PropTech in Nigeria: How Technology Is Changing Real Estate Investment

Nigeria’s real estate sector continues to attract interest, but rising property prices, increasing construction costs and the substantial capital required to purchase property have made direct ownership difficult for many people.

Property technology, commonly known as PropTech, is creating alternative ways to participate in the market. One example is fractional real estate investment, which allows multiple investors to contribute towards a property rather than having to purchase the entire asset individually.

Although this model can lower the financial barrier to entry, it also raises important legal questions. When does a property investment arrangement become a regulated financial product, and what responsibilities do the businesses operating these platforms have?

These questions are particularly important under Nigeria’s Investments and Securities Act, 2025 (ISA), which provides a framework for regulating investment activities and protecting investors.

What Is PropTech?

PropTech refers to the use of technology to improve how real estate is developed, marketed, financed, bought, sold, leased and managed.

It includes digital property marketplaces, online transaction platforms, property management software and technology-enabled investment services.

Fractional real estate investment is one of the models supported by these developments. It allows several people to participate financially in a single property or real estate project, with each investor holding an interest according to the legal structure of the arrangement.

Pooling resources to acquire property is not a new idea. Individuals have long combined their funds to purchase and manage real estate. Technology has changed how these arrangements can be organised, promoted and administered.

Previously, coordinating several property investors could involve extensive paperwork, significant administrative costs and difficulties monitoring contributions and investment performance.

Digital platforms can simplify these processes, improve record-keeping and make investment opportunities easier to distribute to potential participants.

However, fractional real estate arrangements do not all have the same legal structure. Depending on the arrangement, investors may own direct interests in a property, hold shares in a company established to acquire the asset, or participate through a trust or another recognised investment vehicle.

The distinction is important because the legal rights of investors and the regulatory obligations of the platform may differ according to the structure used.

Understanding the Regulatory Requirements

Making property investment more accessible does not remove the legal obligations associated with raising and managing money from investors.

Depending on how an arrangement is structured, several laws may apply, including the Investments and Securities Act, 2025, the Land Use Act, 1978, the Companies and Allied Matters Act, 2020, the Nigeria Data Protection Act, 2023, and the Money Laundering (Prevention and Prohibition) Act, 2022.

These laws address different aspects of property ownership, corporate operations, investment regulation, personal data protection and financial crime prevention.

Consequently, PropTech operators must look beyond the technology used to offer their services. They also need to consider the legal nature of the investments they promote, the rights granted to participants and the obligations arising from their business models.

Investors, in turn, need to understand what they are purchasing and whether the relevant platform and investment arrangement meet applicable legal requirements.

SEC Oversight and the Investments and Securities Act

The Securities and Exchange Commission (SEC) regulates Nigeria’s capital market and has responsibilities relating to investor protection and the maintenance of fair, efficient and transparent markets.

Under the ISA, the regulatory treatment of a PropTech investment depends significantly on the arrangement’s actual structure and activities.

For example, a platform that collects money from members of the public to invest in property and promises returns may raise different regulatory considerations from a straightforward arrangement in which two people jointly purchase a plot of land.

The label attached to an investment product does not, by itself, determine its legal status. The underlying rights, financial arrangements and manner in which funds are collected and managed are important factors.

For businesses developing digital property investment products, assessing these questions early can help identify the registrations, disclosures and other compliance measures that may be required.

When Does Fractional Property Investment Become a Collective Investment Scheme?

A collective investment scheme (CIS) is one of the regulatory categories relevant to fractional real estate.

The ISA addresses arrangements in which investors contribute money or other assets to participate in a portfolio, with those contributions pooled and managed collectively.

Where an arrangement meets the statutory definition of a CIS, it falls within the SEC’s regulatory framework.

However, not every fractional ownership arrangement automatically qualifies as a collective investment scheme.

For example, two individuals who directly purchase a plot of land together may simply be co-owners. If they each acquire a direct interest in the property and the arrangement does not involve the relevant features of a regulated collective investment scheme, the legal treatment may differ from a platform that pools public funds and professionally manages a portfolio of properties.

The distinction depends on the facts and legal structure of each arrangement. Businesses should not assume that every co-ownership model is regulated in the same way, nor should they assume that calling an investment fractional ownership exempts it from regulation.

Raising Money Through Shares and Other Securities

The ISA also provides frameworks for raising investment capital through securities connected to real estate and property development.

Depending on the structure, a company may issue shares or other permitted investment instruments that provide investors with financial rights associated with a property project or business.

Real estate investment trusts and other recognised structures can also enable multiple investors to participate in property-related investments and potentially benefit from rental income or changes in asset value.

These arrangements are legally distinct from one another. Buying shares in a company that owns property does not necessarily give a shareholder direct ownership of a specific property. The investor’s rights depend on the company’s structure, the relevant agreements and the securities acquired.

Where an investment product falls within the ISA’s provisions, the applicable registration, authorisation, disclosure and other regulatory requirements must be considered.

The law’s provisions concerning securities and property-related fundraising are therefore important for companies seeking to attract capital through digital platforms.

When Does an Investment Offer Become Public?

Another important consideration is whether a fundraising activity constitutes an invitation to the public.

The ISA establishes rules governing public offers of securities and the requirements that may apply, including prospectus-related obligations.

Offers distributed through mass media, websites or electronic channels may fall within the relevant provisions. The law also addresses offers circulated to particular groups and the distribution of application forms in connection with securities.

However, the statutory framework includes provisions concerning private arrangements that are not intended to make an investment available beyond the group originally approached.

The exact treatment depends on the circumstances and the applicable statutory conditions. Simply limiting access to a website or circulating an offer to a selected group does not necessarily establish that an arrangement is exempt.

PropTech operators planning to advertise investment opportunities online should therefore assess the legal implications of their marketing methods before inviting people to contribute money.

