By Tunji Faleye
Nigeria is grappling with a severe housing deficit estimated at 28 million units, according to the Minister of Housing and Urban Development, Ahmed Dangiwa.
Speaking at the Saudi Arabia Real Estate Forum in Riyadh, the minister highlighted the urgent need for large-scale housing initiatives to address the country’s growing urban migration and accommodation crisis.
Dangiwa outlined the government’s approach to tackling the deficit, emphasizing the role of public-private partnerships, innovative financing models, and direct government intervention. He also noted ongoing efforts to work with state governments to ease land acquisition challenges, a significant barrier to affordable housing development.
“To bridge the gap, we are prioritizing large-scale housing projects through collaborations with private sector partners and implementing policies that facilitate affordable homeownership. Land accessibility remains a major issue, and we are engaging with state governments to unlock land for housing initiatives,” he stated.
Attracting foreign investment
As part of efforts to revamp the sector, Dangiwa revealed that Nigeria is actively seeking foreign investments, particularly from Saudi Arabia, to accelerate housing development. He positioned the country’s real estate sector as a promising market for Middle Eastern investors, citing its strong growth potential and lucrative returns.
“The real estate sector contributed approximately 5.2 percent to Nigeria’s GDP in 2024, and market volume is projected to reach $2.25 trillion by the end of 2025,” he stated. “Despite this, the demand for residential housing remains high, making it a prime opportunity for foreign investment.”
Acknowledging the need to balance affordability with profitability, Dangiwa detailed various government initiatives designed to support housing development. These include:
Strengthening public-private partnerships to accelerate housing delivery.
Offering incentives such as easier land access, low-interest financing, and guaranteed offtake agreements for developers.
Expanding the National Social Housing Fund to provide long-term, concessional financing for low- and middle-income earners.
Recapitalizing the Federal Mortgage Bank of Nigeria with N500 billion to provide single-digit mortgage rates, making homeownership more accessible.
Focus on sustainability and local material production
Sustainability is also a key focus of Nigeria’s housing policy. The government is promoting the integration of energy-efficient designs and locally sourced building materials. Partnerships with international organizations like IFC EDGE are facilitating green building practices through technology transfer and financial incentives.
To reduce reliance on imports and lower construction costs, the government is establishing Building Materials Manufacturing Hubs across Nigeria’s six geopolitical zones. This initiative is expected to create jobs and stimulate local industry growth.
Strengthening policies for a more investor-friendly environment
To attract more investors, the government is refining regulatory frameworks, streamlining land acquisition processes, and collaborating with the Nigeria Governors’ Forum to fast-track housing project approvals. Dangiwa reaffirmed Nigeria’s commitment to fostering a stable and attractive investment climate in the real estate sector.
With these comprehensive strategies in place, the government aims to significantly reduce the housing deficit while positioning Nigeria as a top destination for real estate investment in Africa.
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