Housing crisis worry stakeholders as Lagos records 3.4m deficit

Stakeholders have continued to express concerns over Nigerians housing deficit which is currently estimated m at 20-28 million units. The housing deficit have remained the same for years, defying the efforts of successive administrations to provide affordable housing for both low and middle income citizens. With a current population of approximately 223 million and projections […]

Stakeholders have continued to express concerns over Nigerians housing deficit which is currently estimated m at 20-28 million units.

The housing deficit have remained the same for years, defying the efforts of successive administrations to provide affordable housing for both low and middle income citizens.

With a current population of approximately 223 million and projections by the World Bank estimating a rise to nearly 263 million by 2030 and over 400 million by mid-century, Nigeria is on a trajectory to become the third most populous nation globally.

Stakeholders worry that with the current exchange rates which has made import expensive, housing deficit may increase in the future.

Fx, high cost of building materials fueling deficit – deficit

In a chat with Daily Trust real estate expert, Abdulrahman Shehu, said inflation and high naira exchange rate continues to drive up the cost of building materials, most of which are imported.

He said, “This surge in prices has significantly undermined affordability, even for housing units intended to serve low- and middle-income earners.

“Despite the administration’s efforts, a general economic downturn and rising poverty levels across the country have reduced the purchasing power of many households. A large portion of the population now struggles to afford basic needs, let alone consider homeownership, which weakens the uptake of new housing projects.

“Although the Renewed Hope housing initiative is targeted at low-income earners, the actual pricing of many of the units, some costing over N30m, places them out of reach for the very demographic the programme seeks to serve. This disconnect between intent and execution threatens the overall success and credibility of the initiative.”

Similarly, a real estate expert Emmanuel Ogwuche noted that despite ongoing government housing, Nigerians sre grapling with as rising rents and a persistent housing deficit continue to strain urban residents.

He said, “The various policies introduced by the government to reduce the housing deficit are quite commendable; however, their impact has yet to be felt by the average person, as rent continues to soar in major cities. Despite the government’s efforts to bridge the housing gap through multiple policy initiatives, there has been no significant improvement in the overall housing deficit. This lack of tangible progress is evident in the steady increase in rental costs, particularly in urban areas, as frequently reported in the media.

“A quick win would be the adequate implementation and, most importantly, proper funding of various housing projects to ensure their timely completion. Across the country, numerous unoccupied and abandoned buildings can be found, and these structures should be immediately repurposed for residential use. To discourage property hoarding, higher taxes should be imposed on unoccupied buildings. Furthermore, the speedy delivery of planned housing units is important to addressing the housing deficit and meeting the needs of the growing population.”

A past president of the Nigerian Institute of Town Planners, TPL Steve Onu, criticised the planned 100 social housing units in each local government, stating that Nigeria’s approach to the housing crisis is not well thought out.

In the same vein, Onu told Daily Trust: “The country does not have a housing policy to address the housing needs of Nigerians. Rather, it is just giving out jobs to contractors.

“In the first place, I think the essence of the policy has not been thought out. There are critical questions that need to be answered: will people be willing to relocate to these houses from their ancestral homes? Has the federal government provided necessary infrastructure—such as electricity, water, and roads? What is the economic viability of these locations?”

He added that also, “Stakeholders have noticed that many Nigerians are unaware of these initiatives put together by the federal government, as such there is need for more Sensitization at the grassroots level, “ he said