Bridging the Housing Gap: Should Nigeria Prioritize Rent-to-Own Schemes?

ESV Obaze Francis Onyeka,

Nigeria faces one of the most pressing housing deficits in the world. According to estimates, the country requires over 20 million housing units to bridge the gap, with urban centers like Lagos, Abuja, and Port Harcourt recording the highest shortages. For many Nigerians, especially low- and middle-income earners, owning a home has become an unattainable dream. Mortgage systems remain inaccessible due to high interest rates, while skyrocketing rent prices further deepen the crisis. Against this backdrop, the rent-to-own housing model has emerged as a potential solution worth serious consideration.

The rent-to-own system allows tenants to pay rent on a property with the option of eventually owning it after consistent payments over a set period. Unlike traditional mortgage schemes that demand substantial deposits and charge double-digit interest rates, this model provides flexibility and affordability. For a country where many struggle to save beyond daily survival, the appeal is obvious: it brings home ownership within reach for millions.

Proponents argue that rent-to-own schemes could democratize housing access by reducing entry barriers. Rather than saving for years to pay a lump sum or battling with commercial banks for loans, tenants gradually build equity while enjoying the stability of a permanent residence. Furthermore, such schemes offer psychological security—knowing that every rent payment is an investment toward eventual ownership rather than money “lost” to a landlord.

The Lagos State government has already piloted such initiatives through its LagosHOMS project, giving thousands of residents opportunities to transition from tenants to homeowners. However, scaling these programs nationwide has proven difficult, largely due to funding constraints, corruption, and weak institutional frameworks. Private developers, too, remain hesitant, citing poor returns on investment and the risks associated with long-term rent recovery in an economy marked by inflation and income instability.

Still, the housing crisis demands bold innovations. Nigeria cannot continue to rely solely on conventional methods that have clearly failed to meet the needs of its growing population. Rent-to-own models, if properly structured, could be part of a multi-pronged solution. But this requires more than rhetoric; it demands policy alignment, financial incentives, and public-private partnerships.

Government must first create enabling policies that reduce the cost of construction materials and incentivize developers to embrace rent-to-own housing. Tax breaks, land subsidies, and access to low-interest construction loans could make the model more attractive to private investors. Equally important is transparency: without strict regulation and monitoring, such schemes risk being hijacked by political elites or developers who inflate costs beyond the reach of intended beneficiaries.

Moreover, rent-to-own should not be seen as a silver bullet. Nigeria’s broader housing ecosystem needs urgent reform—ranging from land tenure systems that make property ownership cumbersome to poor urban planning that fuels slums. Expanding access to affordable mortgages, encouraging cooperative housing societies, and supporting incremental housing (where families build gradually as funds allow) are equally critical.

In the end, the central question is whether Nigeria is willing to prioritize housing as a human right rather than a privilege. Rent-to-own schemes may not solve every problem, but they can be a bridge for millions of Nigerians stuck between unaffordable rents and inaccessible mortgages.

The time has come for policymakers to think creatively. By adopting rent-to-own models alongside other housing reforms, Nigeria can begin to chip away at its housing deficit and offer citizens not just shelter, but dignity and stability.

ESV Obaze Francis Onyeka, a practicing Estate Surveyor and Valuer , wrote from Enugu, Nigeria.