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

ESV Adeolu Emmanuel Adejimi

Access to affordable housing remains one of Nigeria’s most pressing challenges. Despite numerous government interventions, millions of Nigerians still lack decent accommodation. According to the Federal Mortgage Bank of Nigeria (FMBN), the country’s housing deficit stands at over 20 million units a figure that continues to rise with rapid urbanization and population growth. The dream of homeownership for many low- and middle-income earners seems out of reach, largely due to the high cost of land, poor access to mortgage financing, and low disposable income.

In the face of these challenges, rent-to-own schemes have increasingly emerged as a practical alternative. This model allows tenants to pay rent that contributes toward eventual ownership of the property over time, often spreading payments across several years. It combines the flexibility of renting with the long-term benefit of owning a potential game changer for Nigeria’s struggling housing sector.

Rent-to-own housing schemes are not new globally. Countries like Singapore and Malaysia have successfully implemented similar models to expand access to homeownership. For Nigeria, such schemes could serve as a bridge between the housing deficit and the financial realities of its citizens. With over 60 percent of Nigerians earning less than ₦100,000 monthly, traditional mortgage options remain inaccessible. A rent-to-own structure could allow individuals to gradually acquire homes without the heavy burden of upfront payments or high-interest loans.

However, for this model to thrive, Nigeria must address certain structural and policy bottlenecks. Firstly, the issue of trust and transparency in housing schemes has discouraged participation in past initiatives. Many Nigerians have lost money to fraudulent developers and inconsistent government projects. To build confidence, government agencies and private developers must adopt clear contractual terms, transparent pricing, and effective monitoring systems.

Secondly, rent-to-own projects require sustainable financing. Government intervention, through agencies like the FMBN and the Family Homes Fund, should focus on providing low-interest capital to developers and financial institutions willing to participate. Partnerships with pension funds, cooperatives, and private investors can also help spread the financial risk and ensure continuity.

Equally important is policy reform. Nigeria’s current housing finance ecosystem favors high-income earners. Policymakers must design rent-to-own frameworks that cater specifically to low- and middle-income households the largest segment of the population. Urban planning laws should also support affordable housing developments by ensuring land availability and reducing bureaucratic bottlenecks in land allocation and titling.

Beyond financing, technology can play a role in scaling the model. Digital platforms could be used to track payments, manage contracts, and ensure accountability among all stakeholders. Integrating such tools would improve transparency, reduce fraud, and attract more participants. If properly implemented, rent-to-own housing schemes can contribute significantly to Nigeria’s economic and social stability. Homeownership not only provides shelter but also promotes wealth creation, family security, and civic responsibility. It encourages savings culture and reduces pressure on rental markets, where prices have soared in major cities like Lagos and Abuja.

Ultimately, bridging Nigeria’s housing gap requires a shift from rhetoric to result-oriented strategies. Rent-to-own schemes offer a realistic pathway for millions who cannot afford to buy homes outright or qualify for traditional mortgages. What remains is the political will to institutionalize and scale such initiatives across the country. For a nation with an ever-growing population and a widening inequality gap, prioritizing rent-to-own housing may well be the most practical step toward ensuring every Nigerian has a place to call home.

ESV Adeolu Emmanuel Adejimi, a registered Estate Surveyor and Valuer is currently the branch Chairman of the Nigerian Institution of Estate Surveyors and Valuers, Ogun State Branch