More than 20,000 Lagos families have benefited from government-backed mortgage and rent-to-own housing programmes since the establishment of the Lagos State Mortgage Board, according to the agency’s General Manager and Chief Executive Officer, Bayowa Foresythe.

Foresythe said the Lagos Home Ownership Mortgage Scheme, popularly known as LagosHOMS, was created to provide a more affordable pathway to homeownership for low- and middle-income residents.

The Lagos State Mortgage Board was inaugurated in 2014 following concerns over the state’s growing housing deficit and the inability of many residents to purchase homes through outright payment.

According to Foresythe, the government recognised that the conventional cash-and-carry property market excluded many working families whose incomes could support gradual repayment but not immediate property acquisition.

The state consequently introduced mortgage and rent-to-own options that allow eligible residents to make an initial equity contribution and spread the outstanding cost of their homes over 10 years.

Foresythe said LagosHOMS properties had been allocated across the state’s five administrative divisions, known collectively as IBILE: Ikeja, Badagry, Ikorodu, Lagos Island and Epe.

Among the locations identified under the programme are Sangotedo Phases I and II, Surulere, Igbogbo and Ibeshe in Ikorodu, Epe, Ogba, Ilupeju, Ajara in Badagry, Odonosa and Idale.

The housing portfolio includes 360 units in Igbogbo, 420 units in Ibeshe and about 360 units in Epe.

Other developments include 96 and 144 units within the Sir Anthony Enahoro Housing Scheme in Ogba, 120 units at the Oba Mufutau Olatunji Hamzat Housing Estate in Ilupeju and more than 400 units in Ajara, Badagry.

Foresythe said additional housing developments were still under construction as the state worked to expand the supply of homes.

He explained that reduced equity requirements, relatively lower interest rates and the 10-year repayment period had made the programme more accessible to participating residents.

The state government has also introduced an optional early-completion arrangement for beneficiaries with consistent payment records.

Under the arrangement, qualified beneficiaries who have maintained uninterrupted payments for six years may be permitted to settle their outstanding balances instead of waiting until the end of the original 10-year period.

Foresythe identified life insurance, fire insurance, estate-management services and continuing support for beneficiaries as important measures introduced to sustain the scheme.

Despite the reported progress, he acknowledged that Lagos continues to face a substantial housing shortage because demand is growing faster than supply.

The state attracts new residents daily, and each additional household requires accommodation, placing further pressure on the existing housing stock.

Foresythe said neither the government nor private developers could independently deliver all the homes required in Lagos. He therefore advocated stronger partnerships with private investors to accelerate housing construction.

He also urged existing beneficiaries to meet their repayment obligations promptly, explaining that recovered funds would help the government extend housing opportunities to other residents.

The LagosHOMS experience demonstrates how rent-to-own and long-term mortgage arrangements can help workers move from tenancy into homeownership without paying the full property price at once.

However, meeting Lagos’ housing demand will require significantly increased construction, serviced land, affordable development finance and sustained public-private collaboration.

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Lagos requires about ₦6 trillion in annual housing investment to address its growing housing shortage, with the state’s deficit estimated at 3.4 million units, according to research presented by GTI Capital Research.

The findings were presented by Prof. Timothy G. Nubi, Founding Director of the University of Lagos Centre for Housing and Sustainable Development, at a housing and capital forum in Lagos. The research estimates that the state needs to deliver about 227,576 additional homes each year to meet population growth, migration and rising housing demand.

Lagos’ housing deficit has increased from an estimated 2.95 million units in 2016 to 3.4 million units in 2025, representing a 15 per cent rise over the period.

The research links the growing shortage to the difficulty of providing housing at prices that households can afford. Despite Lagos’ role as Nigeria’s major commercial centre, housing supply has not expanded sufficiently to match demand, contributing to higher rents and property prices.

