Lagos Records ₦1.77tn IGR as Housing and Infrastructure Needs Grow

Lagos State generated ₦1.77 trillion in internally generated revenue (IGR) in 2025, accounting for 34.4 per cent of the combined ₦5.15 trillion generated by Nigeria’s 36 states and the Federal Capital Territory.

The figure places Lagos significantly ahead of other sub-national governments and highlights the state’s revenue capacity at a time when demand for housing, transport infrastructure and urban services continues to increase.

Data released by the National Bureau of Statistics (NBS) showed that combined IGR across the states and the FCT rose by 40.93 per cent, from ₦3.65 trillion in 2024 to ₦5.15 trillion in 2025.

Lagos accounts for more than one-third of state IGR

Lagos generated ₦1.769 trillion during the year, with ₦1.48 trillion coming from tax revenue and ₦292.64 billion generated through ministries, departments and agencies.

Rivers State ranked second with ₦428.42 billion, while Enugu recorded ₦406.77 billion. The Federal Capital Territory generated ₦356.34 billion, followed by Ogun State with ₦252.36 billion.

Lagos’ revenue was more than four times that of Rivers and exceeded the combined revenue of many of the lower-ranking states.

The NBS said the figures were compiled by the Joint Revenue Board from official records and submissions by state boards of internal revenue. It also noted that the figures remain subject to reconciliation and possible updates by the respective revenue authorities.

Revenue strength comes as Lagos faces major housing needs

Lagos’ strong revenue position comes against the backdrop of substantial housing and urban development pressures.

Recent research by GTI Investment Group estimated that Lagos requires about ₦6 trillion in fresh capital annually to keep pace with its housing deficit.

The research also identified a significant mismatch between housing supply and demand, with lower-priced homes accounting for only a small share of available supply despite representing the largest concentration of estimated demand.

The situation highlights the difference between a state’s revenue capacity and the amount of capital required to address its housing needs.

Although Lagos generates significantly more IGR than other states, the scale of investment required for housing means annual state revenue alone cannot meet the full requirement.

Housing investment requires more than public revenue

Lagos’ sizeable IGR gives the state greater capacity to finance public infrastructure and support urban development, but housing delivery requires a broader pool of capital.

Land acquisition, construction, infrastructure provision, mortgage finance and private development all require substantial investment.

GTI’s research estimates that Lagos needs approximately ₦6 trillion in fresh capital each year to address its housing requirements. The figure demonstrates the gap between public revenue and the capital required to deliver housing at the scale demanded by the state’s growing population.

The situation strengthens the case for combining public expenditure with private investment, institutional capital and housing finance mechanisms.

Infrastructure remains critical to Lagos property development

The relationship between Lagos’ revenue base and its property market extends beyond the construction of housing.

Transport networks, drainage systems, water infrastructure, electricity supply and other urban services influence where residential and commercial developments can take place and how property values change.

GTI’s research found that transport connectivity is already influencing property markets in Lagos, with properties located around rail infrastructure recording higher rental yields and, in some areas, potential value premiums compared with properties in less-connected locations.

Infrastructure investment can therefore have wider economic effects by improving accessibility while supporting development along emerging urban corridors.

Lagos revenue is predominantly tax-driven

The composition of Lagos’ IGR is also significant to the state’s fiscal position.

Of the ₦1.77 trillion generated in 2025, ₦1.48 trillion came from tax revenue, while ₦292.64 billion was generated by ministries, departments and agencies.

The pattern differs from states such as Enugu, where MDA-generated revenue accounted for a substantially larger share of total IGR.

Across the states and FCT, tax revenue amounted to ₦3.79 trillion, representing 73.64 per cent of the combined ₦5.15 trillion IGR. MDA-generated revenue contributed ₦1.36 trillion.

For Lagos, the dominance of tax revenue reflects the size of the state’s formal economic activity and taxable base.

Revenue capacity could support urban infrastructure

A stronger internally generated revenue base gives states greater capacity to plan and finance infrastructure without relying entirely on federal transfers.

For Lagos, this capacity is particularly relevant because of the size and complexity of its urban economy.

The state is simultaneously dealing with population growth, rising housing demand, transport congestion, infrastructure requirements and pressure on existing urban systems.

However, greater fiscal capacity does not automatically result in improved housing delivery. The effectiveness of spending depends on how funds are allocated, the quality of project execution and the extent to which public investment attracts additional private capital.

Private capital remains essential to closing the housing gap

Lagos’ revenue position also highlights the continuing importance of private-sector participation in housing delivery.

Research previously reported by Nigeria Housing Market showed that lower-priced housing represents the largest concentration of estimated demand in Lagos, while much of the available housing supply is concentrated at higher price points.

Closing this gap requires developers to access land and finance at costs that allow them to provide homes within the purchasing capacity of middle- and lower-income households.

Government revenue can support enabling infrastructure, land administration and public housing interventions, but private developers and institutional investors remain important to expanding the state’s overall housing supply.

