Year in and year out, Nigeria’s building and construction sector has experienced decades of decay riddled with failed political promises, further eroding the confidence of citizens, especially the low-income strata of society, in aspiring to own a home. The failure of these Nigerian administrations to address the key issues tying down the built sector has not only led to the proliferation of informal settlements and slums, where living conditions are often dire but has also exposed the nation to a housing deficit of over 20 million units, a figure that underscores the severe shortage of adequate housing available to the population.
The experience of rapid urbanisation, driven by a booming population, has exacerbated this shortage as cities struggle to accommodate the influx of new residents. Other factors, such as rising inflation, high cost of living, low incomes, and lack of supporting homeownership policies, are also worth noting. In this era where political promises often fall short, findings have shown that Nigeria’s housing sector is witnessing some transformative change. The last year has seen remarkable progress, typically taking the nation about a decade to achieve. Lately, the industry has been characterised by a relentless pursuit of innovation, hinged on accessibility and inclusivity, towards ensuring that homeownership is no longer an exclusive preserve for the rich. It is a known fact that housing is a fundamental human right central to any nation’s well-being. It provides more than just shelter; it is a cornerstone of health, security, social and economic opportunity. Nigeria currently faces a housing deficit of over 20 million units, underscoring the severe shortage of adequate housing available to the population. Rapid urbanisation, driven by a booming population, has exacerbated this shortage as cities struggle to accommodate the influx of new residents.
Other factors, such as rising inflation, high cost of living, low incomes, and lack of supporting homeownership policies, are also worth noting.
The result has been the proliferation of informal settlements and slums, where living conditions are often dire.
A recent survey by PwC highlighted that 75 per cent of Nigeria’s 42 million housing units are substandard, a statistic that starkly illustrates the depth of the crisis. The housing deficit, compounded by systemic issues within the housing sector, including high construction costs, restrictive land acquisition processes and limited access to affordable financing options, has created significant barriers to homeownership for millions of Nigerians. Moreover, the sector has been plagued by inefficiencies in public housing agencies, outdated policies, and a lack of coherent national strategy. Within this challenging environment, the present ministers said the sector needs a clear resolve to confront these issues head-on and effect lasting change.
One noble act promoted by the present handlers of the housing ministry is sincerity in saying things the way they are while working hard to ensure that the wrong records are corrected within the shortest possible time.
Minister of housing, Ahmed Dangiwa, has on several occasions identified the lack of access to affordable housing finance as one of the major causes of the housing deficit in Nigeria, revealing that 80 per cent of Nigerians cannot afford mortgage services. Worried by the trend of events over the years within the housing sector, LEADERSHIP contacted the office of the minister of housing to give Nigerians blueprints of what his immediate actions are on settling this perennial housing deficit, especially among the low-income groups and his special assistant on media, Mark Chieshe revealed that his principal had set an ambitious target of constructing at least 20,000 housing units annually, showing that this target is mainly focused on creating affordable housing options for low and middle-income earners, who experience difficulty in accessing housing within the affordable threshold. He said establishing the National Social Housing Fund, designed to provide financing options for those lacking access to traditional mortgage facilities, is critical to this initiative.
By increasing the supply of affordable housing, the Ministry aims to make homeownership a reality for millions of Nigerians.
The president/chairman of the Real Estate Developers Association of Nigeria, REDAN, Prince Akintoye Adeoye, just a few days back, at a press conference in Abuja, expressed optimism over the present stands of the built sector and said despite the present economic challenges, the federal government and private developers are immensely providing shelter to all classes of income earners irrespectively of whether they are working with the public service or private sectors. He said, “REDAN recognises the notable progress in increasing the availability of affordable and decent housing for Nigerians, as demonstrated by the groundbreaking of 6,612 housing units across 13 locations nationwide under the Ministry’s Renewed Hope Cities and Estates Programme.
We also commend the Ministry’s Urban Renewal and Slum Upgrade Programme, which aligns perfectly with REDAN’s advocacy for inclusive development.”
Recently, at the Maiden Kaduna International Housing Exhibition held at the Umaru Musa Yar’adua Hall, Murtala Square, Kaduna, the managing director and chief executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, highlighted the need for Nigerians to embrace the housing interventions driven by the Federal Ministry of Housing and Urban Development.
He noted that such subsidies and incentives are necessary tools to address Nigeria’s affordable housing challenge. Osidi further outlined the various efforts put in place by the government through the Federal Mortgage Bank of Nigeria to meet the housing needs of Nigerians within the low—and middle-income brackets, noting that many more incentives in the form of subsidies will be introduced in the coming months and years.
He urged Nigerians to take advantage of the available options to achieve their dream of homeownership.
A civil Engineer, Ansa said that even though almost half of Nigeria’s population of over 201 million is poor and has weak purchasing power, recent statistics reveal that Nigeria is a low-income country. Only 13 per cent of its population falls within the middle class, and a significant part falls below the poverty line.