52 percent in the Q3 of 2024, higher by 43.70 percent points than the growth rate reported for the same period in 2023 and lower when compared to the preceding quarter. On a quarter-on-quarter, the sector growth rate was 16.15 percent. It contributed 5.43 percent to real GDP in Q3 of 2024, lower than the 5.58 percent recorded in the corresponding quarter of 2023.

    This was why for discerning investors, the real estate presented the most veritable avenue for investment in 2025.  Rapid urbanisation in Lagos, Abuja, and Port Harcourt, coupled with a huge affordable housing demand from Nigeria’s growing population over 220 million; growing popularity of short-let rentals and a shift towards sustainable, solar-powered communities, with investors looking beyond major hubs to emerging corridors like border towns of big cities of Lagos like Akute (Ogun State), Ibadan (Oyo state) for better returns fueled the market.

    Besides, diaspora remittances in the sector, amounting to $5.2 billion in Q4 2025- a 10 per cent increase from Q3, stimulated driving investments in a real estate market valued at $2.61 trillion.  With 61.6 per cent demand in Lagos and 46.2 per cent for rentals, these funds were channeled into luxury apartments and commercial spaces.

    The sector showed resilience amidst high costs, driven by a huge housing deficit, rapid urbanisation, diaspora investment, and government focus on infrastructure, leading to strong rental demand, rising property values (especially in secondary cities like Ibadan, Epe, Ogun State), and increased acquisition volumes, despite persistent inflation and high borrowing costs. The market saw a mix of boom, driven by demand, new policies and affordability challenges, with investors exploring REITs and smart/sustainable developments

    The push for demand for both luxury and affordable housing surged, pushing prices up, particularly in high-growth areas like Ibeju-Lekki.

    The year also showcased high cost of construction materials and labour with a base material such as Cement costing up to N10,500 as against the previous year that was as low as between N4,000- N5,000. Cable, wires and iron doubled their previous year prices including plumbing materials.

    Read Also: Housing Minister empowers over 100 non-indigenes in Kano

    It was also characterised by strong growth, driven by rapid urbanisation, population boom, and massive housing deficits of about 30 million units, leading to high demand, rising property values, and a thriving rental market, though challenges like high inflation, Naira devaluation, and soaring construction costs persisted, pushing tech adoption.

    High inflation and elevated interest rates challenged affordability, yet a mild stabilisation in the forex market eased some construction cost pressures.

    With high demand, there was a greater push for innovation in providing affordable housing solutions, a development that brought opportunities for potential for high returns, diaspora investment, infrastructure projects, tech innovation

     But persistent inflation impacting purchasing power, high borrowing costs for buyers and developers and the affordability gap for average Nigerians also had its effect on the sector, notwithstanding that the rental market grew as buying became harder, but long-term prospects remained strong for those who could navigate financing.

    Short-term rentals took a huge leap in the sector this year as a lucrative investment, especially in business/tourism hubs, offering passive income. A major shift towards solar-powered, green estates is occurring, reducing operational costs and enhancing liveability, is also a trend in the sector this year.

    Renewed Hope

    In the outgoing year, the Renewed Hope Agenda had a mixed impact on real estate, stimulating investment and project groundbreakings while grappling with significant challenges like high inflation, rising construction costs, and an ongoing housing affordability crisis.

    The government, through the Ministry of Housing and Urban Development, initiated the construction of over 10,000 housing units across 14 states as part of the Renewed Hope Cities and Estates programme. These projects were designed to offer a range of housing options, from one-bedroom bungalows to duplexes, with completion of early phases- like the 700 units in Ibeju Lekki, Lagos, expected for presidential inauguration.

    But despite government efforts, high costs remained a major deterrent for most Nigerians. Inflation-induced pressures, foreign exchange instability and high mortgage interest rates often between 18-30 per cent in the commercial market meant many citizens felt little direct impact from the initiatives.

