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Housing

Nigeria's Housing Deficit: A Call for Affordable Mass Housing Production

Strategic Insights

— 1 min read

Nigeria's housing sector is struggling to cope with a staggering over 17 million housing deficit, posing a significant challenge to the government's efforts to bridge the gap. President and Chief Executive Officer of Fendini Group, Laja Adeoye, emphasizes the need for a strong and feasible housing policy to promote affordable mass housing production. The estimated cost to bridge this gap is put at N21 trillion, while the sector's contribution to the country's Gross Domestic Product (GDP) has been above 10 per cent within the past eight years.

Key Takeaways:

  • Nigeria's housing deficit stands at over 17 million units, with an estimated cost of N21 trillion to bridge the gap.
  • The housing sector contributes above 10 per cent to the country's GDP, making it a key driver for economic recovery and reduction of unemployment.
  • Identified causes of the housing deficit include rapid urbanisation, high construction costs, low mortgage access, and land acquisition bottlenecks.
  • Cities like Lagos, Abuja, and Port Harcourt are expanding faster than housing supply, making housing unaffordable for many Nigerians.
  • Cement prices have jumped over 30 per cent in two years, exacerbating housing unaffordability.
  • Less than 10 per cent of Nigerians can access mortgage financing, with a lengthy approval process delaying housing projects.
  • Fendini Group's Rayfield Gardens City Estate in Ibadan is a strategic Public-Private Partnership between the Oyo State Government and Fendini Group, featuring modern architecture, functional infrastructure, and sustainable living solutions.
  • Adeoye advocates for increased encouragement and use of local building materials to reduce housing costs.

Statistics:

  • Nigeria's housing deficit: over 17 million units (Federal Government)
  • Estimated cost to bridge the housing deficit: N21 trillion (estimated)
  • Contribution of housing sector to GDP: above 10 per cent in the past eight years
  • Cement price increase in two years: over 30 per cent (market survey)
  • Access to mortgage financing: less than 10 per cent of Nigerians (reportedly)

Sources:

  • [Fendini Group]
  • [Federal Government]
  • [Market survey]

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