Land Use Act Reforms: The Key to Unlocking Nigeria’s Housing Deficit?

ESV Lilian Ejimofor

Nigeria’s housing deficit, estimated at over 20 million units, remains one of the country’s most pressing socio-economic challenges. Despite government housing initiatives and private sector interventions, access to affordable housing continues to elude millions of Nigerians. At the heart of this crisis lies a fundamental issue: land. Without reforms to Nigeria’s Land Use Act of 1978, efforts to close the housing gap may remain cosmetic at best.

The Land Use Act was enacted with the intention of streamlining land administration and ensuring equitable access. It vested all land within a state in the governor, to be held in trust for the people. In principle, this was meant to curb land speculation and make land allocation fairer. In practice, however, the Act has created layers of bureaucracy that make land acquisition slow, costly, and uncertain. Certificates of Occupancy, which confer legal ownership, are notoriously difficult to obtain, often requiring years of processing and significant unofficial costs.

This bureaucratic bottleneck discourages both individuals and developers. For aspiring homeowners, the lack of secure titles makes it nearly impossible to access mortgage financing, since banks require collateral backed by clear ownership documents. For developers, delays in land acquisition and uncertainty over tenure raise the risks and costs of housing projects. The result is a vicious cycle where demand for housing continues to outstrip supply, while land—the most basic input for housing—remains underutilized.

Reforming the Land Use Act is therefore central to addressing Nigeria’s housing deficit. First, reforms should focus on decentralizing and digitizing land administration. Moving land registries online and simplifying procedures would reduce corruption, cut processing times, and improve transparency. A secure, digital system would also provide clarity on ownership, reducing the endless disputes that currently plague land markets.

Second, reforms must prioritize affordability and inclusivity. Land allocation today often favors political elites and large developers, leaving ordinary citizens marginalized. A reformed framework should make provision for low- and middle-income earners to access land under fair terms. This could include simplified procedures for smaller plots, community land trusts, or cooperative housing schemes supported by clear legal backing.

Third, the financial sector stands to benefit from reform. With a transparent and efficient land titling system, banks would feel more confident in extending mortgage loans, knowing that titles can serve as enforceable collateral. This could deepen Nigeria’s mortgage market, which remains one of the smallest in Africa relative to GDP. Expanding access to affordable financing would, in turn, stimulate demand and supply in the housing sector.

Critics may argue that reforms to the Land Use Act are politically difficult, given vested interests and the constitutional hurdles involved. Indeed, amending the Act requires a complex process, since it is entrenched in the constitution. But the scale of Nigeria’s housing crisis demands bold action. Without reform, the housing deficit will only worsen as urban populations swell.

Unlocking Nigeria’s housing potential is not merely about building more houses; it is about removing the structural obstacles that keep land and housing out of reach. Reforming the Land Use Act is not a silver bullet, but it is a necessary foundation. If Nigeria is serious about closing its housing gap, the conversation must shift from short-term projects to long-term structural change and land reform is the place to start.

Ejimofor, an Estate Surveyor and Valuer writes from Umuahia, Abia State.