What PropTech Businesses Need to Consider

For developers, founders and operators of digital real estate platforms, regulatory compliance should be considered when designing an investment product, rather than postponed until after money has been raised.

Businesses should understand the legal structure of the product, the rights investors receive, how funds will be held and managed, and whether the activity requires regulatory registration or approval.

They should also establish appropriate documentation, disclosures and procedures for communicating investment risks.

These steps can help reduce the risk of disputes and regulatory problems as the business grows.

The specific requirements will depend on the business model and the laws applicable to its activities. Professional legal advice is therefore important before launching or expanding an investment platform.

What Investors Should Check Before Committing Funds

Digital platforms can make property opportunities easier to discover, but convenience should not replace due diligence.

Before investing, prospective participants should establish who legally owns the underlying property, what rights the investment provides and how the arrangement is structured.

They should also understand how returns are expected to be generated, what fees may apply, how and when funds can be withdrawn or an investment sold, and what risks could lead to losses.

Investors should verify relevant property documentation and investigate whether the platform and investment product comply with applicable regulatory requirements.

They should not assume that an advertised return is guaranteed or that a digital platform’s presence online establishes the legitimacy of its offering.

Careful examination of the investment documents, ownership arrangements and applicable regulatory status can help investors make better-informed decisions.

Conclusion

Fractional real estate investment has existed in different forms for generations. PropTech has changed how these arrangements can be organised, managed and offered to potential investors, creating opportunities for wider participation in the property market.

However, technology does not remove the legal principles governing property ownership, fundraising and investment regulation.

The legal and regulatory treatment of an investment depends on its substance, rather than the terminology used to describe it. An arrangement promoted as fractional property ownership may still fall within securities regulation if its actual features meet the relevant statutory requirements.

For PropTech businesses, sustainable growth requires more than developing an accessible digital platform. It also requires an appropriate legal structure, clear investor rights and compliance with applicable regulations from the outset.

For prospective investors, understanding the ownership model, expected returns, risks and regulatory position is essential before committing capital.

As Nigeria’s real estate sector becomes more technology-driven, sound due diligence and effective compliance will remain important to building trust and supporting responsible investment.

Disclaimer

This article is intended for general educational purposes only and does not constitute legal or other professional advice. The regulatory treatment of a particular investment depends on its specific circumstances and applicable law. Investors and businesses should seek qualified professional advice before making investment or compliance decisions.

Source: Nigeria Housing Market, PropTech in Nigeria: An Investor’s Introductory Guide.

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Akwa Ibom Housing Projects Reach 1,048 Units Across Six Locations

The Akwa Ibom State Government has acquired and earmarked about 150 hectares of land across six locations for housing development, with 1,048 housing units currently at various stages of completion and delivery.

The Commissioner for Housing, Dr Henry Archibong, disclosed this during a ministerial media briefing, explaining that the state’s housing programme under Governor Umo Eno is focused not only on constructing homes but also on developing affordable, sustainable and economically viable communities.

According to Archibong, the housing programme is aligned with the administration’s ARISE Agenda and the United Nations Sustainable Development Goal 11, which promotes inclusive, safe, resilient and sustainable cities and communities.

He said the ministry’s vision was to become a model institution for effective service delivery by promoting operational efficiency and making optimal use of resources to provide decent, quality and affordable housing.

The commissioner explained that the statutory responsibilities of the Ministry of Housing include formulating and implementing policies for the design, construction and maintenance of public buildings, developing residential housing policies, vetting and approving building drawings, valuing buildings for government purposes and managing state-owned properties in Uyo, Lagos, Abuja and other parts of the country.

Key housing projects across the state

Archibong identified several major housing projects being implemented by the state government, including Aviation Village Phase 1, Doctors’ Residence at Ibom Medical City, Executive and Legislative Quarters, Judiciary Quarters and the ARISE City Social and Affordable Housing Estate.

The Aviation Village Phase 1 occupies about 15.072 square metres of fenced land and comprises 100 housing units, made up of 50 two-bedroom and 50 three-bedroom apartments.

The project is 98 per cent complete.

Five of the units have already been allocated to the Ministry of Aviation to accommodate officials and visitors from the Federal Ministry of Aviation involved in project supervision.

The estate also has a model primary school, a 70,000-litre water facility with reticulation, a 7.13-kilometre road network, electricity infrastructure, a police station and a solar-powered closed-circuit television system.

Archibong said Governor Eno had directed that a secondary school be included in the second phase of the development.

At Ibom Medical City, the Doctors’ Residence covers 11.8 hectares and comprises 50 three-bedroom bungalows and 50 four-bedroom terrace duplexes.

The development also includes a model school and recreational facilities and is currently about 70 per cent complete.

The Judiciary Quarters, located along Idongesit Nkanga Avenue, Ring Road 3, occupies 6.3 hectares.

The project consists of 50 four-bedroom duplexes, each with two boys’ quarters, as well as a recreational centre and conference hall. It is also about 70 per cent complete.

Other housing interventions

The commissioner also listed several other housing interventions being undertaken by the administration.

These include the 500 ARISE Compassionate Homes programme, of which 438 units have been completed and delivered.

The government has also developed 236 units of flats at Grace Estate, with 150 of the units allocated to civil servants.

Other projects include 35 duplex units at Ewet Luxury Garden and 31 residences for local government chairmen, which are currently under construction.

Earlier reports from the state government had also put the total number of housing units delivered or under development at more than 1,048, including the Compassionate Homes, Grace Estate, Aviation Village, Medical Residences, government quarters, Ewet Luxury Garden and local government chairmen’s residences.

Housing projects create jobs

Archibong said the housing programme was also contributing to economic activity across the state.

According to him, between 5,000 and 6,000 people are benefiting directly and indirectly from the projects through employment and related services.

