By Kingsley Adegboye 

As Nigeria celebrates 64th independence anniversary, housing experts, led by the Housing Development Advocacy Network (HDAN), are calling for immediate action on pending housing and mortgage-related bills. According to Festus Adebayo, Executive Director of HDAN and Promoter of the Africa International Housing Show, no investor, local or foreign would commit to the sector without laws that guarantee security for their investments.

Providing affordable housing has also been a challenge not just due to legislative delays but also because of the high cost of building materials and a fragmented mortgage system. 

According to the experts, 

Nigeria at 64,  Nigeria’s housing sector remains a focal point of national concern. 

They noted that with a population exceeding 200 million, housing remains a fundamental need that continues to challenge both policymakers and private developers. 

They said despite the nation’s immense potential, the progress in providing affordable housing for its citizens has been slow, marred by a combination of legislative hurdles, economic constraints, and a rapidly growing urban population. 

This special report, they stated, examines the critical challenges, solutions, and achievements that have shaped the housing landscape in recent years.

“Nigeria faces an alarming housing deficit, estimated at over 28 million units (the figure has become a subject of argument because of no credible data), which continues to rise as urbanization accelerates. 

” With an annual population growth rate of about 2.6%, the demand for housing is outpacing supply. 

” Experts suggested that Nigeria needs to build at least 1 million new homes every year for the next 20 years to bridge the gap. “However, achieving this has been a daunting task due to various obstacles including the high cost of building materials, bureaucratic inefficiencies, and poor access to mortgage financing.

“Stakeholders argued that these challenges are not insurmountable, but they require urgent legislative and economic interventions. 

” One of the key issues is the failure to pass or amend critical housing-related bills that have been pending in the National Assembly for years. 

” These include the Land Use Act of 1978, the Federal Mortgage Bank of Nigeria (FMBN) Act, and several other bills that would create an enabling environment for investments in the real estate and mortgage sectors.

” The housing sector’s growth has been hampered by the slow passage of laws that are essential for the development of affordable housing and a viable mortgage system. 

” The National Housing Fund (NHF), which was set up to make housing accessible to the average Nigerian, has struggled to meet its objectives due to poor funding and inconsistent government policies.

” Stakeholders lamented that the absence of foreclosure laws has made it risky for developers to sell properties through mortgage or installment payments. As a result, housing projects aimed at the low and middle-income segments often stall or fail to meet their targets.

“They stressed that the macroeconomic environment has not been conducive to affordable housing. High inflation, high interest rates, and a lack of infrastructure are compounding the problem. “The scarcity of land, absence of infrastructure, and high cost of housing units are major factors preventing the realization of mass affordable housing in Nigeria,” Adebayo noted.

He said in a country like Kenya, over 500 billion is devoted to affordable housing but Nigeria cannot be proud of such an amount even half of it, it is therefore more of politics, a talk show about government plans without serious action.

He stated that another major issue has been policy inconsistencies, commonly referred to as policy summersaults, where successive administrations either abandon ongoing housing projects or introduce new policies that derail existing efforts. This has led to a lack of continuity in housing programs, undermining long-term planning and execution.

“To this day, some real estate developers continue to exploit subscribers without any law protecting the subscribers or regulations governing the activities of developers.” “This remains one of Nigeria’s significant challenges at 64, and it is an issue that demands urgent attention.” “Additionally, the Real Estate Developers Association of Nigeria (REDAN) must undergo professionalization if the government is truly committed to fulfilling the objectives for which it was originally established by the late Professor Akin Mabuguje.

” Looking back over the past six decades, Nigeria has launched several national development plans aimed at boosting housing.” However, the implementation has often been dismal. The Third National Development Plan (1975-1980), for instance, proposed the construction of 220,000 housing units, but only 15% of that target was achieved. 

” This pattern of underperformance has persisted, leaving millions of Nigerians without access to decent, affordable housing.

” Despite the challenges, in recent years, there have been some notable achievements in the housing sector. 

“The Family Homes Funds Limited, a government initiative aimed at addressing the housing deficit has made significant strides in delivering on its promise. 

” To date, FHFL has financed the construction of over 15,000 homes across Nigeria, making homeownership a reality for thousands of families.” “Through these housing projects, FHFL has created over 84,000 direct and indirect jobs. 