    Undeterred, the government introduced strategies to improve access to homeownership like the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), which was launched in earlier in the year. This fund aimed to provide mortgages at a more affordable 9.75 per cent interest rate with up to 20-year repayment plans, although initial uptake was slow. Similarly, the Federal Mortgage Bank of Nigeria (FMBN) expanded its rent-to-own and single-digit mortgage loan offerings to make homes more accessible to low- and middle-income earners and members of cooperative societies.

    The Renewed Hope Social Housing Programme planned to build 77,400 units in local government areas, offering them at heavily subsidised rates, with some allocated for free to vulnerable populations.

    Government’s land regulatory reforms agenda emphasised streamlining land administration to unlock “dead capital” valued at over $150 billion. Initiatives included a National Land Registration and Documentation Programme in collaboration with the World Bank to digitise land registries, improve transparency, and reduce bottlenecks that often hinder investment.

    Also, federal government finalized plans to establish six regional manufacturing hubs for building materials across the country. This was intended to reduce dependency on imported materials, cut construction costs, and create thousands of jobs, linking the housing sector to broader industrial goals.

    Overall, the Renewed Hope Agenda generated significant activity and laid policy groundwork for long-term transformation, but the real estate market in 2025 was still heavily influenced by persistent macroeconomic challenges, particularly inflation and high costs, which limited the immediate, widespread impact on housing affordability for the average Nigerian.

  • Addressing the housing challenge

    Addressing the housing challenge

    • By ESV Akwarandu Oluchi Ann

    Sir: The deficit in Nigeria’s housing sector remains very huge with some experts projecting that some 28 million housing units will be needed to bridge the gap; yet successive administrations have not demonstrated the will to address the shortfall.

    Next to food and clothing, housing is the next basic necessity, but this appears not to be an issue with government. Right from the colonial times, housing provision has been problematic simply because the authorities than  didn’t see housing as a priority. In fact, colonial masters only got involved in housing in the aftermath of the Bubonic plague that ravaged central Lagos in the 1960s. The colonial government needed a suitable accommodation for the victims hence the development of the Surulere Housing Estate. That marked the first time that the government will build houses for the people.

    This contrasts with Britian where  more than 50 per cent of houses are built by councils. If you take council housing out of the houses in London, the whole place will be empty. Here, they only got involved in the provision of housing for their own officials in Government Reserved Areas.

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    Unfortunately, this trend continued post-independence. Indeed, there was even no ministry for housing for several years, rather it was the ministry of works and housing and the concentration is always on works, with housing treated as a small part until professionals in the real estate industry cried out. 

    It was during the administration of the late president, Shehu Shagari, and Lateef Jakande in Lagos that government began to take housing as priority. Shagari built houses across most states of the federation; unfortunately, politics and corruption marred the project. At the state level, Jakande built houses at prices the people could afford, but then, this proved unsustainable.

    The issues with housing are manifold. A critical one is finance. It starts with the absence of mortgage system that can enable the public to buy a house.  Documentation is another problem. It takes years to get consent to transfer title on land and one still needs to pay between 10 to 15 percent of the cost of the land. This is aside the high cost of construction, especially in the regime of high exchange rates. With all these problems, how will the common man, people at the low end, have a house?

    No one is suggesting that the houses be made for the people. The truth is that money invested in housing can be recovered from their sale. What the government should begin to do is give consideration to innovative solutions such as modular housing, dry construction and other approaches that have shown promise in addressing the needs of low-income families.

    •ESV Akwarandu Oluchi Ann,

      Lagos.

  • Housing is a right

    Housing is a right

    Sir: Though globally recognized as the cornerstone of human rights frameworks, over a billion people worldwide continue to live in inadequate conditions or face homelessness. Access to decent and affordable housing remains unrealized for them.