He said artisans and labourers working on the projects earn between N7,000 and N12,000 daily.

“Housing is both a social intervention and an economic development tool. It is the single most important facilitator of economic growth,” Archibong said.

The commissioner explained that the impact of the projects extended beyond the provision of accommodation because construction activities were generating employment and supporting businesses involved in building materials, transportation, skilled labour and other ancillary services.

Government plans facelift for Ewet Housing Estate

Archibong also disclosed that Governor Eno had constituted a committee to assess the Ewet Housing Estate and recommend measures to improve its physical condition and security architecture.

He said the committee had completed its assessment and submitted its report to the government.

The intervention is expected to address concerns around the estate’s infrastructure and security while improving the overall living environment for residents.

Government seeks stronger housing partnerships

Despite the number of projects underway, Archibong acknowledged that the state still faced a significant housing deficit.

He said government could not address the challenge alone and would therefore continue to strengthen collaboration with mortgage institutions, professional bodies and private developers.

The partnerships are expected to improve access to housing finance and support the expansion of affordable housing supply across the state.

The commissioner said the government’s approach was to combine public-sector housing interventions with private-sector participation and stronger financing mechanisms to reach more residents.

The state’s housing programme forms part of the wider ARISE Agenda, with the government positioning housing development as both a social welfare intervention and a means of stimulating economic activity.

With about 150 hectares earmarked across six locations and 1,048 housing units at various stages of development or delivery, the administration is continuing to expand its housing programme while seeking additional partnerships to address the state’s housing needs.

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ShafDB Launches FCFA60bn Bond to Finance Affordable Housing in West Africa

Shelter Afrique Development Bank (ShafDB) has launched a FCFA60 billion sustainable bond, equivalent to about $100 million, to mobilise local-currency funding for affordable and sustainable housing projects across the West African Economic and Monetary Union (WAEMU) region.

The issuance, launched on October 7, 2026, is the development bank’s first sustainable bond and is intended to expand access to long-term financing for housing projects while strengthening the use of local capital markets in West Africa.

The transaction is being arranged by CGF Bourse Dakar as Lead Arranger, with the International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, serving as anchor investors.

The bond is structured in two tranches. The five-year tranche carries an interest rate of 6.10 per cent, while the seven-year tranche has a rate of 6.30 per cent. The subscription period runs from October 7 to October 30, 2026.

ShafDB Director of Treasury, Nabil Mahfoudh, said the transaction was designed not only to raise capital but also to create a more diversified and resilient financing platform for housing and urban development across Africa.

He said expanding the bank’s presence in West African capital markets would help connect local savings with housing and urban development needs while allowing financing to be provided in the same currency in which local developers generate their income.

Focus on local-currency housing finance

The bond comes as the WAEMU housing market continues to face a significant housing deficit. Estimates cited in the announcement put the regional shortfall at about 3.5 million housing units, with nearly 250,000 additional homes needed each year to keep pace with population growth and urbanisation.

ShafDB said the proceeds are expected to support affordable, sustainable and energy-efficient housing projects in the region.

The bank also highlighted the importance of financing projects in local currency. By matching the currency of project financing with the currency in which housing projects generate revenue, developers can reduce their exposure to foreign-exchange risks, particularly for medium- and long-term investments.

The approach is intended to strengthen the connection between local capital markets and the housing sector while improving the availability of long-term funding for developers and housing-related projects.

Sustainable financing framework

In preparation for the issuance, ShafDB worked with the Global Green Growth Institute (GGGI) to develop and publish its Sustainable Financing Framework.

The framework received a favourable opinion from S&P Global, which the bank said strengthened the credibility and transparency of its sustainable finance approach and its alignment with applicable principles for green and social financial instruments.

The transaction also received regulatory approval from the Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), marking another step in the launch of the bond.

Mobilising African savings

The bond issuance forms part of wider efforts under the New African Financial Architecture for Development (NAFAD), as reflected in the Abidjan Consensus, to increase the mobilisation of African savings and deepen capital markets across the continent.

The initiative seeks to encourage greater use of domestic and regional resources to finance Africa’s development priorities, including affordable housing, urban infrastructure and sustainable development.

ShafDB has previously accessed African capital markets through multiple bond issuances. The development bank said it has completed 11 bond issuances across different African markets.

Its most recent issuance took place in Nigeria in April 2022, when it raised N46 billion, equivalent to approximately $110 million at the time.

The bank said its latest transaction reinforces its intention to play a larger role in mobilising African capital for housing and urban development.

ShafDB is a pan-African multilateral development bank focused on financing housing, urban development and related infrastructure. It operates across 44 African shareholder countries and provides financing and advisory solutions covering areas including mortgage finance, housing microfinance, housing funds, mortgage refinancing and rent-to-own markets.

Through the FCFA60 billion sustainable bond, the institution is seeking to expand local-currency financing for housing in West Africa while supporting projects that combine affordability, sustainability and energy efficiency.

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President John Dramani Mahama is expected to open Ghana’s two-day National Conference on Housing Finance in Accra on October 7, with stakeholders set to examine innovative financing mechanisms for expanding access to adequate and affordable housing.

The conference, organised by the National Homeownership Fund (NHF), will be held under the theme, “Adequate Housing for All: Innovative Financing for Ghana’s Housing Future.”

Mahama, who is the Guest of Honour, is expected to deliver the keynote address at the opening session of the conference.

The event will bring together representatives from government, financial institutions, the private sector, development institutions, civil society, academia and local government to discuss the challenges affecting housing finance in Ghana.

The conference comes amid persistent difficulties in Ghana’s housing sector, including rising construction costs, limited access to long-term financing, high mortgage rates and affordability constraints.

According to the National Homeownership Fund, these challenges continue to prevent many households from accessing adequate housing.