” The Federal Mortgage Bank of Nigeria (FMBN) since its re-establishment in 1993, has delivered about 39,000 new homes, about 25,500 mortgages, and over 120,000 micro-housing loans, all within a single-digit interest rate lending regime. Under the National Housing Fund (NHF) Scheme, it has registered 26,350 organizations and over 5.8 million cumulative contributors with over 1 million. 

“According to reports, the Bank has also disbursed a cumulative of N440 billion under its various loan windows to drive affordable housing finance for the Nigerian economy

Records show that the Federal Housing Authority (FHA) has only delivered a cumulative of just over 50,000 housing units, an average of 1,000 houses per year in its 50 years of existence. 

“However, the new leadership of the agency has promised to engage stakeholders and state governments to deliver more affordable housing units to meet the expectations of Nigerians.

” On its part, the Nigeria Mortgage Refinance Company (NMRC), in July 2015 successfully issued a 15-year N8 billion Series 1 Bond with coupon rate of 14.9% under its N440billion Medium Term Note Programme. By this act, NMRC made history as the first mortgage refinance facility in Africa to issue bonds to finance its operations. NMRC deployed the funds raised from the bond issue to the refinancing of the mortgage portfolios of its member banks. In May 2018, successfully completed an N11billion Series II Bond Issuance. “The order book was subscribed by over 200 percent. 

” To further boost liquidity in the country’s mortgage market, NMRC again in November 2020, successfully issued a N10 billion Series III Bond with a coupon rate of 7.2%; oversubscribed by 328%. “As of December 31, 2021 NMRC had refinanced mortgage to the tune of N30 billion. Recently, the Nigeria Mortgage Refinance Company Plc (NMRC) announced that it has secured $228 million in affordable mortgage financing for vulnerable earners and borrowers from a partnership involving the United States International Development Finance Corporation (DFC) for Affordable Mortgage Financing.

“In addition, several private developers and state governments have also made progress in delivering housing projects, particularly in urban areas. Iconic residential estates and innovative architectural designs are emerging in cities like Lagos and Abuja. 

“However, these developments cater mostly to the luxury market, leaving a significant gap in affordable housing for low-income earners.

” Even though some challenges still exists, the current administration, under the leadership of President Bola Ahmed Tinubu, is making significant strides in addressing the challenges in Nigeria’s housing sector. With the appointment of Arc. Ahmed Dangiwa as the Honourable Minister of Housing and Urban Development, and Alhaji Abdullahi Tijanni Gwarzo as the Minister of State, the government has demonstrated a commitment to effect meaningful change in the housing landscape. 

“Minister Dangiwa immediately set to work on what he described as long-overdue reforms aimed at strengthening the sector. His action plan for 2023–2027 includes several strategic initiatives, such as reforming federal housing institutions to enhance their efficiency, increasing the stock of affordable housing, and streamlining land administration through collaboration with the National Assembly and state governments. 

“The ministry has also been focused on improving urban living conditions by expanding the National Urban Renewal and Slum Upgrade Programme and has laid the groundwork for the creation of a National Social Housing Fund to provide access to housing for low-income earners, including internally displaced persons (IDPs).

In the first year of the Tinubu administration, substantial progress has been recorded, starting with the formation of four housing reform task teams, which have been working to produce blueprints aimed at addressing key issues in the sector, from land administration to multi-agency collaboration. “The teams’ reports are expected to shape policies moving forward into the second year of the administration.

” One of the most visible achievements of the administration is the Renewed Hope Cities and Estates Programme, which aims to deliver 6,612 housing units across 13 locations nationwide. This initiative, which is currently in progress, includes both affordable and higher-end housing units. 

“Some locations, such as Karsana in Abuja, are being developed under a Public-Private Partnership (PPP), while others are funded by the supplementary budget of 2023. 

” The housing units range from one-bedroom flats to five-bedroom duplexes, and the programme includes options such as rent-to-own, mortgage loans with up to 30-year repayment terms, and outright purchases, making homeownership accessible to Nigerians from various income brackets.

“The projects, spread across all six geopolitical zones, are not only providing homes but also generating employment.” “With each unit creating an average of 25 jobs, the 6,612 units are employing over 165,000 skilled and unskilled workers, in addition to the numerous opportunities in the supply chain for building materials and other services.