     It is the same story in Nigeria. With a deficit of about 28 million housing units, Nigeria faces a critical housing shortage, causing house prices to skyrocket beyond the reach of middle-class families. This has left millions of Nigerians to grapple with inadequate living conditions, forcing many into slums and peripheral areas with limited infrastructure and social services.

    More Nigerians are being pushed into informal housing markets, those in the low ends are left to survive in environments where health, security, and opportunities for upward mobility are severely limited, which exacerbates poverty and undermines efforts to improve living standards.

    Yet Nigeria’s 1999 Constitution (as amended), section 43, explicitly  states that every citizen of Nigeria shall have the right to acquire and own immovable property anywhere in Nigeria. In other words, provision of adequate and quality housing is one of the roles of any government and one of its main responsibilities to its citizens. This resonates with the United Nations Habitat Agenda that underscores the provision of adequate and affordable housing as a fundamental human right. To this end, government should prioritize affordable housing by increasing investments in housing finance and infrastructure development. Public-private partnerships could play a pivotal role in addressing the deficit.

    Read Also: Stakeholders mull reforms in housing sector

    Housing sector needs a comprehensive overhaul. Government should spearhead the process by frontally addressing the factors that contribute to housing challenge in the country. Fundamental issues of high cost of land acquisition; long, complex and bureaucratic process of titling and documentation; increasing cost of building materials; and inadequate infrastructure have made it extremely difficult, if not impossible, for developers to build affordable homes. Government should address these issues.

     Government should address the issue of mortgage. Absence of a comprehensive mortgage system is a major impediment to home ownership. Federal government’s National Housing Programme and other initiatives have been marred by inadequate funding, corruption, and poor project execution. These combined have created significant barriers for middle and low-income earners to purchase homes.

    Home is where our story begins. As we grow older, home becomes our sanctuary. The home is the foundation and bedrock of stability and security for any individual or family. It is the centre of social, emotional, and to a large extent, economic life; a place to live in peace and dignity.

    Housing is a fundamental human right, it is essential for dignity, and man’s well-being. Right to adequate housing has been given a place within the provisions of International human rights law. Nigerian government should provide affordable housing for Nigerians.

    • ESV Aaron Ibironke, Lagos
  • FG begins process to provide 500 affordable housing units in 36 states

    FG begins process to provide 500 affordable housing units in 36 states

    …launches 1,000 housing units in six geopolitical zones, 100 units in all 774 LGAS, farm settlements

    As part of efforts to tackle the nation’s housing deficit, the federal government has commenced plans to provide 500 affordable housing units in each state of the federation.

    Director of Urban Development in the Federal Ministry of Housing and Urban Development, Ahmed Akintola, disclosed this in Akure, Ondo State, during a working visit with a team of federal officials.

    According to Akintola, under President Bola Tinubu’s administration, the government is also initiating 1,000 housing units under the Renewed Hope City project in each of the six geopolitical zones, 100 units in all 774 local government areas, and additional economic housing units in farm settlements nationwide.

    He revealed that the main purpose of the visit was to also understand the level of housing shortages in the state in order to initiate inclusive housing development in the state.

    Akintola stated, “This is part of the Federal government initiative for broader national programme aimed at generating accurate and up-to-date data on housing demand and supply gaps, housing quality and access to basic services which is in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu and the Sustainable Development Goals (SGDs).”

    Read Also: Mortgage critical to housing delivery

    He, however, officially introduced the lead consultant and field team that would facilitate their access to key stakeholders and establish institutional collaboration with the ministry to allign the survey finding with existing planned state housing initiatives.

    Akintola solicited the cooperation and support of the state government, most especially the state Ministry of Physical Planning and Urban Development, in providing relevant records and secondary data that will enhance the successful conduct of the survey. 

    Welcoming the team to his office in Akure, the Commissioner for Physical Planning and Urban Development in the state, Sunday Olajide pledged the state’s readiness to partner with the federal government in line with Governor Lucky Aiyedatiwa’s OUR EASE development agenda.