The two-day event will therefore focus on how capital can be mobilised and deployed more effectively to increase housing opportunities, particularly for low- and middle-income households.

Participants are also expected to examine the current state of Ghana’s housing finance ecosystem and consider financing models that could improve access to sustainable and affordable housing.

Stakeholders to examine housing finance reforms

The conference is being organised in collaboration with the Ministry of Finance, the Ministry of Works, Housing and Water Resources, the Ministry of Local Government, Chieftaincy and Religious Affairs, the Bank of Ghana and Shelter Afrique Development Bank.

Financial institutions, labour unions and private-sector stakeholders are also expected to participate in the discussions.

The organisers said the conference would seek to move the housing finance conversation beyond policy discussions by identifying practical financing solutions, institutional reforms and partnerships that could support Ghana’s housing sector.

The event is expected to end with a policy outcomes communiqué containing recommendations to guide housing policy, implementation and resource mobilisation.

Focus on affordable housing finance

The conference forms part of activities marking World Habitat Day 2026, which highlights the condition of human settlements and the importance of adequate housing to inclusive and sustainable development.

The National Homeownership Fund said the conference reflects Ghana’s effort to strengthen the systems, institutions and financing mechanisms needed to make adequate and affordable housing more accessible.

The Fund, a government-backed housing finance institution, was established to support affordable homeownership and contribute to the development of Ghana’s housing finance ecosystem.

Through partnerships with government institutions, financial institutions, housing developers and other stakeholders, the NHF seeks to develop sustainable financing solutions that can make homeownership more accessible to Ghanaians.

Housing finance challenges

Earlier in September, NHF Chief Executive Officer Prosper Hoetu said the conference would focus on structural barriers that have limited access to decent and affordable housing, particularly for low- and middle-income households.

The 2024 Ghana Housing Profile estimated the country’s housing deficit at approximately 1.8 million units, while more than 30 per cent of the existing housing stock was considered inadequate.

Hoetu said only about five per cent of Ghanaians could independently afford a home, while 60 per cent required some form of government assistance and 35 per cent required social housing.

He identified limited access to long-term financing, high interest rates, short loan tenures, land administration challenges and inefficiencies in housing delivery as major barriers to homeownership.

According to him, Ghana’s mortgage-to-GDP ratio remained below 0.3 per cent, while mortgage interest rates often exceeded 30 per cent, making formal housing finance difficult for many low- and middle-income households to access.

The conference is consequently expected to examine measures including reducing mortgage rates, extending loan tenures, developing local-currency mortgage products, expanding access to finance for informal-sector workers and attracting long-term capital into the housing market.

Construction and green housing also on agenda

Discussions will also cover financing challenges facing housing developers, including high borrowing costs, limited access to long-term capital, difficulties with land titling and perceived project risks.

Four thematic panel discussions are expected to focus on mortgage financing, construction financing, climate and green housing, and informal and social housing.

An exhibition will also provide an opportunity for financial institutions, developers, technology providers and development partners to showcase housing finance products, green-building technologies and affordable housing projects.

The NHF expects the conference to produce shared commitments, new or revised affordable housing loan products, a technical working group on green affordable housing finance and a roadmap for operationalising its homebuyer database and offtake guarantee framework.

A follow-up review of the outcomes is scheduled for the first quarter of 2027.

The conference is therefore expected to place housing finance at the centre of discussions on Ghana’s efforts to expand housing supply and improve access to homeownership for households across different income groups.

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The Federal Government and Ahmadu Bello University (ABU), Zaria, have called for innovative approaches to tackle Nigeria’s housing deficit through affordable, inclusive and sustainable communities.

The call was made at the 2026 World Habitat Day celebration held at ABU, Zaria, under the theme, “Adequate Housing for All.”

Speaking at the event, the Minister of Housing and Urban Development, Dr Motoka Daruma, said the government was committed to expanding access to adequate housing while developing inclusive, resilient and sustainable cities.

Daruma, represented by Mr Danbaba Yahaya, said adequate housing must go beyond providing shelter to guarantee security, dignity, affordability, infrastructure and access to essential services.

FG Highlights Renewed Hope Housing Initiatives

The minister said rapid urbanisation, housing shortages, rising construction costs and infrastructure deficits required coordinated interventions to address Nigeria’s growing housing needs.

According to him, the administration of President Bola Ahmed Tinubu is implementing its Renewed Hope Agenda through initiatives including Renewed Hope Cities, Renewed Hope Estates and social housing programmes.

He said the initiatives were designed to increase housing supply, complete ongoing projects, provide supporting infrastructure and social amenities, and improve access to mortgage finance.

Daruma added that the government was exploring innovative financing mechanisms to help more Nigerians, including people in the informal sector and members of the diaspora, access decent and affordable housing.

He also said reforms in land titling, registration, documentation and digitalisation were being pursued to strengthen security of tenure, attract investment and improve land administration.

Government Promotes Local Building Materials

The minister said the government was promoting local production of building materials across Nigeria’s six geopolitical zones.

According to him, the initiative is aimed at reducing construction costs, creating jobs and strengthening domestic manufacturing.

He said the interventions were guided by the National Urban Development Policy 2025, which seeks to promote inclusive, resilient, productive and sustainable cities across the country.

ABU Offers Research Support

In his welcome address, ABU Vice-Chancellor, Prof. Adamu Ahmed, represented by the Deputy Vice-Chancellor, Administration, Prof. Bello Sabo, pledged the university’s research and professional expertise to addressing Nigeria’s housing challenges.

Ahmed said ABU would focus on developing and commercialising locally sourced, climate-resilient building materials.

The university would also generate spatial data for urban planning and land administration while training professionals to respond to emerging challenges.

He said ABU intended to position itself as an active catalyst for addressing Nigeria’s housing crisis rather than treating the issue solely as an academic subject.