” To streamline the process of homeownership, the Ministry launched the Renewed Hope Online Housing Portal, where interested Nigerians can apply for homes. The platform has already attracted over 47,000 registrants, both locally and internationally, and has recorded a surge in visits, reflecting the high demand for affordable housing.

“In addition to housing construction, the government has expanded its urban renewal and slum upgrade efforts. Under Phase 1 of the programme, projects are being carried out in 26 locations across the country, with key services such as water supply, solar streetlights, and road rehabilitation being provided to improve living conditions in underserved areas. 

“The administration has also taken steps to address lingering issues with housing units developed under the National Housing Programme by offering various ownership options, ranging from outright payment to mortgage and rent-to-own.

” Almost 9,000 expressions of interest have been received, and successful applicants are already receiving allocation letters.

Efforts to establish a National Social Housing Fund (NSHF) are also underway, which is intended to ensure that all Nigerians, particularly vulnerable and low-income groups, have access to decent housing. 

“The framework for this initiative is currently being developed, signaling the government’s commitment to closing the housing gap.

” Land reforms have also been a key focus, with the Ministry exploring partnerships with the World Bank for a National Land Titling Programme.” “This initiative aims to improve land formalization from the current rate of less than 10% to 50% over the next decade. The digital Federal Land Information System (FELIS) is also being enhanced to centralize federal land records.

In a bold move to resolve the long-standing issue of conflicting housing deficit figures, the government adopted some of the resolutions by stakeholders at the 18th Africa International Housing Show as Dangiwa inaugurated the Joint Steering Committee on National Housing Data. “This committee, composed of representatives from various housing and data institutions, is tasked with developing a transparent and accessible housing data system to support policy and decision-making.

” Looking ahead, the Ministry plans to begin groundbreaking for 2,000 housing units in Lagos and 1,500 units in Kano, with additional projects planned for Enugu, Borno, Nasarawa, and Rivers. 

” The administration is also exploring various financing options, including a partnership with Shelter Afrique Development (ShafDB), which will help finance 5,000 housing units in the first phase of the collaboration.

” Despite these achievements, stakeholders have called for increased budgetary allocation to the housing sector annually to sustain and expand the various affordable housing projects of the government. 

” With these efforts, the Tinubu administration is taking decisive steps to not only address Nigeria’s housing deficit but to build a more inclusive and sustainable housing sector for all Nigerians.

” What are the solutions and the way forward? To truly address Nigeria’s housing crisis, stakeholders have outlined several key steps that need to be taken:

1. Legislative Reform: The immediate passage of pending housing and mortgage-related bills is crucial. These laws will not only secure investments but also establish a framework for a functional mortgage system that can make homeownership more accessible to ordinary Nigerians.

2. Land Access and Infrastructure Development: The government needs to simplify the process of acquiring buildable land and invest in the infrastructure that supports housing development. The Land Use Act, which has been a major barrier to land access, requires urgent reform.

3. Mortgage Financing: Developing a robust secondary mortgage market is essential for affordable housing. This includes creating special mortgage products for low-income earners and expanding access to mortgage loans through cooperative societies and public-private partnerships.

4. Public-Private Partnerships: Engaging the private sector in housing delivery through incentives such as tax breaks and reduced interest rates on construction loans can stimulate growth in the sector.

5. Sustainable Housing Policies: Long-term housing policies that are immune to political changes must be established to ensure continuity and consistent funding. This will also attract more foreign direct investment into the sector.

“A new beginning as Nigeria marks its 64th anniversary, the focus must shift from lamenting past failures to taking concrete actions that will ensure every Nigerian has access to decent and affordable housing. 

” The housing sector holds enormous potential to contribute to the country’s GDP, create jobs, and improve the standard of living for millions of citizens.” 

According to Festus Adebayo, “The next step is for Nigeria to pick itself up and do what’s right. Passing the necessary bills into law is one of the critical actions needed to create an enabling environment for housing development.”

He pointed out that at 64, Nigeria still has a long way to go in fulfilling its promise of affordable housing for all. 

He however noted that, with the right legislative framework, consistent policies, and collaborative efforts between the public and private sectors, the dream of housing for all can become a reality.