Fiscal capacity and property-market development

Lagos’ ₦1.77 trillion IGR therefore has implications beyond the state’s fiscal accounts.

A strong revenue base can potentially support infrastructure that opens up new development corridors, improves the investment environment and strengthens the state’s capacity to participate in housing programmes.

For developers and investors, the more important issue is how that fiscal capacity translates into infrastructure and development opportunities.

Improved roads, mass transit, drainage, utilities and other infrastructure can make previously less accessible areas more viable for residential, commercial and industrial development.

Outlook

Lagos’ position as Nigeria’s largest contributor to sub-national IGR highlights the considerable economic capacity concentrated within the state.

At the same time, the revenue figures illustrate the scale of the challenges facing one of Africa’s fastest-growing urban markets. Housing demand, infrastructure requirements and urban expansion continue to require capital on a scale that cannot be met by government revenue alone.

Public revenue will remain important to Lagos’ housing and infrastructure development, but attracting additional private and institutional investment will also be necessary to expand delivery.

With Lagos generating ₦1.77 trillion in IGR in 2025, attention now turns to how effectively that fiscal capacity can support the infrastructure and housing investment required by the state’s expanding urban economy.

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The housing affordability crisis confronting Nigeria and many African countries cannot be solved merely by increasing the number of houses constructed.

Housing becomes affordable when the entire financial architecture supporting its production, purchase and rental is deliberately structured for affordability.
Experience from the United States, United Kingdom, Canada, Singapore and Malaysia demonstrates that governments rarely expect low- and middle-income households to purchase homes produced entirely with expensive commercial land, commercial infrastructure, commercial development finance and commercial mortgages.

Instead, governments intervene at different points in the housing value chain.
They subsidise land.
They provide capital grants.
They supply infrastructure.
They offer low-interest development finance.
They guarantee mortgages.
They provide tax incentives to private investors.
They support social and affordable rental housing.
They give direct assistance to qualifying households.
They leverage government resources to attract much larger volumes of private and institutional capital.
The central finding of this report is therefore:
Affordable housing is created by affordable finance.
The United States relies heavily on tax credits, federal housing programmes, rental assistance and a sophisticated private housing-finance market.

The United Kingdom combines large-scale government grants with housing associations, local authorities, borrowing and private institutional capital.
Canada uses federal funding, concessional finance and partnerships with provinces, territories and municipalities.

Singapore integrates public land management, public housing development, household grants, compulsory savings and specialised housing loans.
Malaysia combines direct public housing programmes, construction subsidies, government-backed housing credit guarantees and public-private delivery mechanisms.
Nigeria does not need to copy any single country.

The stronger strategy would be to combine suitable elements from each model into a Nigeria Affordable Housing Finance Framework adapted to the country’s income structure, federal system, large informal economy and housing deficit.

1. INTRODUCTION: WHY AFFORDABLE HOUSING IS REALLY A FINANCE QUESTION
Governments frequently announce affordable housing programmes by stating the number of houses they intend to construct.
But the more important questions are:
Who finances the land?
Who pays for infrastructure?
At what interest rate does the developer obtain construction finance?
How much equity must the developer contribute?
At what interest rate does the eventual purchaser borrow?
What happens to households that cannot qualify for conventional mortgages?
How are low-income households that should rent rather than purchase supported?
If these questions are not addressed, calling a development “affordable housing” does not make it affordable.

A developer who:
* purchases land commercially;
* finances infrastructure;
* borrows construction money at high interest;
* purchases expensive building materials;
* pays taxes and development charges;
* bears approval delays; and
* must recover capital and earn a reasonable return
cannot simply reduce the selling price because government labels the project affordable.
The countries examined in this report demonstrate a different approach.
They intervene before the house reaches the household.

2. UNITED STATES: USING TAX POLICY AND PRIVATE CAPITAL
The United States provides an important example of how government can stimulate affordable housing without directly constructing every home.
One of the country’s most significant affordable rental housing instruments is the Low-Income Housing Tax Credit, or LIHTC.
HUD describes LIHTC as the most important resource for creating affordable rental housing in the United States. State and local allocating agencies currently receive the equivalent of approximately US$12 billion in annual budget authority to issue credits supporting the acquisition, rehabilitation or construction of rental housing targeted at lower-income households. (HUD User⁠)
How the tax-credit mechanism works
Instead of government paying the entire construction cost:
Government creates a tax credit.
The credit is allocated to an eligible affordable housing project.
Investors provide equity to the project in return for the tax benefits.
The developer therefore needs less conventional debt.
Lower debt reduces the amount of rental income required to service financing.
That makes lower rents more financially feasible.
The important lesson is:
Government can finance affordable housing through the tax system, not only through direct budget expenditure.
This is particularly relevant to Nigeria.
Rather than depending entirely on annual housing appropriations, government could provide carefully designed tax incentives to pension-backed investment vehicles, banks, insurance companies, REITs and other qualified investors financing certified affordable rental projects.