The vice-chancellor urged private developers, manufacturers and financial institutions to partner with university laboratories to test, standardise and scale affordable and environmentally friendly building technologies suited to Nigeria’s climate and soil conditions.

Stakeholders Call For Sustainable Communities

Former ABU Vice-Chancellor, Prof. Shehu-Usman Abdullahi, represented by former IBB University Vice-Chancellor, Prof. A.K. Adamu, urged stakeholders to shift their focus from simply constructing houses to developing sustainable communities.

Abdullahi said adequate housing must be complemented by security of tenure, infrastructure, transportation, healthcare, education, employment opportunities, public spaces and a healthy environment.

He said rapid urbanisation and population growth had intensified challenges around housing affordability, land administration, infrastructure, transportation, environmental sustainability and urban governance.

He called for inclusive housing policies and innovative financing mechanisms that address the needs of low-income households, students, young families, persons with disabilities and other vulnerable groups.

The speakers agreed that tackling Nigeria’s housing deficit would require sustained collaboration among government, academia, the private sector, professional bodies, communities and development partners.

They also stressed that the quality of Nigeria’s housing and urban settlements would have significant implications for social stability, economic resilience and citizens’ quality of life.

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Lagos State Governor Babajide Sanwo-Olu has said addressing the state’s housing deficit requires more than constructing additional homes, stressing the importance of affordability, accessibility and essential services.

Sanwo-Olu stated this in a keynote address delivered by the Commissioner for Housing, Moruf Akinderu-Fatai, at the 2026 World Habitat Day celebration in Lagos on Monday.

The event was held under the theme, “Adequate Housing for All.”

The governor said the existence of a building alone does not necessarily amount to adequate housing, noting that proper accommodation must provide security, affordability, accessibility and basic services.

Lagos Delivers 10,623 Housing Units

Sanwo-Olu said the Lagos State Government had provided 10,623 housing units through direct budgetary allocations and public-private partnerships since 2019.

According to him, 23 housing estates have been completed across the five divisions of the state.

He, however, acknowledged that the figure represents only part of the broader response required to address Lagos’ housing needs.

The governor said the government was also expanding opportunities for home ownership through initiatives such as the Rent-to-Own scheme and Lagos HOMS.

He added that five housing projects currently under construction would provide an additional 1,584 homes.

Governor Links Housing To Roads, Water, Drainage

Sanwo-Olu stressed that infrastructure surrounding residential communities is an essential component of adequate housing.

He listed roads, drainage, electricity and water supply among the services required to support functional residential communities.

The governor also said the state was pursuing tenancy reforms aimed at protecting residents from arbitrary rent increases and unlawful charges.

He urged developers, financial institutions, planning professionals, traditional rulers, community leaders and other stakeholders to contribute to the development of safe and sustainable communities.

Sanwo-Olu also advised residents to comply with physical planning regulations, warning that buildings constructed without the required approvals could pose risks to occupants and neighbouring communities.

Lagos Population Growth Puts Pressure On Housing

Commissioner for Physical Planning and Urban Development, Dr Oluyinka Olumide, said adequate housing was closely connected to transportation, employment, security, healthcare, education, water supply, sanitation and effective urban planning.

Olumide said Lagos’ rapid population growth had increased pressure on land, housing and other urban services.

He called for stronger coordination among government agencies, private developers, financial institutions, professional organisations, communities and other stakeholders.

Festus Adebayo Calls For Affordable Housing

The Founder and Convener of the Africa International Housing Show, Festus Adebayo, described the high cost of housing as both an economic and social challenge.

Adebayo said many young graduates and working families were spending significant portions of their incomes on rent and transportation, limiting their ability to save, invest or purchase homes.

He argued that the housing debate should consider not only the number of available houses but also whether residents could afford and access them.

Adebayo also noted that some residential properties across Nigeria remained vacant while many families continued to struggle to secure decent accommodation.

He advocated improved access to land and housing finance, alongside stronger cooperation between government and private-sector stakeholders.

Town Planners Seek Stronger Collaboration

In a goodwill message, Chairman of the Nigerian Institute of Town Planners, David Olawale, said sustainable housing depended on effective urban planning and collaboration between government and professional bodies.

Olawale referenced Sustainable Development Goal 11, which promotes inclusive, safe, resilient and sustainable cities and human settlements.

The General Manager of the Lagos Informal Space Management Authority, Daisi Oso, said World Habitat Day should be viewed beyond the construction of houses.

She stressed the need to develop communities that are safe, peaceful, accessible and sustainable.

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More Nigerian workers are turning to their pension savings to raise equity contributions for residential homeownership as rising property costs and declining purchasing power make it increasingly difficult to buy homes.

Data from the National Pension Commission (PenCom), as reported by Financial Vanguard, showed that 28,437 pension contributors accessed their Retirement Savings Accounts (RSAs) for homeownership equity contributions in the first quarter of 2026.

The figure represents a 284.3 per cent increase from the 7,399 contributors who accessed their pension savings for the same purpose in the fourth quarter of 2025.

The amount withdrawn also increased sharply. A total of N92.7bn was accessed from the contributors’ RSAs for residential homeownership equity contributions in Q1 2026, compared with N28.27bn in Q4 2025.

That represents a 227.9 per cent increase in the value of pension savings accessed within one quarter.

The increase in both the number of contributors and the amount accessed highlights the growing role of pension savings in helping workers meet the upfront financial requirements for homeownership.

It also reflects the widening gap between household incomes and the cost of residential property, particularly as rents, construction costs and mortgage-related expenses continue to rise.

Nigeria’s housing deficit was estimated in the report at 14.9 million units, while experts put the funding requirement for bridging the gap at about N21tn.

