Nigeria’s housing sector is under growing pressure as experts warn that piecemeal efforts cannot resolve the deficit now estimated at over 20 million units. They argue that a coherent strategy is required, with government providing serviced land, infrastructure, and regulatory stability, while the private sector takes the lead in delivery, financing, and innovation.
Despite decades of interventions, including government estates, mortgage institutions, and revised housing policies, supply of affordable homes continues to trail demand. Millions of families remain trapped in overcrowded rentals and slums, while official estimates show that the country must deliver at least 550,000 new units annually over the next decade to close the gap. Current output is far from that mark, yet experts maintain that the market holds vast potential. Housing already contributes 5.2 percent to GDP, and real estate investment could reach ₦2.25 trillion by 2025 if structural barriers are addressed.
One of the biggest hurdles is land. The Land Use Act of 1978, which vests control in state governors, was intended to ease access but has instead created complex procedures, overlapping claims, and high costs that discourage investors. Reforming the process through digitised registries and transparent allocation is seen as critical to restoring investor confidence and cutting expenses.
Finance poses another major challenge. With mortgage penetration below five percent and lending rates in double digits, homeownership is unattainable for most Nigerians. Institutions such as the Federal Mortgage Bank of Nigeria and the Nigeria Mortgage Refinance Company exist but have limited reach. Experts believe financing should be expanded to include pension funds, insurance pools, diaspora remittances, and innovative schemes like rent-to-own, shared equity, and micro-mortgages. Without affordable credit, even well-conceived projects cannot take off.
Rising construction costs, fueled by inflation above 20 percent and dependence on imported building materials, further complicate matters. Developers and policymakers are pushing for local alternatives and encouraging prefabricated and modular construction methods. Supporting domestic manufacturing of cement, tiles, and roofing materials would cut costs, create jobs, and strengthen the sector’s resilience.
The rental market, which absorbs the bulk of urban demand, also faces pressure as cities expand at more than four percent annually. Tenants are left vulnerable to arbitrary rent increases, weak legal protections, and poor-quality housing. Experts recommend institutionalising rental housing through Real Estate Investment Trusts, upgrading existing stock, and enforcing tenancy rights to bring order to the market.
The government has introduced some programmes in response. The Renewed Hope Housing Programme targets 50,000 units in its first phase, with over 10,000 already under construction in 14 states and the FCT. The National Urban Renewal and Slum Upgrade Programme is also delivering roads, drainage, and sanitation in underserved communities. However, the country’s history of abandoned projects has eroded public trust. Observers insist that only measurable targets, transparency, and continuity can restore credibility.
The private sector’s contribution remains vital. Developers are frequently criticised for focusing on luxury estates far beyond the reach of most citizens while neglecting mass housing. Stakeholders argue that government must incentivise affordable housing delivery through tax reliefs, infrastructure support, and faster approvals. Secure land titles, predictable regulation, and reliable infrastructure are equally necessary to reduce risk and attract investment.
Former president of the Nigerian Institute of Town Planners, Nathaniel Atebije, noted that low mortgage uptake is also a result of poor public sensitisation. He urged government to raise awareness about financing opportunities available through institutions such as the Family Homes Fund and refinancing schemes. He further advocated incremental housing models, modular housing factories across the regions, and green construction practices to reduce costs.
Senior lecturer in Estate Management at Obafemi Awolowo University, Dr Daramola Olapade, observed that high interest rates, tough lending conditions, and the exclusion of informal sector workers discourage Nigerians from embracing mortgage systems. He argued that government must work with financial institutions to design competitive rates backed by state guarantees, while streamlining processes and introducing innovative mortgage products. Olapade recommended harnessing indigenous financial practices such as esusu and ajo for cooperative housing, as well as public-private partnerships that combine government land and infrastructure with private sector capital to lower delivery costs.
He further urged policymakers to reform land accessibility, simplify title registration, and cut bureaucratic delays using technology such as blockchain and GIS. He also called for stronger support for research, noting that universities have developed affordable housing prototypes that could be replicated nationwide for less than ₦10 million. Subsidies and tax incentives, he argued, would encourage the use of local materials and modern methods such as prefabrication and 3D printing.
Chairman of the Association of Capital Market Valuers, Chudi Ubosi, stressed that digitisation of land registries would reduce disputes, ease foreclosure, and boost investor confidence. According to him, simpler and more transparent land transactions would cut litigation delays and encourage developers and financiers to expand investment.
Ultimately, experts agree that housing recovery cannot be pursued in isolation from broader economic reforms. They argue that the sector is both a social necessity and an economic catalyst, capable of generating jobs, stimulating manufacturing, deepening financial markets, and strengthening urban resilience. Ubosi added that what is required is holistic growth under an enabling environment where both government and private sector can thrive.
Until Nigeria embraces this integrated approach, the housing dream will remain elusive. But with sustained commitment, consistent policy, and genuine collaboration among stakeholders, the sector has the potential to become a pillar of national growth and social stability.
