Dangiwa Woos Saudi Investors, Says Real Estate Added 5.2% to Nigeria’s GDP in 2024

•Estimates nation’s housing deficit at 28 million units

Emmanuel Addeh in Abuja

The Minister of Housing and Urban Development, Ahmed Dangiwa, has disclosed that the real estate sector contributed around 5.2 per cent to the nation’s Gross Domestic Product (GDP) in 2024, but said that there was still around 28 million housing deficit despite the noticeable growth.

Dangiwa spoke at a panel discussion at the Saudi Arabia Real Estate Forum, according to a statement yesterday by his Special Assistant on Media and Strategy, Mark Chieshe.

He called on global investors in Saudi Arabia to take advantage of the huge opportunities in Nigeria’s housing sector, specifically the Renewed Hope Cities and Estates Programme of the federal government.

Dangiwa disclosed that Nigeria’s huge housing deficit offers enormous business opportunities, and the country’s housing programme serves as a low-hanging fruit for investors in the Middle Eastern nation to take advantage of and get good returns.

The forum themed: “Balance and Innovation in the Real Estate Landscape,” was held at the Four Points Hotel in Riyadh and featured Abdullah Al-Attiya, Minister of Municipality, Qatar and Dr. Abdulla Muththalib, Minister of Construction, Housing, and Infrastructure, Republic of Maldives.

“Nigeria’s real estate sector contributed around 5.2 per cent to the nation’s GDP in 2024… Despite this, there is still tremendous opportunity for investment, especially in the residential real estate segment. Nigerians need homes now more than ever and you can partner with the Nigerian government to deliver these houses at scale,” he said.

Dangiwa noted that Nigeria faces an estimated housing deficit of 28 million units, a situation exacerbated by rapid urbanisation and migration.

“The government is tackling this by prioritising large-scale housing delivery through public-private partnerships, innovative financing, and government-led interventions. Additionally, efforts are underway to engage state governments in unlocking land for affordable housing projects, as difficulties in land acquisition continue to hinder progress,” he added.

He argued that achieving a balance in the real estate sector between affordability and profitability means that the challenges of sustainability and cost efficiency, as well as policy and private sector incentives must be addressed.

Addressing the divergence between affordable housing and profitability for developers, he acknowledged concerns that affordability often conflicts with commercial viability.

“To counter this in Nigeria, the government is using incentives such as bankable offtake guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing.

“The planned National Social Housing Fund aims to mobilise long-term concessional financing to ensure accessibility for lower and middle-income Nigerians. Furthermore, innovative models such as off-plan sales and bulk purchasing by cooperatives are being explored to reduce financial risks for developers while ensuring affordability for buyers,” he noted.

The minister also touched on the subject of sustainability, stressing that energy-efficient buildings, the use of local materials, and smart construction techniques ultimately lower maintenance and operational costs.

He further assured the investors of the government’s commitment and actions towards enhancing the affordability of Nigerians to purchase homes through mortgage.

Dangiwa pointed out that high-interest mortgage rates, which can reach up to 30 per cent per annum, have historically made homeownership difficult for many Nigerians. To address this, he said the government was expanding the reach of the Federal Mortgage Bank of Nigeria (FMBN) and recapitalising it with N500 billion to provide more accessible single-digit mortgage products.

“Additionally, collaborations with the Ministry of Finance Incorporated are in progress to leverage the Nigerian Capital Market and mobilise private sector funding for housing development. The Real Estate Investment Fund, targeting 12 per cent mortgage interest rates instead of the market’s 28-30 per cent, aims to provide bankable offtaker guarantees for developers.

“Meanwhile, rent-to-own schemes are being introduced to facilitate homeownership through flexible payment structures, including a rental assistance product that enables qualifying applicants to pay rent in monthly installments rather than upfront lump sums,” he added.

Dangiwa said that the localisation of housing production remains a priority, with the ministry championing modular and prefabricated housing technologies to accelerate delivery and reduce costs.

“By promoting local production and reducing dependence on expensive imports, Nigeria aims to build more homes efficiently and affordably,” he stressed.

He acknowledged the challenge investors have with regard to achieving balance in the sector, urging them not to treat balance and innovation in real estate as mutually exclusive, but noted that they can be pursued simultaneously through smart policies, innovative financing, sustainable construction, and digital transformation.