₦6tn Financing Gap

GTI Capital Research estimates that Lagos faces an annual housing capital gap of roughly ₦6 trillion. The figure represents the estimated funding required to provide the housing supply that formal development does not currently deliver each year.

The research noted that the annual gap is nearly three times Lagos State’s 2026 capital expenditure budget of ₦2.337 trillion, highlighting the scale of the challenge for government.

The figures suggest that public spending alone is unlikely to provide enough capital to close the housing deficit. Greater participation from private developers, mortgage lenders, institutional investors and the capital market will therefore be important to expanding housing supply.

Housing Costs Outpace Income

The research also points to worsening affordability for Lagos residents. Rents across the state reportedly increased by between 80 per cent and 120 per cent from 2024 to 2026, while wages rose by only about 7 per cent to 9 per cent.

The disparity has placed additional pressure on household finances and made the transition from renting to homeownership more difficult for many residents.

Lagos also recorded a property price-to-income ratio of 19.2 times, compared with the five-times level used in the research to indicate severe unaffordability.

Rental prices vary significantly across the state. Two-bedroom apartments in Ikoyi were estimated at between ₦8 million and ₦70 million annually, with an average field-survey figure of about ₦30 million. In Victoria Island, rents ranged from ₦3 million to more than ₦50 million, with an average of approximately ₦18 million.

Yaba, Surulere and Ikeja recorded estimated two-bedroom rents ranging from ₦1.5 million to ₦12 million, while Lekki Phase 1 recorded a range of ₦1 million to ₦40 million.

Infrastructure and Property Values

GTI’s research identified infrastructure as the most significant factor influencing property prices across the 15 Lagos zones examined.

Roads, transport systems, drainage, electricity and other public infrastructure can improve access and raise the attractiveness of locations. However, improvements can also increase land values and housing costs when new housing supply fails to keep pace with demand.

The finding reinforces the connection between infrastructure investment, land values and housing affordability. For urban planners, coordinating infrastructure expansion with housing development could therefore become increasingly important.

Pension Funds Seen as Potential Housing Capital

The research identified Nigeria’s pension industry as another potential source of long-term housing finance.

Nigeria’s pension funds hold about ₦30 trillion in assets and can allocate up to 30 per cent to instruments such as Real Estate Investment Trusts, mortgages and asset-backed securities. According to Nubi’s presentation, however, only about 5 per cent is currently allocated to housing-related instruments.

Greater institutional investment could expand the pool of long-term capital available to developers, provided suitable investment structures, risk-management systems and affordable housing projects are available.

Nubi also argued that Nigeria needs to treat housing increasingly as an investment asset rather than depending mainly on government-funded construction. Potential financing channels include REITs, bonds, asset-backed securities, crowdfunding and mortgage innovations.

GTI Financing Proposals

GTI Research has proposed alternative mechanisms to unlock capital tied to Lagos’ land and property market.

One proposal is a Micro-Title Regularisation Window, which would seek to convert informal land occupation into mortgageable titles using satellite imagery and drone mapping.

Another proposal is a Lagos Infrastructure Value Capture Authority, designed to capture part of the increase in land values associated with public infrastructure investment and direct the proceeds towards infrastructure financing.

GTI estimates that its proposed financing instruments could mobilise between ₦2.75 trillion and ₦3.85 trillion annually, equivalent to about 45 per cent to 65 per cent of the estimated housing capital gap.

Housing Supply Remains the Central Challenge

The scale of Lagos’ housing shortage points to substantial unmet demand, but the research also highlights the importance of targeting affordable and middle-income segments rather than focusing predominantly on high-end developments.

Developers face significant challenges from construction costs and financing conditions, which can make it difficult to deliver homes at prices accessible to ordinary households. Rental housing, student accommodation and other demand-driven segments could offer opportunities where projects can be structured around sustainable financing.

Closing the housing gap will require coordinated action among government, developers, financial institutions, pension funds and capital-market operators. Measures such as improved land administration, infrastructure provision, faster approvals and lower development costs could help create conditions for greater private-sector participation.

