Nigeria’s Housing Deficit: A Deepening Crisis

Nigeria’s housing deficit has reached a staggering 28 million units, marking a critical point in the nation’s ongoing struggle to provide adequate housing for its rapidly growing population. The recent discovery of makeshift apartments under Lagos bridges, where tenants pay N250,000 annually, has sparked public outrage and highlighted the urgency of the housing crisis. The Lagos state government responded swiftly by demolishing the makeshift structures and arresting those responsible, providing temporary relief. However, this incident underscores the severity and complexity of Nigeria’s housing shortage.

The housing deficit has been a persistent issue in Nigeria, with the number of needed units steadily rising over the years. In 1991, the deficit was 7 million units, and it increased to 12 million in 2007, 14 million in 2010, 20 million in 2018, and an estimated 28 million units in 2023. Despite numerous interventions by successive governments, the crisis has continued to escalate. Experts point to systemic issues, such as inadequate infrastructure, lack of affordable housing finance, and ineffective urban planning, as the root causes of the problem. The recent makeshift housing scandal in Lagos is a stark reminder of the dire living conditions faced by many Nigeria citizens and the urgent need for comprehensive housing solutions.

Renewed Hope: Housing and Estates Portal Interventions

In response to the deepening housing crisis, the Nigerian government has launched the Renewed Hope Housing and Estates Portal, aiming to provide a multifaceted approach to addressing the housing deficit. This initiative is designed to streamline the process of housing development, promote transparency, and facilitate access to affordable housing. By leveraging digital technology, the portal aims to connect prospective homeowners with developers, financiers, and policymakers, creating a more efficient and transparent housing market.

The Renewed Hope Housing and Estates Portal represents a significant step forward in tackling Nigeria’s housing challenges. The platform is expected to enhance the coordination between various stakeholders involved in housing development, including private sector players and government agencies.

This collaboration is crucial for addressing the complex issues that have hindered progress in the past. Furthermore, the portal’s emphasis on affordability and accessibility is intended to make housing solutions more inclusive, particularly for low- and middle-income families who are disproportionately affected by the housing shortage. As the government rolls out this initiative, it remains to be seen whether it will be able to make a substantial impact on reducing the housing deficit and improving living conditions for millions of Nigeria citizens

A Deeper Look at the Problem

The revelation of Nigeria’s housing deficit crisis presents a deeply concerning issue, gaining significant attention when analyzed from a statistical perspective. Segun Oshundiaro, the CEO of Arc-View Investments Limited, painted a grim picture through his incisive article: the housing deficit in Nigeria, which was 7 million units in 1991, surged to 12 million in 2007, 14 million in 2010, 20 million in 2018, and an alarming 28 million units by 2023. This escalating deficit underscores the severe and persistent nature of the crisis, despite numerous interventions by successive governments. Unfortunately, none of these efforts have successfully eradicated the crisis, leaving the nation in a perpetual state of housing inadequacy.

Experts continuously scrutinize the incoming administrations to assess their commitment to tackling the underlying issues. These root causes include an inefficient mortgage system, cumbersome property registration processes, and lack of investment in locally produced building materials. The inability to address these foundational problems has exacerbated the housing crisis, indicating that without significant reforms, the deficit will continue to grow. Therefore, the focus remains on whether the new government can implement effective strategies to mitigate these long-standing issues.

Experts’ Thoughts

Bayo Lawal, Co-Founder of Dukiya Limited, and Segun Oshundiaro offer critical insights into potential solutions for Nigeria’s housing crisis. Lawal emphasizes the need to restructure the mortgage system, streamline the property registration process, invest in locally manufactured building materials, and engage the private sector in providing loans and subsidies to builders. These measures, he argues, are essential to making housing more affordable and accessible to the average Nigerian.

Segun Oshundiaro concurs, adding that a review of existing land laws and simplification of land title processing are crucial steps. He also advocates for the development of a robust mortgage culture and the recognition of housing as a social investment. Both experts agree on the pivotal role of the government in creating a conducive environment for these changes. By addressing these areas, they believe the government can significantly reduce the housing deficit and position the sector for future success and prosperity.

Housing and Real Estates in Nigeria: A Renewed Hope

On February 8, 2024, President Bola Tinubu launched the Renewed Hope Cities and Estates Program, a nationwide initiative aimed at bridging the housing gap and making homeownership more accessible to average Nigerians. The program’s inaugural project, the construction of a 3,112-unit Renewed Hope City in Karsana, Abuja, officially began in February. During the launch, President Tinubu highlighted the fundamental importance of housing, asserting that it is a basic human right and a governmental responsibility.

Arc. Ahmed Musa Dangiwa, during the launch, assured the President of the plan to deliver 50,000 housing units across Nigeria under phase one of the program. These units will be strategically distributed, with 1,000 units per site in each of the six geopolitical zones and the Federal Capital Territory (FCT), and 500 units per site in the remaining thirty states. This ambitious plan aims to make significant strides in addressing the housing deficit by creating a more structured and comprehensive approach to housing development.

Online Portal to Streamline Home Sales

In a move to further address the housing crisis, the federal government launched an online portal designed to streamline the marketing and sales of houses under the Renewed Hope Cities and Estates Program. This initiative aims to integrate digital tools into the housing sector, promoting transparency, efficiency, and reducing administrative bottlenecks. Experts have long advocated for such technological advancements, arguing that they will expedite processes, reduce corruption, and ultimately make homeownership more accessible to Nigerians.

Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, unveiled the portal, emphasizing its role in fulfilling the government’s promise to eliminate barriers to homeownership. The platform is expected to facilitate the creation of technology systems and private sector-led initiatives, making it simpler, easier, and more convenient for Nigerians to purchase homes. While experts commend these efforts, they also stress the importance of addressing the fundamental issues that have long plagued the housing sector to ensure sustainable progress.