Nigeria's Housing Deficit Exceeds 20 Million as Rising Building Costs Push Abuja Rents Higher
- Nigeria's housing deficit exceeds 20 million units, worsening the accommodation crisis nationwide
- Real estate developers urge government intervention to reduce construction costs and increase affordable housing access
- Proposed legislation aims to regulate the real estate sector, enhancing transparency and protecting buyers from fraud
Nigeria's housing crisis is worsening, with the country's housing deficit now estimated at more than 20 million units as soaring construction costs and limited financing continue to drive property prices and rents higher, especially in Abuja and other major cities.
Real estate developers are now calling on the Federal Government to intervene urgently by reducing the cost of building materials, improving access to affordable land, and expanding housing finance to ease the burden on millions of Nigerians struggling to secure decent accommodation.
Source: Original
Rising construction costs fuel housing crisis
Speaking at a youth entrepreneurship programme in Abuja, Amos Gbadewole, Vice Chairman of the Real Estate Developers Association of Nigeria (REDAN) in the Federal Capital Territory, said the rising prices of essential construction materials have significantly increased the cost of developing homes.
According to him, the prices of cement, steel reinforcement bars, sand, and other building inputs have climbed sharply in recent years, making it increasingly difficult for developers to deliver affordable housing projects.
"Nigeria is a capitalist economy, and the cost of inputs determines the cost of output," Gbadewole explained. "Government regulations and incentives are needed to reduce the prices of building materials and make housing more affordable."
The increase in development costs has had a direct impact on rental prices, with residents of Abuja, Lagos, and other fast-growing urban centres facing record-high rents amid an insufficient supply of homes.
Abuja, Lagos face mounting housing pressure
With Nigeria's population now estimated at over 250 million, demand for housing continues to outpace supply at an alarming rate. Rapid urbanisation and migration into cities such as Abuja and Lagos have intensified pressure on available housing stock.
Gbadewole noted that developers face challenges beyond the cost of materials. He identified difficulties in acquiring land, inadequate access to long-term financing, and shortages of skilled professionals as major barriers to increasing housing supply.
"Many developers do not have the capital required to purchase land and embark on large-scale housing developments," he said.
As inflation continues to erode household incomes, housing affordability has emerged as one of the biggest concerns for Nigerian families, many of whom now spend a significant portion of their earnings on rent.
New real estate regulations gain momentum
Amid growing concerns over fraud and uncompleted projects in the property market, Gbadewole threw his support behind a bill currently before the National Assembly seeking to strengthen regulation within Nigeria's real estate industry.
The proposed legislation would require estate developers and realtors to obtain licences before operating, a move expected to improve transparency, professionalism, and investor protection.
According to him, the bill has already passed first and second readings in both chambers of the National Assembly and is awaiting further legislative action.
"If the law is passed, regulators will be able to identify legitimate operators and strengthen oversight of the sector," he said.
Industry experts believe stronger regulation could help restore confidence in the real estate market and protect buyers from fraudulent schemes that have plagued parts of the sector for years.
Mortgage financing seen as key
Gbadewole also emphasised the importance of expanding mortgage financing to help more Nigerians become homeowners.
He pointed to initiatives by the Federal Mortgage Bank of Nigeria and Primary Mortgage Institutions aimed at improving access to housing loans, describing mortgage financing as one of the most effective tools for narrowing the country's housing deficit.
Despite the mounting challenges, he encouraged young Nigerians to explore opportunities in real estate, particularly in property marketing and brokerage, which often require relatively low start-up capital.
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As Nigeria battles a housing shortage affecting more than 20 million households, stakeholders insist that sustained collaboration among government, lenders, and private developers will be critical to increasing housing supply, stabilising rents, and making homeownership a reality for millions.
Builders, homeowners express outrage over the cement price
Legit.ng earlier reported that stakeholders in Nigeria’s construction and housing sectors have expressed concern over the sharp rise in cement prices, describing the current cost of about N12,000 per bag as excessive and damaging to efforts aimed at delivering affordable housing.
They warned that if prices remain at current levels, many Nigerians will struggle to own homes, despite ongoing initiatives by federal and state governments to reduce the country’s housing deficit.
The concerns come shortly after the Federal Government added cement and several other products to the list of prohibited imports.
Source: Legit.ng