For Lagos, the issue extends beyond building more houses. The state must also mobilise enough long-term capital to support development while ensuring that new homes are located where residents can afford both housing and the transport and essential services associated with them.

The post Lagos Needs ₦6tn Annually to Close 3.4m Housing Deficit appeared first on Housing TV Africa.

Nigeria’s persistent housing shortage may require a fundamental shift in construction methods, as experts point to Europe’s growing adoption of modular building systems as a viable solution to bridge the widening gap between housing demand and supply.

Across Europe, where housing shortages also persist, governments and industry players have increasingly turned to modular construction as traditional building methods struggle to keep pace with demand and rising costs.

Modular construction, which involves prefabricating building components in factories before assembling them on-site, is gaining traction for its efficiency, cost-effectiveness, and sustainability advantages over conventional approaches.

Analysts note that the system allows developers to complete projects between 50 and 90 percent faster, as off-site manufacturing can run simultaneously with site preparation, significantly reducing delivery timelines.

In addition to speed, modular construction reduces material waste and carbon emissions, aligning with global sustainability goals while lowering overall construction costs.

The European modular housing market, valued at about €31 billion as of 2025, is projected to exceed €40 billion by 2030, reflecting increasing acceptance of industrialised building systems.

Countries such as Sweden are leading the transition, with nearly half of new housing developments delivered through modular or off-site construction, supported by favourable policies and streamlined approval processes.

Similarly, Germany has expanded its modular housing footprint through incentives for climate-efficient construction, while the Netherlands is deploying the system to meet ambitious housing targets.

For Nigeria, the implications are significant, particularly in cities like Lagos, where housing demand continues to outstrip supply, leaving millions without access to affordable homes.

Estimates indicate that Lagos alone faces a housing deficit of about four million units, requiring the construction of approximately 187,000 homes annually over the next two decades to close the gap.

Experts argue that such targets are unlikely to be achieved using conventional construction methods, given existing constraints in financing, infrastructure, and project delivery capacity.

They contend that adopting modular systems could enable mass housing production, especially for low-income earners, by reducing costs and accelerating project timelines.

Stakeholders also emphasise the need for government support through policy reforms, incentives, and enabling environments that encourage private sector participation in modular housing development.

They warn that without embracing innovation and modern construction techniques, Nigeria risks deepening its housing crisis and missing opportunities for economic growth tied to the real estate sector.

Ultimately, analysts believe that rethinking housing delivery through industrialised construction methods could provide a scalable and sustainable pathway to addressing Nigeria’s housing deficit.

The post Experts Urge Nigeria to Adopt Modular Construction to Tackle Housing Crisis appeared first on Housing TV Africa.

According to a report by the Foundation for Investigative Journalism, the Assembly earmarked ₦35.47 billion for the project, while an additional ₦20 billion was approved for site development, bringing the total cost to ₦55.47 billion.

Budget documents published by the Lagos State Ministry of Economic Planning and Budget on February 3 indicate that the funds are allocated under the construction of residential buildings for members of the Assembly.

Housing Deficit Concerns

The investigation noted that, based on federal government benchmark prices for housing units, the ₦55.47 billion could deliver thousands of homes.

Using the approved prices—₦8.5 million for a one-bedroom unit, ₦11.5 million for a two-bedroom, and ₦12.5 million for a three-bedroom apartment—the amount could fund between about 4,400 and 6,500 housing units, depending on the design.

A 2025 housing market report by the Roland Igbinoba Real Foundation for Housing and Urban Development estimated Lagos’ housing deficit at roughly 3.4 million units, highlighting the scale of the shortfall.

Details of the Project

The residential development is planned for Ikeja Local Government Area and falls under the executive and legislative allocations of the state’s ₦4.4 trillion 2026 Appropriation Law.

The project budget covers designs, soil tests, pile works, documentation, and consultancy services.

