Affordable Housing in Nigeria: Myth or Reality?

ESV Oladeji Eniola Macellina,

Affordable housing in Nigeria remains one of the most pressing socio-economic challenges, with millions of citizens struggling to secure decent and affordable shelter. The housing deficit is estimated to exceed 20 million units, and this gap continues to widen due to rapid urbanization, economic instability, and high construction costs. In major urban centers like Lagos, Abuja, and Port Harcourt, homeownership is increasingly out of reach for many, while rent prices continue to rise, making housing affordability a myth rather than a reality for most Nigerians.

One of the fundamental barriers to affordable housing is the high cost of land acquisition. The Land Use Act of 1978 places land ownership under the control of state governments, making the process of obtaining land cumbersome and expensive. Individuals and developers often face bureaucratic hurdles, multiple ownership claims, and high transaction costs, which deter investment in low-cost housing. Additionally, the cost of construction materials has skyrocketed due to inflation and the heavy reliance on imported goods. Cement, iron rods, and other essential building materials are subject to foreign exchange fluctuations and high import duties, making construction costs unreasonably high.

Another critical issue is the lack of accessible mortgage financing. In many developed economies, mortgage systems provide a pathway for citizens to own homes through long-term, low-interest loans. However, in Nigeria, mortgage interest rates range between 15% and 30%, making it nearly impossible for middle and low-income earners to afford housing through financing. The stringent requirements for obtaining loans further exclude a large percentage of the population from homeownership opportunities.

Government-led housing schemes have attempted to address the issue, but most of these programs have failed to meet the needs of the majority. Many affordable housing initiatives have been plagued by corruption, poor implementation, and a mismatch between pricing and the income levels of intended beneficiaries. Private developers, on the other hand, often prioritize luxury real estate projects, which offer higher returns on investment compared to low-cost housing.

Urban migration continues to put pressure on the housing sector, with cities experiencing an influx of people in search of better opportunities. This demand far outweighs supply, leading to overcrowding, slum development, and exorbitant rental prices. Additionally, infrastructure deficits, such as inadequate road networks, unreliable electricity supply, and poor water access, further contribute to the high cost of housing and reduce the livability of many areas.

To turn affordable housing from myth to reality, several measures need to be taken. A review of the Land Use Act is necessary to streamline land acquisition processes and reduce costs. The government should incentivize local production of building materials to lower construction costs and provide tax breaks to developers investing in affordable housing projects. Strengthening the mortgage sector by introducing lower interest rates and flexible repayment plans will also encourage homeownership among Nigerians.

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) and other professional bodies can play a crucial role by promoting transparent property valuation, advocating for housing policy reforms, and ensuring fair pricing mechanisms in the real estate sector. Additionally, there should be stronger collaboration between the public and private sectors to develop large-scale, sustainable, and truly affordable housing solutions.

If decisive actions are taken, the dream of affordable housing can become a reality, offering millions of Nigerians a chance at decent and dignified living conditions. Without these reforms, however, the housing crisis will persist, leaving many to navigate an uncertain and expensive real estate market.

ESV Oladeji Eniola Macellina, a registered Estate Surveyor and Valuer, writes from Abeokuta, Ogun State, Nigeria.