Despite the existence of the National Housing Fund (NHF), which was established as a financing mechanism to improve access to housing finance, stakeholders continue to raise concerns about workers’ ability to access loans through the scheme.

How pension savings can support homeownership

Under the Contributory Pension Scheme (CPS), eligible Retirement Savings Account holders can access up to 25 per cent of their RSA balances as equity contributions for residential mortgage financing.

The provision applies to active RSA holders who have contributed to the CPS for at least 60 months and are seeking to purchase their first homes, in line with Section 89(2) of the Pension Reform Act 2014.

PenCom’s guidelines provide that where 25 per cent of a contributor’s RSA balance exceeds the required equity contribution, the contributor can only access the amount needed for the equity contribution.

Where the 25 per cent is insufficient, contributors may use voluntary contributions where applicable, while personal pension contributors may also access the contingency portion under the relevant guidelines.

Where the available pension resources remain insufficient to meet the required equity contribution, the RSA holder is expected to provide the balance to the mortgage lender.

The policy covers pension contributors who are actively employed, including salaried workers and eligible self-employed contributors.

Workers still struggle to access NHF loans

The growing reliance on pension savings comes amid concerns over the effectiveness of the National Housing Fund in providing affordable mortgage finance to workers.

President of the Nigeria Labour Congress, Joe Ajaero, said workers had continued to face difficulties accessing housing loans despite regular deductions from their salaries for the NHF.

Ajaero said the government had consistently deducted the mandatory 2.5 per cent contribution from workers’ salaries, but argued that the Federal Mortgage Bank of Nigeria had not adequately communicated information about the contributions made into workers’ NHF accounts.

According to him, the lack of information has frustrated workers who are unable to take full advantage of the scheme.

He also raised concerns about delays in processing housing loans.

Ajaero said the NHF Act provides for a 90-day period from loan application to disbursement, but claimed that delays in approving loans had forced some workers to abandon their applications.

He further alleged that some applicants had resorted to third-party agents to accelerate the process, sometimes at unofficial costs.

“Despite the increase in the total pool in NHF, workers were still unable to get loans to get shelter,” he said.

Experts back pension-backed homeownership

Urban planner and environmentalist Michael Simire said the difficult economic environment, including naira depreciation, had made homeownership increasingly difficult for many Nigerians.

He said the pension scheme was nevertheless creating an avenue through which some workers could raise the funds required to purchase homes.

Simire also pointed to the existence of vacant residential and commercial properties, arguing that affordability remained a major reason many Nigerians could not take up available housing.

Director of the Centre for Pension Rights Advocacy, Ivor Takor, described the inclusion of homeownership within the pension scheme as a positive development.

However, he said Nigerians who were outside the pension scheme should also have access to housing loans at moderate interest rates.

Takor called for additional measures such as subsidies, tax concessions and appropriate private, cooperative and public-sector housing initiatives to expand access to affordable homes.

High property costs weigh on housing demand

Principal Partner of M.I. Okoro and Associates, Meckson Innocent Okoro, said the difficult economic environment had contributed to weak demand for residential mortgages and real estate.

He said high exchange rates had pushed up the cost of inputs across the property sector, making homes increasingly unaffordable for average investors.

According to Okoro, the high cost of property also creates longer investment recovery periods.

He illustrated the pressure by comparing a property that previously cost N30m with one that could now cost N90m, arguing that an investment that might previously have been recovered within five years could now require a much longer period.

Okoro said the entry of pension savings into the housing market could help moderate property prices and increase homeownership if the scheme is effectively implemented.

Former President of the Pension Fund Operators Association of Nigeria (PenOp), Olumide Oyetan, also said the residential mortgage scheme could improve contributors’ welfare and have a positive impact on the wider economy.

He said successful implementation of the initiative would improve people’s welfare and contribute to economic progress.

Housing finance remains a major challenge

The sharp rise in pension-backed housing finance comes as Nigeria continues to face a significant gap between housing supply, property prices and household purchasing power.

While allowing eligible workers to use part of their retirement savings provides an additional source of equity for home purchases, stakeholders continue to point to the need for broader reforms in mortgage finance and housing delivery.

The figures show that pension savings are becoming an increasingly important source of housing finance for Nigerian workers.

However, the continued increase in the amount workers need to withdraw from retirement savings also highlights the financial pressure prospective homeowners face in raising the initial capital required to enter the housing market.

For workers outside the pension scheme, stakeholders say alternative financing mechanisms will also be required if homeownership is to become more accessible.

The combination of affordable mortgage financing, improved access to housing loans, lower construction costs and increased housing supply remains central to efforts to address Nigeria’s housing crisis.

The post Rising Property Costs Push More Workers to Use Pension Savings for Homes appeared first on Housing TV Africa.

Rising house rents in the Federal Capital Territory are putting increasing pressure on household incomes, with some residents now spending a substantial portion of their annual earnings on accommodation and cutting back on food, education, transportation and other essential expenses.

A News Agency of Nigeria study cited by The Whistler found that the rising cost of accommodation has forced many Abuja households to reduce their standard of living as rent increases continue to outpace incomes.

The report comes as the National Bureau of Statistics recorded a sharp increase in rent inflation, with the rate rising to 33.8 per cent in July 2026 from 14.79 per cent in June.

Residents interviewed across different parts of the FCT described significant increases in annual rents, with some saying the increases had affected their businesses, savings and ability to meet other household obligations.

Abuja residents face steep rent increases

Olusegun Daniels, a businessman living in Karu, said the annual rent for his two-bedroom bungalow increased from N1.5 million to N3.5 million.

He said the more than 100 per cent increase had affected his business, which was already experiencing weak turnover.

Daniels also said the rent for his business premises had risen from N300,000 to N450,000, adding to the financial pressure on his household and business.

