They believe Nigeria’s housing finance laws are outdated and can’t keep up with the country’s needs. As evidence, they point to successful reforms in other sectors, such as pensions and telecommunications. These industries were once struggling, but with the right changes, they’ve attracted investment, created jobs, and grown rapidly. Experts now want the same for the housing sector.

Ayo Olowookere, who leads Imperial Homes Mortgage Bank, highlighted the problem. He noted that the National Housing Fund (NHF) law was introduced in 1992. Yet, decades later, it has only gathered about half a trillion naira. In contrast, the pension industry—reformed years later now manages over N24 trillion for 16 million contributors. This, he says, shows how powerful reforms can be when done right.

The housing market is in bad shape. Whether buying or renting, many Nigerians simply can’t afford proper shelter. As a result, millions are pushed into overcrowded slums or unsafe informal settlements. Pastor Matthew Ashimolowo of Kingsway International Christian Centre added to the concern, citing a World Bank report. He said Nigeria needs 700,000 new homes each year to meet demand, but currently builds less than 100,000.

Meanwhile, the population is exploding. With Nigeria projected to hit over 400 million people by 2050, cities like Lagos and Abuja are already struggling to cope with demand. Housing is becoming more expensive, and the dream of homeownership keeps slipping away for the average person.

At the heart of the problem is money or the lack of it. Olowookere explained that mortgage banks don’t have access to long-term, low-interest loans. These are the kind of funds needed for affordable mortgage products. Instead, banks compete in the same market as everyone else, driving up interest rates and making housing loans unaffordable for most people.

Because of this, mortgage banks are forced to improvise. They patch together loans from short-term funds, which don’t fit the nature of long-term housing finance. This not only slows down homeownership but also deepens poverty and widens inequality.

Experts agree: the system must change. They want the government to step in, provide funding support, and lead the charge for real reform. Housing, they say, should not just be a privilege for the rich. It’s a basic right and a national emergency that can’t be ignored any longer.

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This alarming figure underscores the growing struggle of a nation where the population has surged to 220 million, with an annual growth rate of 2.5%. As urbanization accelerates, the United Nations has sounded the alarm: by 2030, 60% of Nigerians could find themselves crammed into cities, adding immense strain to an already burdened housing sector.

Across the country, vast estates stand eerily empty, their high prices making them inaccessible to the average citizen. Meanwhile, abandoned housing projects dot the landscape, grim reminders of promises unfulfilled by both the government and private developers. Real estate experts estimate that bridging this housing gap will require nothing short of a miracle—N5 trillion annually to build 2.7 million homes every year for the next decade.

At the recent Africa International Housing Show in Abuja, stakeholders painted a sobering picture. They revealed that the housing shortfall, which requires at least 550,000 new units annually, could grow even more dire without urgent intervention. For investors, this challenge also presents a golden opportunity—a N5.5 trillion market waiting to be tapped. But the stakes are high, and the clock is ticking.

Nuel Osilama, Vice President of the Real Estate Developers Association of Nigeria (REDAN) for North Central, provided a stark assessment. He argued that if the country is to bridge this gap within a decade, each state must commit to producing a minimum of 56,000 housing units annually. While this vision seems ambitious, Osilama insists it’s achievable if state governments create the right environment and embrace forward-thinking strategies.

Yet, the realities on the ground tell a different story. The value of the Naira has plummeted, driving up the cost of construction materials, most of which are imported. Projects that were initially budgeted at N1 billion now require more than double that amount to complete. This economic volatility has left countless housing projects abandoned. Osilama advocates for government intervention, urging support for local manufacturing of building materials and innovations from bodies like the Nigerian Building and Road Research Institute (NIBRI). Without such support, he warns, Nigeria’s housing sector may remain trapped in a cycle of stagnation.

Adding to the complexity is the paradox of empty luxury homes amid a sea of homelessness. These high-end properties, often built as investments or status symbols, are far beyond the reach of ordinary Nigerians. Festus Adebayo, an advocate for affordable housing, laments that developers are building for those who already own multiple homes, leaving the real needs of the population unmet. He highlights the high vacancy rates in cities like Lagos, Abuja, and Port Harcourt, where abandoned estates have become a common sight.

Government efforts to address the crisis, though commendable, fall woefully short. The Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, announced plans to deliver 50,000 housing units, but this barely scratches the surface compared to the 550,000 units needed annually. While initiatives like the Online Housing Portal and the proposed National Social Housing Fund offer hope, their impact remains to be seen.

Pastor Matthew Ashimolowo, speaking at the same housing show, emphasized the need for innovative financing solutions. Citing the World Bank’s recommendation for Nigeria to build 700,000 units annually over 20 years, he pointed out that achieving this goal would require a staggering N59 trillion investment. Ashimolowo, a seasoned real estate investor, stressed that housing is a “financing game,” with developers needing capital to build and buyers requiring affordable mortgage options.

Insecurity further compounds the problem, particularly in states like Imo, where kidnappings and violence deter investors and developers. Estates that once promised modern living now lie abandoned, overtaken by weeds and serving as hideouts for criminals. Developers plead for improved security and better infrastructure to encourage investment in rural areas, which could help ease the pressure on urban centers.

The story of Nigeria’s housing crisis is not new, but its urgency has never been greater. From abandoned estates in Imo to the dilapidated Shagari Housing Estate in Ondo, the evidence is clear: the nation must act swiftly and decisively. Whether through public-private partnerships, innovative financing, or policy reforms, the time for bold action is now. For millions of Nigerians, a safe and affordable home remains not just a dream but a fundamental human right—one that the country cannot afford to ignore any longer.

The post Nigeria’s Housing Crisis: A 21-Million-Unit Deficit That Demands Urgent Action appeared first on Housing TV Africa.