Nigeria’s improving public revenue and broader economic indicators have yet to provide significant relief for many households, according to the Alliance for Economic Research and Ethics (AERE).
The group has urged President Bola Tinubu’s administration to ensure that the gains from economic reforms reach households through stronger incomes, improved purchasing power, lower living costs and better access to affordable housing and credit.
The call highlights a growing concern within Nigeria’s housing sector: economic recovery may have limited impact on living standards if household incomes continue to fall behind the cost of basic needs.
Revenue Growth Raises Expectations
AERE acknowledged the improvement in government revenue under the Tinubu administration, particularly through stronger tax collection.
The organisation said Nigeria Revenue Service collections increased from ₦12.3 trillion in 2023 to ₦27.1 trillion by July 2026. It said the increase gives the government more fiscal capacity to finance infrastructure and public programmes.
However, AERE argued that higher government revenue should translate into visible improvements in household welfare.
The group said economic performance should not rely only on indicators such as revenue collection, foreign exchange conditions and financial market activity. It argued that the ability of households to afford food, shelter and other basic needs should also form part of the assessment.
Housing Affordability Under Pressure
The issue has direct consequences for Nigeria’s housing market.
Rising rents, land prices, construction costs and utility expenses continue to place pressure on household finances. Even if inflation begins to slow, housing may remain unaffordable if wages do not increase at a similar pace.
For many Nigerians, the challenge has moved beyond finding accommodation. They must also determine whether they can continue paying for that accommodation without sacrificing other essential expenses.
The pressure is especially visible in major urban centres such as Lagos, Abuja and Port Harcourt, where demand for housing remains high and available properties often command significant prices.
Income Growth Is Critical
Household income remains a key factor in determining effective demand for housing.
When salaries and business earnings fail to keep pace with rents and property prices, households may move to cheaper locations or accept smaller and less suitable homes. Some may also spend a growing share of their income on accommodation.
The situation creates challenges for developers as well. Construction costs remain high, but developers cannot increase selling prices indefinitely without reducing the number of potential buyers.
This creates a difficult balance between the cost of delivering housing and what households can realistically afford.
Mortgage Access Remains Limited
Affordable housing finance will also play an important role in translating economic recovery into higher homeownership.
High interest rates and limited access to long-term mortgage funding continue to restrict conventional home loans for many Nigerians, particularly low- and middle-income earners.
Recent efforts to expand mortgage products, including financing options for Nigerians living abroad, point to opportunities for expanding housing finance. However, the domestic market still requires mortgage products with longer repayment periods and more affordable financing costs.
A stronger economy, therefore, needs to support both income growth and access to housing finance if more households are to transition from renting to homeownership.
Infrastructure Can Lower Housing Costs
Higher government revenue could also support housing through investment in basic infrastructure.
Roads, public transport, drainage, water systems and electricity can make emerging areas more suitable for residential development. Reliable infrastructure can also reduce the additional costs households face when they live in poorly serviced communities.
For developers, public infrastructure can reduce the amount they need to spend on estate-level facilities. That can help improve project viability and potentially support the delivery of homes at more accessible prices.
Risk of a Wider Housing Divide
A key concern is that economic gains could reach property owners and investors faster than households that depend on wages or small businesses.
Property owners may benefit from higher asset values and rental income while tenants struggle with rising housing costs. This could create a property market where real estate remains attractive as an investment but becomes increasingly difficult for ordinary Nigerians to access as housing.
Closing that gap requires more than simply increasing housing supply. New homes must also match the purchasing power of the people who need them.
Policy Must Address Housing Supply and Demand
Several structural factors continue to influence the cost of housing in Nigeria. These include expensive land, building materials, infrastructure gaps, financing costs and regulatory delays.
AERE’s call therefore places household welfare at the centre of the economic recovery debate. If additional public revenue supports infrastructure, land administration, housing finance and appropriate development incentives, it could help reduce some of the costs that make housing expensive.
For Nigeria’s housing sector, the wider lesson is clear: economic recovery will have greater social impact when stronger public finances translate into better household purchasing power and more affordable homes. The challenge for policymakers is to ensure that growth in government revenue does not remain separate from the everyday cost of securing decent housing.