    Olajide lauded the initiative as a step toward bridging the housing gap and urged the team to engage key stakeholders and create public awareness about the survey’s benefits.

    Remarking, the lead consultant, Dr Osunsanmi Abolabo, revealed that a 35-member team of housing experts, town planners, supervisors, and enumerators will sample 5% of houses in Akure.

    He assured that they would work closely with state ministry professionals to ensure success.

    Permanent Secretary of the ministry, Oluwagbenga Akingbasote, also pledged full collaboration, affirming the competence of ministry staff to deliver on the project’s goals.

  • Fed Govt mobilises N70b private capital for housing

    Fed Govt mobilises N70b private capital for housing

    The Federal Government has mobilised over N70 billion in private capital to support its Renewed Hope Housing Programme, a national initiative aimed at reducing Nigeria’s housing deficit through public-private partnerships.

    This was disclosed by the Minister of Housing and Urban Development, Ahmed Musa Dangiwa, at the 19th Africa International Housing Show in Abuja. He also launched a state-by-state housing development campaign, reinforcing the administration’s commitment to delivering affordable homes across all 36 states and the FCT.

    “This administration is not just building houses; we are laying the macroeconomic and structural foundations that will make housing truly affordable and sustainable,” Dangiwa said during his keynote address.

    He disclosed that the Renewed Hope Housing Programme is structured around three key components: Renewed Hope Cities, Renewed Hope Estates, and Renewed Hope Social Housing Estates, designed to cater to various income groups, ensuring inclusive access to quality housing.

    The minister also announced new housing support initiatives by the Federal Mortgage Bank of Nigeria, including a Rent-to-Own Scheme and a Rental Assistance Product. Both products are aimed at easing access to affordable housing for urban workers and young families. The upcoming MOFI Real Estate Investment Fund is also expected to expand access to long-term mortgage financing, he stated.

    In a major policy shift, the Minister unveiled a nationwide campaign to strengthen subnational implementation of housing policies. The initiative he stated will involve embedding housing reform champions in state agencies, hosting housing roundtables, and supporting viable project development at the state level.

    Read Also: Dangiwa supports AHCN’s plan for affordable housing

    According to him, the Ministry is bringing federal and state governments, private developers, and international partners into closer alignment to deliver housing solutions that meet local needs.

    He reaffirmed the government’s commitment to urban renewal and slum upgrading in line with global standards such as the UN-Habitat Global Action Plan and the Addis Declaration on Inclusive Urban Development. “No one and no place is left behind,” he added.

    Calling for stronger collaboration, Dangiwa urged development finance institutions, donor agencies, and private investors to act on insights shared at the Africa International Housing Show and deliver real results.

    “Housing is not a privilege, it is a right. When we invest in housing, we invest in people, jobs, cities, and our collective future,” the Minister concluded.

    The Renewed Hope Housing Programme represents one of Nigeria’s most determined efforts to solve its housing crisis through sustainable financing and nationwide collaboration.

  • Fed Govt moves to cut housing costs

    Fed Govt moves to cut housing costs

    In a bold move to address the high cost of housing construction in Nigeria, the Federal Government, through the Ministry of Housing and Urban Development, has announced a high-level stakeholders’ meeting aimed at tackling key challenges in the building materials manufacturing sector.

    The meeting, set for  Lagos, will bring together industry experts, manufacturers, and policymakers to discuss ways to lower production costs and improve local access to building materials.

    The government acknowledges that high production costs, limited access to incentives, and dependence on imported building materials have significantly hindered the growth of Nigeria’s housing sector.

    As part of efforts to reverse this trend, the upcoming meeting will focus on strategies to boost local production, create an enabling environment for manufacturers, and strengthen public-private partnerships in the housing industry.

    According to the Ministry of Housing and Urban Development, engaging with stakeholders is critical to formulating sustainable policies that will lower the cost of construction.