In addition, ₦20 billion has been set aside for site development at the proposed permanent legislative quarters. The works will include perimeter fencing, drainage systems, gutter slabs, landscaping, and beautification of the Assembly complex and residential zone.

Previous Allocations

The report noted that the Assembly had previously received allocations for residential projects. In the 2025 budget, more than ₦6 billion was approved for property acquisitions in Lagos and Abuja.

By the third quarter of that year, about ₦1.0003 billion had been spent to purchase 40 properties across the two cities.

That same year, the state also approved ₦3.5 billion for rehabilitation works at the Assembly complex, covering repairs to facilities such as gatehouses, car parks, prayer centres, and leisure areas.

Lawmakers’ Position

Some lawmakers had earlier denied that the 2026 budget contained provisions for residential properties. They argued that the Assembly’s capital expenditure represented less than 0.04 per cent of the state’s total capital spending.

However, the investigation indicated that the Assembly’s ₦79 billion capital allocation accounts for about 3.3 per cent of the state’s ₦2 trillion capital budget for 2026.

In total, the Assembly has a budget of ₦123 billion out of the state’s ₦4.4 trillion appropriation for the 2026 fiscal year.

The post Lagos to Spend N55bn on Legislative Housing Despite 3.4m Deficit appeared first on Housing TV Africa.

The Lagos State Government has reaffirmed its commitment to addressing the state’s housing deficit through innovation, strategic planning, and strong public-private partnerships, resulting in the delivery of more than 11,000 housing units in nearly seven years.

The Permanent Secretary of the Ministry of Housing, Abdulhafis Toriola, disclosed this while hosting postgraduate students from the Centre for Planning Studies, Lagos State University (LASU), Ojo, who were on an academic visit to the ministry.

Toriola said the housing achievements recorded under the administration of Governor Babajide Sanwo-Olu demonstrate that the housing deficit in Lagos can be effectively reduced with the right mix of policy direction, private sector collaboration, and innovative delivery models.

Represented by the Director of Administration and Human Resources, Akanji Shadare, the permanent secretary commended the students and their lecturers for seeking practical exposure to housing administration and policy implementation.

He stressed the importance of continuous collaboration between academic institutions and government agencies, urging universities to regularly share research findings, data, and innovative ideas that could support housing delivery in the state.

The academic visit, according to the ministry, was designed to expose the students to real-world housing governance, service delivery frameworks, and policy execution, while bridging the gap between theory and practice.

Speaking on housing finance, the General Manager of the Lagos Building Investment Company (LBIC), represented by the Head of Mortgage and Credit Department, Olabisi Funsho-Peters, highlighted the role of mortgage institutions in the real estate value chain.

She explained that LBIC, an accredited mortgage bank insured by the Nigeria Deposit Insurance Corporation (NDIC), provides housing-specific mortgage loans of up to 70 per cent financing, with repayment tenures extending beyond 10 years.

Also addressing the students, the Executive Director of Enterprise Services at the Lagos State Development and Property Corporation (LSDPC), Adeniyi Aromolaran, outlined the agency’s mandate in real estate development, including construction, sales, and property rental.

He clarified, however, that LSDPC does not engage in social housing, noting that its operations are driven by commercial and investment considerations.

Earlier, the Programme Coordinator of the Centre for Planning Studies, LASU, Professor Aliyu Ibrahim, said the visit was aimed at giving students firsthand insight into how housing policies, data, and investment decisions are developed and managed in Lagos State.

He identified key learning outcomes from the engagement, including understanding how housing provision is coordinated between public and private sectors, how housing investments are structured, the challenges affecting housing delivery, and how housing distribution has evolved over time in Lagos.

In his remarks, the Director of the Centre, Professor Fatai, said the visit was organised to strengthen the link between academic training and professional practice, noting that much of the housing data used in universities is sourced from the Lagos State Ministry of Housing.