Another resident, Emeka Okafor, who lives in Wuse, said the rent for his one-bedroom apartment increased from N1 million to N1.8 million before rising further to N2 million.

Although the higher rent had become difficult to afford, Okafor said he had continued living in the area because of its proximity to his business.

He said the combination of weak business activity and rising rents had left him and others struggling to keep up with their financial obligations.

Families cut back on household needs

Evelyn Bode, a civil servant living in Kubwa, said a two-bedroom apartment that previously rented for between N600,000 and N800,000 was now going for between N1.5 million and N2 million a year, depending on the location and condition of the building.

The rising rent has forced her family to make changes to its household spending.

Bode said she had moved her children to cheaper schools and reduced spending on food as the cost of maintaining the household became increasingly difficult.

She said the pressure had reached a point where meeting basic needs had become a challenge.

Another civil servant, Livinus Anya, who lives in Nyanya, said his annual rent increased from N600,000 in February 2025 to N1.6 million in December 2025.

Anya said he previously made monthly contributions and savings to raise money for his annual rent, but the new rent was beyond what his savings could comfortably cover.

He said the pressure had also affected his ability to use his vehicle because he could no longer afford to combine fuel costs with rent, school fees and feeding expenses.

According to him, a two-bedroom apartment in a new building in the area now rents for between N2 million and N2.5 million annually.

Two-year rent demands add to pressure

Sani Musa, a teacher living in Lugbe, said the demand for two years’ rent upfront by some landlords was making it increasingly difficult for low-income earners to secure accommodation.

Musa linked the increase in rents to several factors, including the housing deficit, rural-to-urban migration and the rising cost of building materials.

He called for government intervention and regulations to address sharp increases in rent and prevent what he described as unreasonable hikes by landlords.

He also argued that any regulation introduced to address the problem would need to be properly enforced.

Workers struggle to keep pace with housing costs

Abigail Abidolu, a civil servant living in Apo Resettlement, said her one-bedroom apartment had increased from N500,000 to N1.2 million.

She said the increase in rent had come at a time when salaries had not increased substantially.

According to her, some additional income opportunities and training-related benefits previously available at her workplace had also been cancelled, further reducing her family’s financial flexibility.

The experiences of the residents interviewed reflect the broader challenge created when housing costs rise faster than household incomes.

For many workers, annual rent payments are not the only housing-related expenses. Agency fees, legal charges, service charges and other costs can increase the amount required before a tenant can move into a property.

Housing affordability remains a major challenge

The rising rents are occurring alongside broader pressures on household budgets.

Residents are also dealing with higher costs for food, transportation, healthcare, education and other necessities, leaving less disposable income for housing.

The NBS rent-inflation figure cited in the report highlights the scale of the pressure facing tenants across the country, while the individual experiences in Abuja show how the increase is affecting households at different income levels.

The continued increase in rent also raises concerns about housing affordability in the FCT, particularly for low- and middle-income workers who depend largely on fixed salaries.

As rents rise, households may be forced to move farther away from employment centres, reduce the quality or size of their accommodation, share housing with others or divert money meant for other household needs towards rent.

Calls for affordable housing and rent regulation

Residents interviewed in the study called for stronger government intervention to expand access to affordable housing and address rising rental costs.

Anya urged governments at different levels to provide low-cost housing for workers, while Musa called for measures that would regulate rent increases.

The residents also pointed to the need for more affordable housing units to reduce pressure on the existing rental market.

The housing challenge in Abuja is further complicated by population growth, demand for accommodation around employment centres and the cost of developing new housing.

As construction costs remain high and demand for housing continues, residents face the challenge of finding accommodation they can afford without sacrificing other essential household needs.

For many Abuja households, the rising cost of rent has therefore become more than a housing issue. It is increasingly affecting how families allocate their income across food, education, transport, healthcare and other basic needs.

The post Rising Abuja Rents Consume Workers’ Annual Earnings as Households Cut Spending appeared first on Housing TV Africa.

Nigerian households became more pessimistic about their economic and financial conditions in September 2026, with a corresponding decline in their willingness to make major purchases, including houses, investments and other high-value items.

The development was contained in the latest Central Bank of Nigeria Household Expectations Survey, which showed that overall consumer sentiment fell to -18.7 index points in September, from -9.9 points in August.

The CBN said the decline reflected weaker household expectations about the economy, family finances and income, while essential expenses continued to take priority over major purchases.

Nigerians reluctant to buy homes

The survey showed that households remained hesitant to commit substantial portions of their income to major purchases.

The outlook index for house purchases stood at -68.2 points in September, making housing one of the areas with the strongest negative sentiment among the major purchase categories surveyed.

The outlook for acquiring cars and other motor vehicles stood at -67.3 points, while investments recorded -50.7 points. Household appliances and other consumer durables recorded -49.5 points, while the outlook for rent stood at -32.0 points.

The CBN said the figures showed that households were reluctant to spend large portions of their income on houses, vehicles and investments.

Buying conditions also remained below the 50-point threshold, which the survey uses to distinguish favourable from unfavourable conditions.

For September, respondents’ buying-condition indices for consumer durables, motor vehicles and buildings and landed properties stood at 19.4, 15.7 and 14.8 points, respectively.

The figures point to continued caution among households considering property purchases, at a time when income pressures and high living costs are competing with long-term spending plans.

Household confidence weakens

The overall consumer sentiment index declined by 8.8 points during the month.

The CBN’s index for current economic conditions stood at -21.5 points, indicating a negative assessment of prevailing economic conditions among households.

The Family Financial Situation Index was also negative at -23.9 points, while the Family Income Sentiment Index stood at -10.5 points.

The figures indicate that respondents remained concerned about both their household finances and income levels.

However, households expected conditions to improve gradually over a longer period.

Consumer sentiment was projected at -8.7 points for the following month and -0.4 points over the next three months. Over the six-month horizon, the index was projected to turn positive at 7.1 points.