3. THE AMERICAN MODEL ALSO SUPPORTS THE HOUSEHOLD
The United States demonstrates another important distinction in housing policy:
Supply subsidy versus demand subsidy.
A supply-side subsidy makes housing cheaper to produce.
A demand-side subsidy increases the household’s ability to pay.
America uses both.
Rental assistance programmes help eligible households meet rental costs, meaning government does not assume that every low-income household should immediately become a homeowner.
This is a critical lesson for Nigeria.
An effective national housing policy needs:
homeownership housing;
affordable rental housing;
social rental housing;
student and youth housing;
elderly housing;
worker housing;
and other tenure options.
Homeownership cannot be the only measure of housing success.

4. UNITED KINGDOM: CAPITAL GRANTS PLUS HOUSING PROVIDERS
The United Kingdom provides a strong example of using public money to reduce the capital cost of affordable housing.
Housing policy is devolved, so arrangements differ among England, Scotland, Wales and Northern Ireland. This report focuses principally on England.
The government’s Social and Affordable Homes Programme 2026–2036 is a ten-year programme valued at £39 billion. (GOV.UK⁠)
Homes England is responsible for at least £27 billion of this funding outside London. (GOV.UK⁠)
The programme provides grant funding to support the capital cost of developing affordable housing for rent or sale. (GOV.UK⁠)
Why capital grants matter
Consider an illustrative affordable housing development costing £100 million.
If government provides £35 million as capital grant, the housing provider does not need to finance the entire £100 million through commercial borrowing.
It may finance the balance through:
* its own capital;
* bank borrowing;
* bonds;
* institutional investment;
* rental income; and
* other funding.
Reducing debt requirements makes lower rents economically sustainable.
This represents a fundamental principle:
Affordable rent often begins with lower-cost capital, not rent control.

5. HOUSING ASSOCIATIONS: AN IMPORTANT INSTITUTIONAL LESSON
The British system also demonstrates the importance of specialised housing providers.
Government does not necessarily have to become:
the developer,
the contractor,
the property manager,
the landlord,
the mortgage lender,
and the maintenance company.
Instead, government can create policy, provide subsidy, regulate affordability and work through qualified delivery institutions.
Nigeria could significantly expand the role of:
* housing cooperatives;
* nonprofit housing organisations;
* state housing corporations;
* private affordable housing providers;
* pension-backed rental housing companies; and
* professionally governed housing associations.
The objective should be to develop institutions capable of holding affordable housing assets for decades, not merely developers interested in selling units immediately after construction.

6. CANADA: FEDERAL GOVERNMENT, PROVINCES AND MUNICIPALITIES WORKING TOGETHER
Canada’s approach is particularly important for Nigeria because both countries operate federal systems.
Canada’s National Housing Strategy is currently a 10-plus-year programme exceeding C$115 billion . (Canada Mortgage and Housing Corporation⁠)
By July 2026, official CMHC reporting indicated that more than C$82 billion had been committed toward supporting the creation, acquisition or repair of hundreds of thousands of housing units. (Canada Mortgage and Housing Corporation⁠)
A major feature of the Canadian model is the participation of different levels of government.
The federal government provides financing.
Provinces and territories participate through bilateral agreements and matching arrangements.
Municipalities influence:
* land use;
* planning;
* permitting;
* density;
* development charges;
* infrastructure; and
* housing approvals.
The lesson for Nigeria is significant.
Affordable housing should not be treated as the responsibility of the Federal Ministry of Housing alone.
The Federal Government cannot solve Nigeria’s housing challenge if states control important land and planning functions but affordable housing policy is not integrated across levels of government.

7. A NIGERIAN VERSION OF FEDERAL-STATE COST SHARING
Nigeria could establish a framework in which access to federal affordable housing funds is conditional upon state participation.
For example:
Federal Government provides:
* affordable housing capital grant;
* long-term financing;
* mortgage guarantee;
* tax incentives.
State Government provides:
* land;
* title;
* planning approval;
* reduction or waiver of development charges;
* part of infrastructure.
Local Government provides:
* local infrastructure coordination;
* community integration;
* local planning support.
Private developer or housing provider provides:
* equity;
* technical delivery;
* construction;
* project management.
Financial institutions provide:
* development debt;
* mortgage finance;
* rental housing finance.
This allows government money to leverage other people’s money rather than becoming the only source of housing finance.

8. SINGAPORE: INTERVENING ACROSS THE ENTIRE HOUSING VALUE CHAIN
Singapore provides perhaps the most integrated example among the countries examined.
Its housing system is not based simply on subsidising mortgage interest.
Government intervention extends across:
* land;
* planning;
* development;
* pricing;
* household grants;
* housing finance;
* retirement savings; and
* resale conditions.
The Housing & Development Board plays a central role in public housing development.
Eligible first-time families may currently receive an Enhanced CPF Housing Grant of up to S$120,000 toward qualifying new or resale flat purchases. (HDB⁠)
Additional CPF housing grants exist for eligible resale purchases, including grants of up to S$80,000 under relevant family arrangements. (HDB⁠)
The lesson is not simply that Singapore gives people money.
The more important lesson is that Singapore addresses affordability systemically.

