Minister: Housing, Real Estate Contributed N77 Trillion to Nigeria’s Economy in 2025

• FG targets stronger regulation, reforms to tackle 15m housing deficit

Emmanuel Addeh in Abuja

The Minister of Housing and Urban Development, Muttaqha Darma, has disclosed Nigeria’s housing and construction sector contributed more than N77 trillion to the nation’s economy in 2025.

According to him, the real estate services alone accounted for N41 trillion, representing 13.4 per cent of the country’s Gross Domestic Product (GDP), the ministry said in a statement.

The minister revealed the figures in Abuja at a stakeholders’ validation workshop on the National Housing Data Programme and the National Housing and Built Environment Regulation Policy, describing the housing sector as one of Nigeria’s largest economic drivers despite longstanding challenges of weak regulation, inadequate mortgage financing and poor housing data.

According to him, the workshop represented the final opportunity for stakeholders to scrutinise the proposed policies before they are presented to the Federal Executive Council (FEC) for approval.

“This gathering is not a ceremony. It is the last door these policies pass through before the Federal Executive Council. What you say here will change what I carry to Council. I am not asking for applause. I am asking you to be critical,” Darma said.

The minister noted that despite the sector’s growing contribution to economic output following the rebasing of the economy, millions of Nigerians remain exposed to fraudulent housing transactions, failed developments and weak consumer protection because the industry lacks an effective regulatory framework.

“Following the rebasing of the nation’s economy, real estate services alone account for about 13.4 per cent of Nigeria’s Gross Domestic Product (GDP), representing approximately N41 trillion, and together with construction, contributed over N77 trillion to the economy in 2025,” Darma said.

Drawing lessons from Dubai, Darma said the emirate’s introduction of compulsory escrow accounts in 2007, alongside the licensing of developers and estate agents, helped build investor confidence and enabled it to record over 270,000 property transactions valued at about $250 billion in 2025.

He argued that Nigeria must implement similar reforms to protect homebuyers, improve construction standards and attract greater domestic and foreign investment into the housing sector.

The minister also expressed concern over the recurring incidence of building collapse and the country’s weak mortgage system, noting that although millions of Nigerians contribute annually to the National Housing Fund, access to affordable mortgages remains extremely limited.

He explained that the proposed National Housing and Built Environment Regulation Policy seeks to introduce licensing for developers and estate agents, escrow protection for buyers’ funds, improved professional standards, enhanced construction quality, better land administration, urban renewal without displacement and the establishment of a National Housing Data Observatory.

According to him, the policy also proposes the establishment of a National Housing Industry Regulatory Commission to strengthen oversight of the sector nationwide.

Darma added that the proposed National Mortgage Industry Policy would establish a National Housing Finance Authority, reform the Federal Mortgage Bank of Nigeria (FMBN), expand access to the National Housing Fund for workers in the informal sector and provide a stronger framework for diaspora housing investment.

On housing statistics, the minister disclosed that the Technical Committee adopted internationally recognised methodologies, including the World Bank Adequate Housing Index and the UN-Habitat Household Crowding Index, arriving at a core national housing deficit of about 15 million housing units.

He urged stakeholders to rigorously examine the methodology, stressing that credible housing data remains fundamental to effective planning, policy formulation and investment decisions.

Earlier, the Permanent Secretary in the ministry, Dr. Shuaib Belgore, who chairs the 13-member National Housing Data Steering Committee, said fragmented data and weak regulatory enforcement had constrained effective planning, investor confidence and housing quality over the years.

Also speaking, Chairman of the House of Representatives Committee on Regional Planning and Urban Development, Hon. Awaji-Inombek Abiante, emphasised the need for reliable, homegrown housing data, saying meaningful housing reforms could only be built on accurate information.

He assured that the National Assembly would support initiatives aimed at strengthening housing data, promoting orderly urban development and driving lasting reforms across the sector.

Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, also announced that the bank had completed the development of a National Mortgage Registry, a central digital repository for mortgage transactions across the country, saying it was ready for deployment following stakeholder engagement, data collection, cleansing and validation.

Meanwhile, the minister has expressed Nigeria’s readiness to deepen collaboration with Saudi Arabia in housing development, infrastructure investment and technology transfer as part of efforts to address the country’s huge housing deficit.

Darma stated this when he received the Ambassador of the Kingdom of Saudi Arabia to Nigeria, Yousef Bin Muhammad Al-Balawi, on a visit in Abuja, where discussions focused on attracting Saudi investment into Nigeria’s housing sector and participation in the Riyadh Real Estate Future Forum scheduled for January next year.

The minister described Nigeria as Africa’s largest country with enormous housing and infrastructure needs, stressing that strategic international partnerships remain critical to achieving the Federal Government’s Renewed Hope Agenda on affordable housing.

He said collaboration with countries that have demonstrated excellence in large-scale housing delivery, such as Saudi Arabia, would accelerate housing development, create jobs and improve access to decent homes for Nigerians.

According to him, the partnership would also encourage Saudi developers to invest in Nigeria’s housing market while strengthening long-standing diplomatic and economic relations between both countries.

In his remarks, Al-Balawi reaffirmed Saudi Arabia’s willingness to partner Nigeria in addressing its housing challenges, highlighting the achievements of the Kingdom’s government-backed National Housing Company in delivering large-scale housing projects.

He said Saudi Arabia was prepared to share its technical expertise, knowledge and best practices with Nigeria to support ongoing housing reforms, adding that the partnership could also create employment opportunities for qualified Nigerian professionals and skilled workers in housing and construction projects across the Kingdom.

The ambassador further expressed Saudi Arabia’s commitment to strengthening bilateral ties with Nigeria and expanding cooperation in areas of mutual interest.