The post Lagos Tackles Housing Deficit Through Innovation, Public-Private Partnerships appeared first on Housing TV Africa.

In a bid to tackle Lagos’ chronic housing shortage, the Nigerian Society of Engineers (NSE), in partnership with the Lagos State Development and Property Corporation (LSDPC) and Locke Homes Limited, has commenced construction of a modern 18-unit terrace residential development in Alausa, Ikeja.

Located along Nurudeen Olowopopo Drive in the Central Business District (CBD), the four-floor development is designed to combine functionality, safety, and modern living standards. Speaking at the groundbreaking ceremony, NSE President, Mrs. Margaret Oguntala, described the project as more than a construction initiative—it is a commitment to social stability, urban growth, and the well-being of Lagos residents.

“This project reflects the engineering community’s resolve to actively contribute to solving Nigeria’s persistent housing challenges,” Oguntala said. She urged governments, development partners, and private sector stakeholders to support similar collaborations to achieve sustainable urban development.

The development will feature 18 three-bedroom terrace units equipped with amenities including a swimming pool, gymnasium, ample parking, CCTV surveillance, reliable water supply, and constant power through generators. According to Locke Homes CEO, Mr. Gboyega Fatimilehin, construction is expected to be completed within 13 months, and all materials and designs will adhere to industry best practices.

For Lagosians struggling with access to quality housing, the project represents hope. “This is more than a building; it’s an opportunity for families to enjoy secure, modern, and comfortable living spaces in a city where affordable housing is scarce,” said Tunde Makanju, representing LSDPC.

The NSE Ventures Limited Chairman, Olufemi Dosumu, highlighted that the project also aims to create jobs and nurture young talent in engineering and construction. “As we break ground, we break barriers—opening doors for skills development and contributing to national growth,” he said.

With rapid urbanisation putting pressure on housing across Lagos, initiatives like this signal the potential for collaboration between professional bodies, government, and private developers to provide durable solutions for residents and stimulate economic growth in the construction sector.

The post Engineers, LSDPC Break Ground on Modern Housing Project to Ease Lagos Deficit appeared first on Housing TV Africa.

Lagos State Governor, Babajide Sanwo-Olu, has called for deeper collaboration between the government and the private sector to address the state’s growing housing deficit.

The governor said affordable and sustainable housing delivery cannot be achieved by government efforts alone, stressing the need for partnerships with private developers, investors, and financial institutions.

Sanwo-Olu made the call on Tuesday at the Sixth Lagos Real Estate Marketplace Conference held on Victoria Island, Lagos. The event was organised by the Lagos State Real Estate Regulatory Agency (LASRERA).

He said his administration remains committed to building an inclusive housing sector but noted that meaningful progress depends on leveraging private capital, innovation, and structured financing models.

According to the governor, housing plays a critical role in human dignity, economic productivity, and social stability, adding that affordability must reflect the real income levels of residents.

Sanwo-Olu said the government’s role is to serve as an enabler, regulator, and strategic partner, rather than the sole provider of housing.

He added that sustainable urban development requires coordinated planning that integrates infrastructure, housing, and access to workplaces.

The Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, said the state’s housing and infrastructure initiatives have positioned Lagos as a model megacity in Africa.

He noted that regulatory agencies play a crucial role in ensuring innovation in the real estate sector does not compromise safety, transparency, or compliance.

Also speaking, the Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare, said the conference provided a platform for government and private stakeholders to jointly tackle housing challenges in a rapidly growing city.

She disclosed that the state government is reviewing a new tenancy bill at the Lagos State House of Assembly to clarify the roles of real estate practitioners and improve property transaction processes.

Stakeholders at the conference discussed innovative financing options, infrastructure investment, and global best practices aimed at meeting Lagos’ housing needs.

A recent Lagos housing market report indicates that the state faces a housing deficit of over 3.3 million units, including hundreds of thousands of homes classified as unsafe or lacking basic services.

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