9. WHY LAND POLICY MATTERS
Housing affordability begins with land.
Where land prices become highly speculative, the cost ultimately appears in the selling price or rent.
Singapore demonstrates how strategic public control of land can support long-term housing objectives.
Nigeria’s public land should similarly be treated as an economic development instrument, not merely a revenue-generating commodity.
When government contributes land to an affordable housing project, that contribution should be valued transparently.
If land worth ₦5 billion is contributed, government has effectively invested ₦5 billion.
The public should receive a measurable affordability benefit in exchange.
That benefit could be:
* reduced selling prices;
* controlled rents;
* permanent affordable housing;
* shared ownership;
* rent-to-own housing;
* worker housing.
Public land should never be transferred cheaply for “affordable housing” and subsequently converted into luxury housing without the public recovering the value of its subsidy.

10. SINGAPORE’S SECOND LESSON: LINKING SAVINGS AND HOUSING
Singapore’s housing framework also demonstrates the power of connecting long-term household savings with housing finance.
This raises an important question for Nigeria:
Can the country’s enormous pools of long-term institutional savings play a greater role in housing without compromising the safety of contributors?
The answer should not be reckless withdrawal of retirement savings.
Instead, Nigeria should explore secure structures through which long-term capital can finance:
* mortgage-backed assets;
* affordable rental portfolios;
* infrastructure;
* housing bonds; and
* professionally managed residential investment.
The key requirement is strong regulation and appropriate risk management.

11. MALAYSIA: DIRECT SUBSIDY AND GOVERNMENT GUARANTEES
Malaysia offers highly relevant lessons for Nigeria because it combines support for low-income households with mechanisms to extend housing finance to people who may struggle to qualify under conventional banking rules.
Under Malaysia’s Program Perumahan Rakyat — PPR, qualifying low-income households can access public rental housing, with official information indicating rents as low as RM124 per month, excluding maintenance. (KPKT⁠)
This demonstrates that governments must sometimes accept that the poorest households cannot pay the full economic cost of housing.
Trying to solve extreme low-income housing solely through mortgages is unrealistic.

12. MALAYSIA’S RUMAH MESRA RAKYAT MODEL
Malaysia’s Rumah Mesra Rakyat programme is designed for qualifying households with low incomes who have suitable land but lack adequate housing.
The official programme currently lists a RM20,000 construction subsidy, with repayment arrangements extending over 16 to 25 years and estimated payments around RM300 monthly under the programme structure. (SPNB⁠)
This concept has considerable potential for rural Nigeria and smaller cities.
Millions of Nigerians may have access to family land or community land but lack sufficient capital to complete a decent home.
Rather than constructing entirely new estates everywhere, Nigeria could consider a properly controlled programme of:
Serviced Plot + Core Housing + Incremental Expansion Finance
Households could receive a structurally sound starter home that can be expanded as income improves.

13. MALAYSIA’S MORTGAGE GUARANTEE MODEL
Perhaps one of Malaysia’s most relevant innovations for Nigeria is the housing credit guarantee system.
SJKP explicitly aims to help Malaysians—including people without fixed incomes or conventional payslips—obtain housing finance from participating financial institutions. (SJKP⁠)
Under the SJKP MADANI scheme, mortgage financing can reach RM360,000, with financing periods of up to 35 years. The guarantee may cover financing up to a maximum of 120% of the residential property’s purchase price when specified ancillary costs are included. (SJKP⁠)
This addresses one of Nigeria’s biggest housing finance problems:
Millions of Nigerians have income, but they do not have payslips.
An entrepreneur may earn ₦800,000 monthly.
A trader may turn over millions of naira annually.
A driver may have reliable daily income.
A consultant may earn irregular but substantial income.
Yet conventional mortgage underwriting may reject them because their income does not resemble a traditional monthly salary.
Nigeria therefore needs to move from:
Salary-based mortgage assessment
toward:
Verified-income mortgage assessment.
Evidence could include:
* bank statements;
* verified business transactions;
* tax filings;
* rent-payment history;
* cooperative savings;
* digital payment records;
* audited business cash flow;
* verified contracts.
Government guarantees could absorb part of the lender’s credit risk while maintaining prudent underwriting.

14. COMPARING THE FIVE MODELS
Financing Instrument United States United Kingdom Canada Singapore Malaysia
Direct capital subsidy Yes Strong Strong Strong Strong
Tax incentives Very strong Used Used Less central Used
Government-supported loans Yes Strong Strong Very strong Yes
Mortgage guarantees Strong system Available through wider system Important Public finance structure Very relevant
Rental assistance/social housing Strong Strong Strong Strong Strong
Public/strategic land intervention Local/state Important Provincial/local Very strong Important
Household purchase grants Various Various Various Very strong Various
Private capital mobilisation Very strong Very strong Strong Complementary Strong
Dedicated affordable housing providers Yes Very strong Strong HDB Government agencies/PR1MA
Informal-income mortgage support Limited applicability Conventional market Conventional market Structured system Particularly relevant

TEN LESSONS FOR NIGERIA
Lesson One: Stop Measuring Housing Policy Only by Units Built
Government should measure:
* affordability;
* household income-to-housing-cost ratios;
* mortgage accessibility;
* rental burden;
* land cost;
* infrastructure cost;
* financing cost;
* occupancy;
* beneficiary income.
A million houses that intended beneficiaries cannot afford do not represent successful affordable housing policy.

