Experts under the International Real Estate Federation (FIABCI) have called for urgent adoption of integrated development frameworks, including Public-Private-People-Policy-Partnerships (5P), to address Nigeria’s worsening housing crisis.
The call was made by FIABCI Nigeria Chapter President, Akin Opatola, at the FIABCI Spring Symposium held at the United Nations headquarters in New York, where global real estate leaders and policymakers gathered to discuss housing challenges.
Housing Must Be Seen as Economic Infrastructure
Opatola urged policymakers to stop treating housing as a welfare issue, stressing that it is a core driver of economic participation, social stability, health outcomes, and human dignity.
He noted that Nigeria’s housing deficit currently stands at about 28 million units and could more than double by 2050 if urgent reforms are not implemented.
He added that over 60 per cent of urban residents already live in substandard or informal housing, reflecting a systemic crisis rather than a simple supply shortage.
Structural Failures Driving the Crisis
Opatola identified three major structural challenges: land administration, housing finance, and construction costs.
He criticised the Land Use Act of 1978, noting that over 90 per cent of land in Nigeria lacks formal title, making it unusable as collateral.
“No collateral means no mortgage. No mortgage means housing becomes a cash transaction available only to high-income earners,” he said.
He also highlighted Nigeria’s weak mortgage system, where penetration remains below 1 per cent of GDP and interest rates range between 25 and 30 per cent, making homeownership inaccessible for most citizens.
On construction, he pointed to import dependency, foreign exchange volatility, and infrastructure deficits as major cost drivers.
Government Efforts and Funding Gap
Opatola acknowledged ongoing government initiatives, including the Renewed Hope Cities and Estates Programme, targeting 50,000 housing units nationwide, with over 10,000 units currently under construction across 14 locations.
He also referenced the MOFI Real Estate Investment Fund, designed to expand mortgage access at reduced interest rates of about 9.75 per cent.
However, he warned that the 2025 housing budget of N11.5 billion for 20,000 units highlights a severe financing gap that limits large-scale impact.
Reform Agenda Proposed
To address the crisis, FIABCI called for:
- Digitisation of land administration systems
- Faster land title registration
- Introduction of strata title legislation for apartment ownership
- Tax incentives for mass housing developers
- Infrastructure support for housing estates
- Structured Public-Private partnerships that share risk
Opatola also urged global institutions such as UN-Habitat, World Bank, and IFC to support reforms and help mobilise pension funds into housing finance.
He stressed that Nigeria’s urban informality is not cultural but a result of long-standing policy failure.
Global Call for Collaboration
FIABCI World President, Antonio Campagnoli, noted that housing challenges are global, including affordability gaps, supply shortages, and policy misalignment.
He called for stronger 5P collaboration models where governments, private investors, institutions, and communities jointly develop scalable housing solutions.
Campagnoli also emphasised the need for better data and impact measurement in housing delivery, describing housing as critical social infrastructure that links financial sustainability with social outcomes.