The CBN said the expected improvement suggested that household willingness to spend could strengthen gradually if economic conditions improve.

Rising prices influence household priorities

The survey also showed that households perceived prices to be rising more strongly in September.

The Consumer Sentiments Index for average prices of selected items increased to 33.5 points in September, from 23.0 points in August.

The CBN said the increase indicated that households perceived the prices of selected goods and services to be high.

With household budgets under pressure, respondents continued to prioritise essential spending.

Food remained the dominant expenditure priority, followed by transportation, other household goods, education, electricity and water.

These categories were also expected to remain among the main areas of household expenditure over the following three and six months.

Housing demand faces affordability pressure

The weaker appetite for home purchases comes against a broader backdrop of pressure on household purchasing power and borrowing costs.

The CBN’s survey indicates that households are prioritising immediate necessities, leaving less room for major financial commitments such as buying homes, investing or acquiring property.

The reluctance is reflected not only in the negative outlook for house purchases but also in the low buying-condition index for buildings and landed properties.

For the housing sector, weaker household purchasing intentions can affect demand for residential properties, particularly where prospective buyers depend on savings or mortgage financing to complete purchases.

The CBN’s Monetary Policy Committee reduced the Monetary Policy Rate to 23 per cent at its September 21–22, 2026 meeting, down from 26.5 per cent previously. The committee also retained the Cash Reserve Requirement for deposit money banks at 45 per cent.

Despite the change in the policy rate, the household survey shows that consumers remained cautious in September, with financial concerns and perceptions of high prices continuing to influence spending decisions.

Essential spending remains dominant

The CBN survey further showed that households continued to concentrate their available income on necessities rather than discretionary and long-term purchases.

Food remained the leading expenditure priority, while transportation, household goods, education, electricity and water also featured prominently.

This spending pattern suggests that households are continuing to manage limited disposable income by prioritising immediate needs.

The CBN said sentiment across most expenditure categories was expected to strengthen slightly over the following six months, pointing to the possibility of a gradual improvement in household spending intentions.

For now, however, the September survey shows that housing, investments, vehicles and other major purchases remain areas where Nigerian households are exercising significant caution.

The post High Living Costs Push Nigerians to Delay Homes, Investments, CBN Says appeared first on Housing TV Africa.

The Federal Government and state governments are set to review some of the structural challenges affecting housing delivery in Nigeria, with mortgage financing, land administration and institutional systems expected to take centre stage at the 15th Meeting of the National Council on Land, Housing and Urban Development.

The five-day meeting is scheduled to hold in Sokoto from October 12 to 16, 2026, bringing together federal and state housing authorities, regulators, housing corporations, built-environment professionals and other stakeholders.

The meeting is themed “Strengthening Mortgage, Land and Institutional Systems for Accelerated and Inclusive Housing Delivery.”

The council is expected to examine some of the persistent barriers limiting access to housing across the country and consider measures that can improve the systems supporting housing development.

The discussions are expected to cover access to land, housing finance, mortgage systems, land administration and urban development, with participants expected to share experiences and consider areas where stronger collaboration between the Federal Government and states is required.

Mortgage and land systems in focus

The meeting comes amid continued concerns over the affordability and accessibility of housing in Nigeria.

Stakeholders in the housing sector have increasingly highlighted the importance of improving access to land and long-term housing finance, particularly for households that are unable to meet the upfront costs associated with homeownership.

The council is therefore expected to examine how mortgage systems can be strengthened while addressing land administration challenges that affect the development and transfer of residential properties.

The Federal Ministry of Housing and Urban Development has previously identified effective land management and innovative financing among the areas requiring coordinated action between the Federal Government, states and other stakeholders.

At the 14th meeting of the council held in Ilorin in January 2026, stakeholders considered issues including effective land management and administration, urban renewal, local building materials, public-private partnerships and innovative financing and investment strategies for housing expansion.

States, housing agencies to participate

The Sokoto meeting is expected to bring together state commissioners and permanent secretaries responsible for lands, housing and urban development.

General managers and chief executive officers of state housing corporations, state surveyor-generals and representatives of regulatory agencies are also expected to participate.

The National Council on Land, Housing and Urban Development serves as a platform for the Federal Government and states to coordinate policy discussions around land administration, housing delivery and urban development.

The council also provides an avenue for stakeholders to review previous decisions, exchange experiences and consider policies that can be implemented at both federal and state levels.

At its 14th meeting in Ilorin, the council reviewed 98 memoranda submitted by stakeholders, with 62 considered suitable for deliberation. It also reviewed progress on decisions reached at the 13th council meeting held in Gombe in 2024.

Reforming systems beyond housing construction

The focus of the 15th meeting reflects a growing emphasis on the systems behind housing delivery rather than simply increasing the number of houses constructed.

Land availability, property registration, mortgage financing and institutional coordination can influence how quickly housing projects are developed and how easily prospective homeowners can access them.

Previous council deliberations have similarly highlighted land as a key requirement for housing development and homeownership, while identifying mortgage financing as an important component of housing affordability and accessibility.

The council is expected to use the Sokoto meeting to examine practical strategies for improving these systems and strengthening coordination between federal and state authorities.

Towards more coordinated housing delivery

The five-day meeting is expected to provide an opportunity for federal and state housing authorities to assess existing policies, identify implementation gaps and agree on areas requiring stronger cooperation.

Stakeholders will also be expected to consider measures that can improve access to affordable and inclusive housing while strengthening the institutional framework supporting land and housing development.

The outcome of the deliberations could provide further direction for federal and state housing policies, particularly in the areas of mortgage finance, land administration and urban development.

The post FG, States Seek Stronger Land and Mortgage Systems for Affordable Housing appeared first on Housing TV Africa.