Lesson Two: Establish a National Affordable Housing Finance Framework
Nigeria needs a coordinated financing architecture connecting:
Federal Government
State Governments
FMBN
FHA
NMRC
commercial banks
mortgage banks
pension funds
insurance companies
developers
housing cooperatives
institutional investors
development finance institutions
and households.

Lesson Three: Create a Nigerian Affordable Housing Tax Credit
Drawing inspiration from the American model, qualifying investors in approved affordable rental housing could receive tax incentives linked to:
* number of units delivered;
* duration of affordability;
* household income served;
* rents charged;
* location;
* energy performance.
The incentive should be performance-based.
No affordable unit delivered should mean no affordable housing tax benefit.

15. CREATE AN AFFORDABLE HOUSING CAPITAL GRANT
Nigeria could adopt elements of the British model.
Instead of government constructing everything itself, qualifying projects could compete for capital grants.
The grant could be calculated according to affordability.
For illustration:
Market housing
No grant.
Workforce housing
Limited incentive.
Affordable housing
Moderate grant.
Social housing
Larger grant.
Housing for extremely vulnerable households
Highest subsidy.
The lower the household’s ability to pay, the larger the subsidy required.
This is more economically rational than pretending that every household can pay the same price.

16. CREATE A NATIONAL HOUSING CREDIT GUARANTEE CORPORATION
Nigeria should strongly consider a large-scale housing credit guarantee mechanism.
It should target:
* informal-sector workers;
* SMEs;
* self-employed professionals;
* young entrepreneurs;
* first-time homeowners;
* household

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A Japanese engineering and infrastructure consultancy, Chodai Company Limited, has proposed a public-private partnership (PPP) with the Federal Government to support housing delivery, smart city development, and strategic infrastructure projects across Nigeria. The proposal forms part of efforts to attract foreign investment and technical expertise to address the country’s housing deficit and accelerate urban development.

The proposal was presented during a meeting between the Minister of Housing and Urban Development, Arc. Muttaqha Rabe Darma, and a delegation from Chodai Company Limited, facilitated by the Nigerian Investment Promotion Commission (NIPC). Discussions focused on collaboration in housing construction, road infrastructure, urban development, hydropower generation, renewable energy, and other projects to be delivered through public-private partnerships.

Leading the Japanese delegation, Motoko Imai, said smart city development through PPPs remains one of Chodai’s strategic priorities. She explained that the Tokyo-based firm has successfully delivered major infrastructure projects across Asia and Africa and is currently executing development projects in partnership with the Niger State Government. According to her, the company is ready to deploy its engineering expertise, innovative technologies, and international experience to support Nigeria’s housing and infrastructure transformation.

Minister Darma welcomed the proposal, noting that the Federal Government remains committed to creating an enabling environment for private investment in housing and infrastructure. He said international partnerships are essential to achieving the objectives of the Renewed Hope Housing Programme and reducing Nigeria’s estimated housing deficit through sustainable and innovative financing models.

The minister added that the proposed collaboration aligns with the government’s broader strategy of leveraging public-private partnerships to improve housing supply, modernise urban infrastructure, and promote sustainable city development. He expressed confidence that Japanese technology and investment would contribute significantly to improving construction efficiency and expanding access to affordable housing.

Industry stakeholders believe that stronger international partnerships, increased foreign direct investment, and technology transfer will play a vital role in transforming Nigeria’s housing sector. They argue that combining global expertise with local capacity will enhance infrastructure delivery, create employment opportunities, and support long-term economic growth.

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Nigeria and Saudi Arabia have begun discussions on a strategic partnership aimed at attracting investment into Nigeria’s housing and infrastructure sectors, as both countries seek to deepen bilateral cooperation and address the nation’s housing deficit. The proposed collaboration is expected to promote affordable housing delivery, create jobs, and strengthen long-term economic ties between the two nations.

The Minister of Housing and Urban Development, Arc. Muttaqha Rabe Darma, held talks in Abuja with the Saudi Arabian Ambassador to Nigeria, Yousef Bin Muhammad Al-Balawi, to explore opportunities for collaboration in real estate investment, infrastructure development, and technology transfer. Discussions also covered Nigeria’s participation in the Riyadh Real Estate Future Forum (RFF) 2027, which is expected to bring together global investors and industry stakeholders.