    Experts argue that a reduction in building material costs will translate to more affordable housing for Nigerians, easing the burden on low and middle-income earners who struggle to own homes.

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    Festus Adebayo, Convener of the Africa International Housing Show (AIHS), will be one of the discussant. As a prominent advocate for housing sector reforms, Adebayo is expected to provide insights into how policy interventions and industry collaborations can drive cost-effective housing development.

    Adebayo is among stakeholders that will champion calls for increased government support for local manufacturers, better financing options, and policy incentives that will reduce the dependency on imported materials.

    The Africa International Housing Show has consistently advocated for practical solutions to Nigeria’s housing deficit and sees this engagement as an opportunity to push for industry-wide reforms.

    With the government’s renewed commitment to tackling the housing affordability crisis, stakeholders are optimistic that this meeting will lead to actionable steps that will bring down construction costs and accelerate housing delivery across the country.

  • Meeting housing target  

    Meeting housing target  

    • Involvement of private initiatives is the way to go

    A key feature of the acute incidence of widespread poverty in Nigeria is the inability of substantial numbers of the population to access affordable decent housing. As of 2024, the country’s housing deficit was estimated at 28 million housing units, a situation attributed, among others, to rapid population growth, the attendant acceleration of urbanisation and the consequent rise in the number of people unable to rent or own wholesome accommodation. The inevitable growth of overcrowded urban slums breed low quality of life and make more people vulnerable to communicable diseases, with negative implications for qualitative healthcare.

    It is against this background that President Bola Tinubu, in his Renewed Hope Agenda, promised during the election campaigns to target providing a cumulative 24 million housing units by 2028, which means providing at least four million housing units every year, from 2023. The sad reality, however, is that the country lacks the financial resources to actualise this plan from its annual budgetary provisions. Experts project that no less than N5.5 trillion will be required annually to address the current housing shortfall, with the Federal Ministry of Housing and Urban Development requesting an annual allocation of N500 billion to support housing development.

    But in the 2024 budget, N27.6 billion was allocated to the ministry, and N404 million to the Federal Housing Authority (FHA). And for 2025, the ministry got N98.13 billion while N11.5 billion is earmarked to construct 20,000 housing units, of which 13, 612 are currently under construction through the Renewed Hope Cities and Estates Initiative. In the face of this obvious dearth of public funding for mass housing, the initiative by the Tinubu administration to launch a N100 billion private-sector driven real estate financing scheme is a step in the right direction.

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    The Real Estate Investment Fund (MREIF), driven by the Ministry of Finance Incorporated (MOFI), aims to mobilise businesses and investors to contribute to the county’s housing development by raising N1 trillion to provide long-term, low-cost mortgage financing for home ownership. Given the high cost of land and building materials such as cement and iron rods, only a minuscule percentage of the population can afford to raise lump sums to build or buy houses at a go. The scheme thus makes the process of owning houses easier and more convenient for low and medium income groups by providing affordable mortgage loans with repayment periods of up to 25 years, and interest rates set at 11-12 percent, rates substantially lower than those offered by commercial banks.

    The Managing Director of MOFI, Dr Armstrong Takang, explained that the scheme will be actualised through a blended finance structure where public funding sourced at one per cent, is combined with private sector investments to reduce borrowing costs. It is anticipated that private sector actors such as asset managers and issuing houses will raise the N100 billion from the capital market. The reported success of the first phase which raised N150 billion to achieve the housing development goal raises optimism that this second phase will also meet the desired target.

    We support all efforts to continually increase the stock of houses available such that as supply outstrips demand, prices will fall and more people across income categories will be able to own houses. However, government must not relent in efforts to reduce the prices of building materials, particularly cement, which we have local raw materials to produce in abundance. The Nigerian Building Research Institute (NBRI) and other professional institutions and stakeholders should also continually strive to discover alternative raw materials and construction techniques that can help bring down costs without compromising durability and safety.