Darma said international partnerships remain essential to achieving the Federal Government’s housing objectives under the Renewed Hope Agenda. He noted that Nigeria’s large housing demand presents significant investment opportunities and expressed optimism that Saudi Arabia’s experience in large-scale housing delivery could support efforts to expand access to decent and affordable housing across the country.

The minister added that the proposed partnership could encourage Saudi developers and investors to participate in Nigeria’s real estate market while facilitating the exchange of technical expertise, modern construction technologies, and best practices in housing development. According to him, greater foreign investment would help accelerate housing delivery, stimulate economic growth, and strengthen the construction industry.

Saudi Ambassador Yousef Bin Muhammad Al-Balawi reaffirmed his country’s readiness to support Nigeria’s housing development efforts. He highlighted Saudi Arabia’s achievements through its National Housing Company and said the Kingdom is willing to share its experience in housing development, urban planning, and project delivery. He also noted that the partnership could create employment opportunities for qualified Nigerian professionals and skilled workers in Saudi Arabia’s housing and construction sector.

Both countries agreed that stronger cooperation in housing, infrastructure, investment, and technology would contribute to sustainable urban development while reinforcing diplomatic and economic relations. Stakeholders believe the partnership could unlock new financing opportunities, increase private sector participation, and support Nigeria’s efforts to reduce its housing deficit through international collaboration.

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The Federal Housing Authority (FHA) has secured land in 28 states as part of efforts to expand affordable housing projects and improve access to decent homes across Nigeria. The agency said the initiative forms part of its strategy to establish a stronger presence nationwide and address the country’s persistent housing deficit.

According to the authority, several states have already allocated prime land for the development programme, while construction activities have commenced in some locations following the award of contracts. Groundbreaking ceremonies have already been conducted in states including Akwa Ibom, Abia, Kaduna, Abeokuta, and the Federal Capital Territory.

The FHA also disclosed that it is implementing reforms aimed at improving service delivery and safeguarding property records. As part of these efforts, the agency has commenced the digitalisation of its property files and is working towards full automation of its operations. The authority added that its test laboratory for geological and integrity assessments has become operational.

The agency noted that it has completed and commissioned several inherited projects over the past 26 months, including housing developments in Ibadan and Abuja that were previously considered difficult to complete. It added that work is also progressing on a 336-unit housing estate in Bwari, Abuja, with plans to commission the project before the end of the year.

The authority assured prospective homeowners and investors that it would maintain high standards of quality assurance, transparency, and accountability in delivering its projects. It also expressed appreciation to government institutions, regulatory agencies, and host communities for their support in advancing the housing initiatives.

Industry stakeholders have described the housing projects as evidence of the opportunities within Nigeria’s real estate sector and the potential of collaboration between government and private developers to improve housing delivery. They noted that affordable housing projects can stimulate economic growth, generate employment, and support related industries across the country.

Officials from the Office of the Secretary to the Government of the Federation also stated that the projects align with ongoing efforts to address Nigeria’s long-standing housing deficit and improve access to housing, particularly in the Federal Capital Territory and other regions.

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El-Salem Nigeria Limited has reaffirmed its commitment to providing quality housing solutions as it continues to expand its footprint in the country’s real estate sector.

The company stated that its focus remains on delivering residential developments that meet the needs of homebuyers while maintaining high standards of construction, affordability, and customer satisfaction.

According to the firm’s leadership, the demand for quality housing across Nigeria continues to grow, creating opportunities for developers to contribute to addressing the nation’s housing deficit. The company emphasized that strategic planning, innovation, and adherence to industry standards are critical to delivering sustainable housing projects.

El-Salem noted that its projects are designed to provide value for homeowners and investors through modern infrastructure, functional designs, and well-planned communities. The developer added that customer trust remains a key driver of its operations and long-term growth strategy.

The company also highlighted the importance of collaboration among government agencies, financial institutions, and private developers in expanding access to housing and improving the overall real estate ecosystem.

Industry observers say private sector developers continue to play a vital role in bridging Nigeria’s housing gap by investing in residential projects and supporting urban development across different regions of the country.

As housing demand continues to rise, stakeholders have stressed the need for increased investment, supportive policies, and innovative financing solutions to make homeownership more accessible to Nigerians.

El-Salem expressed optimism about the future of the housing sector, stating that it remains committed to delivering projects that contribute to community development and improve living standards.

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Nigeria housing deficit tops 20 million units, raising fresh concerns among industry stakeholders who say stronger government intervention is needed to improve housing delivery and expand access to affordable homes across the country.

Real estate developers and housing experts have warned that the widening gap between housing demand and supply continues to pose a major challenge to economic development and urban growth. With rapid population expansion and increasing urbanisation, the need for affordable residential housing has continued to outpace available supply.

Industry stakeholders argue that inadequate financing remains one of the biggest obstacles preventing large-scale housing development. Many developers struggle to secure affordable long-term funding, while commercial loans often come with high interest rates and repayment structures that are not suitable for real estate projects.

The challenge is compounded by limited access to mortgage financing for prospective homeowners. Experts note that many Nigerians are unable to obtain affordable mortgages, reducing effective demand for housing and making it more difficult for developers to recover investments through home sales.

Developers also point to rising construction costs as a major concern. Inflation, exchange rate volatility, and increasing prices of building materials have significantly raised project costs, forcing some developers to delay, scale down, or suspend projects altogether.

Beyond funding issues, stakeholders have identified infrastructure deficits, regulatory bottlenecks, land acquisition challenges, and multiple levies as factors contributing to the slow pace of housing delivery. According to industry experts, these issues increase development costs and ultimately affect housing affordability.

The housing sector plays a critical role in Nigeria’s economy, supporting construction, manufacturing, engineering, and other related industries. Experts warn that continued underinvestment in housing could have broader economic consequences, including reduced job creation and slower infrastructure development.

Stakeholders are therefore calling for stronger collaboration between government agencies, financial institutions, and private developers. Suggested measures include expanding access to housing finance, strengthening mortgage systems, encouraging public-private partnerships, and implementing policies that support long-term investment in residential development.

Analysts believe addressing the housing shortage will require sustained investment and coordinated action from both the public and private sectors. Without significant improvements in housing finance and development policies, the country’s housing deficit could continue to widen in the coming years.

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New reports by PAC Research have called for the adoption of incremental housing models, stronger housing finance systems and expanded public-private partnerships (PPPs) to address Nigeria’s widening housing deficit.

The publications, titled From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market and Lagos Housing Report: A Treasure Trove of Possibilities, argue that Nigeria’s housing challenges also present major investment opportunities valued in trillions of naira.

Housing Shortage Creates Investment Potential

According to the reports, Nigeria requires about 800,000 new homes annually to meet rising population growth and urban housing demand. This figure is projected to increase significantly, potentially tripling by 2030.

Despite the deficit, the research highlights a growing market opportunity for both local and international investors, driven by rapid urbanisation and increasing demand for affordable housing.

Low Mortgage Penetration Highlights Financing Gap

The reports also point to Nigeria’s low mortgage penetration, which currently stands at less than 1 percent of GDP.

This is significantly lower than countries such as the United States, where mortgage penetration is about 77 percent, and South Africa at 31 percent.

According to the publications, this gap underscores the need for deeper housing finance reforms to unlock sector growth.

FMBN Projects Rising Housing Demand

In the foreword to the reports, Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, warned that annual housing demand could rise to 2 million units by the end of the decade.

He described Nigeria’s housing sector as being at a critical turning point where urbanisation and population growth are creating both challenges and opportunities.

New Financing Models Recommended

The reports recommend several financing innovations to bridge the housing gap, including:

• Real Estate Investment Trusts (REITs)
• Diaspora mortgage schemes
• Federal Government housing initiatives
• Public-private partnerships (PPPs)
• Incremental housing development models

These mechanisms, according to PAC Research, are essential to expanding access to affordable housing and unlocking sector liquidity.

Lagos Remains Key Housing Market

The publications estimate that Lagos currently has about 1.49 million housing units, while demand stands at approximately 4.69 million units.

This creates an accessible market gap of roughly 2.81 million units, making Lagos one of Africa’s most active real estate markets.

The reports also note a shift in housing preferences, with more than 52 percent of residents favouring one- and two-bedroom apartments due to affordability and changing lifestyle patterns.

Strong Rental Returns in Prime Locations

PAC Research also highlighted strong rental yields in high-demand areas such as Lekki and Victoria Island.

According to the findings, three-bedroom apartments in Victoria Island can generate annual rents of up to N8 million, reflecting strong investor interest in prime Lagos real estate.

Experts Call for Immediate Action

Describing the report as a call to action, FMBN Managing Director Shehu Osidi said the time to invest in Nigeria’s housing sector is now.

He stressed that the benefits extend beyond financial returns to include inclusive economic growth and improved urban resilience.

Similarly, the Oniru of Iruland, Abdulwasiu Lawal, described the Lagos housing report as an important guide for real estate stakeholders and investors.

He noted that emerging growth corridors such as Ajah, Epe and Lekki are expected to drive the next phase of Lagos real estate expansion.

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Nigeria currently requires about 800,000 new homes annually to keep pace with rapid population growth, with demand projected to rise sharply and potentially triple by 2030, according to fresh housing market research.

Reports released by PAC Research revealed that Nigeria’s housing deficit has now exceeded 28 million units, with Lagos State accounting for an estimated 3.4 million-unit shortfall.

The reports, titled “From Shortage to Opportunity: Unlocking the Billion-Dollar Housing Market” and “Lagos Housing Report: A Treasure Trove of Possibilities,” provide one of the most extensive assessments of Nigeria’s housing sector and emerging investment opportunities.

Despite the widening housing gap, researchers argued that the situation presents significant economic opportunities for investors, developers and policymakers, with the housing market valued at potentially trillions of naira.

The national report, which featured a foreword by the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, noted that Nigeria currently requires around 800,000 housing units yearly to match population expansion and urbanisation trends.

It projected that housing demand could increase to approximately two million homes annually before the end of the decade.

The report also highlighted Nigeria’s weak mortgage sector, noting that mortgage penetration remains below one per cent of Gross Domestic Product (GDP), compared to 77 per cent in the United States and 31 per cent in South Africa.

“Nigeria stands at a critical juncture where rapid urbanisation and economic transformation converge to create unprecedented opportunities,” the report stated.

Researchers identified several innovative financing models capable of narrowing the housing gap, including Real Estate Investment Trusts (REITs), diaspora-backed mortgage products and the Federal Government’s Renewed Hope Housing Scheme.

A significant section of the study focused on Lagos, Nigeria’s economic centre, which reportedly attracts more than 475,000 new residents annually.

According to the findings, Lagos currently has an estimated housing stock of 1.49 million units against demand estimated at 4.69 million units, creating an accessible market gap of approximately 2.81 million units.

The report also observed changing housing preferences among residents, with more than 52 per cent reportedly favouring one-bedroom and two-bedroom apartments due to affordability concerns and lifestyle trends.

Researchers noted that demand for compact housing units continues to rise across major urban areas.

The study further identified strong rental returns in prime locations including Lekki and Victoria Island, noting that three-bedroom apartments in Victoria Island can attract annual rents of up to ₦18 million.

To address the housing shortage, PAC Research recommended broader adoption of incremental housing models, expansion of housing finance access, and stronger public-private partnerships to accelerate delivery.

Describing the report as a timely intervention, Osidi said it should serve as a wake-up call for stakeholders.

“This report is more than an analysis — it is a call to action. The time to invest in Nigeria’s housing market is now. The rewards extend beyond financial returns to include inclusive growth and urban resilience,” he said.

Also speaking, the Oniru of Iruland and former Lagos State Commissioner for Housing, Oba Abdulwasiu Lawal, described the Lagos-focused report as an important guide for real estate investors and stakeholders.

He noted that emerging corridors such as Lekki, Ajah and Epe are increasingly becoming strategic destinations for future housing investments.

The post Nigeria Needs 800,000 New Homes Yearly as Housing Deficit Surpasses 28 Million — Report appeared first on Housing TV Africa.

The Federal Government has reaffirmed its commitment to creating an enabling environment for housing investment and affordable housing delivery across Nigeria through stronger public-private partnerships.

Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, stated this during a meeting with the Chief Executive Officer of Shelter Advisory Services, Dr. Olayemi Rotimi Shodimu, ahead of the Renewed Hope Housing PPP Summit scheduled to hold in Abuja.

According to the minister, the meeting was aimed at reviewing preparations for the second edition of the summit, which is expected to bring together stakeholders in the housing and infrastructure sectors.

Darma said the Federal Ministry of Housing and Urban Development remains committed to collaborating with private sector players to address Nigeria’s growing housing challenges.

“Our ministry is proud to partner with Shelter Advisory Services for the second edition of the summit taking place on May 12, 2026, at the Yar’Adua Centre,” he said.

The minister described housing as a major driver of economic growth, employment generation and national development, stressing that the sector plays a critical role beyond providing shelter.

“Housing is more than shelter; it is a foundation for economic growth, job creation and national development,” he stated.

According to him, the Renewed Hope Agenda of President Bola Tinubu places strong emphasis on strengthening public-private partnerships to unlock investments, increase housing delivery and expand access to affordable homes for Nigerians.

Darma noted that collaboration between government and private investors remains essential to bridging Nigeria’s housing deficit and improving urban development nationwide.

Speaking earlier, the convener of the summit and Chief Executive Officer of Shelter Advisory Services, Dr. Olayemi Rotimi Shodimu, said the event seeks to move discussions around housing beyond policy conversations to practical implementation and measurable impact.

According to him, the summit is designed to translate policy clarity into viable projects capable of attracting long-term investment into the housing sector.

“The summit recognises Public-Private Partnerships as the most viable pathway for mobilising long-term finance, aligning public land and infrastructure with private sector expertise, and delivering housing at the scale Nigeria urgently requires,” he said.

Shodimu added that the summit would provide a platform for policymakers, developers, investors and housing agencies to explore sustainable financing models and strategies for accelerating housing delivery in the country.

He also disclosed that a technical training workshop for heads of housing agencies and developers would be held after the summit to strengthen capacity on leveraging Public-Private Partnerships and joint ventures for housing development.

According to him, the workshop will focus on structuring housing finance and implementing viable PPP frameworks capable of accelerating housing delivery nationwide.

Vice President Kashim Shettima is expected to attend the summit as Special Guest of Honour, while the Minister of Housing and Urban Development will deliver the ministerial address.

The keynote address will be delivered by Elena Panaritis, Founder of Thought4Action and an international expert in property rights reform, informal economies and PPP-driven housing development.

Stakeholders in the built environment are expected to use the summit to explore innovative solutions for addressing Nigeria’s housing deficit and attracting greater private investment into the sector.

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